September 2, 2013

A new car depletes your wealth badly the moment you drive it off the lot. How? What options do you have?

3 thoughts on “September 2, 2013”

  1. Macala says:

    Buying a brand new car is a huge financial decision. It would be a better idea to buy an older car –one that you aren’t buying off of the lot. If a person buys a 30,000$ car after 2 years, you lose anywhere from $10,000 to $15,000 on that vehicle in depreciation. This amount doesn’t include buying insurance or up keep on the car. I have heard that even driving a new car off of the lot brings down the value thousands of dollars. The biggest option you have is to buy and older car. Also, a person needs to save and plan for buying a car.

  2. Ed says:

    I love new cars, but I need one like a hole in the head. You are better off buying leather personnel carriers (shoes). If you do buy a new car, a good option is using USAA car purchasing program. It takes the sting out of dealing with a salesman.

  3. Mike Finley says:

    Well said you two. I think Macala explained the matter quite well in her answer. Most folks think they are getting a “deal” when they get a car or truck with little or no interest on the loan. That is simply there to entice you into buying this very expensive depreciating asset that will cost you many thousands of dollars in the first year (don’t forget about the initial registration fee/sales tax) and much more money over the next few years.

    Macala was right. Focus on buying a 3 or 4 year old car (with cash) from a private party and do plenty of research BEFORE buying. You can hit on the car buying tab on this website to learn more. New cars deplete wealth badly because of that depreciation monster. Don’t let happen to YOU!

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