Saturday , April 17 2021

Buying a new car is the worst financial decision



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After a year, the car is worth 20-30% less, says Bach

This American writer, entrepreneur and motivational speaker, known by the bestseller "Auto Millions," believes that buying a new car is "the worst financial decision we can make."

By the time you pick up your new car in the sales hall, it has already lost a significant portion of its original value – explains BH to CNBC.

Already a year ago, your car is worth 20 to 30% less than the initial price and in five years, the drop in value is 60% or more.

David Bach thinks the worst of it is that most people borrow money to buy a new car.

Why would you borrow just to get some property that loses up to 30% of its value almost immediately?

Buyers who want to buy a new Bah car therefore recommend that they choose a rental vehicle at the age of 2-3 years. According to him, such a car is "almost as new" and you can buy it at a 30% lower price. David Bach also advises customers to calculate their annual costs before buying a new car.

Do not just focus on the monthly repayment costs (if you are buying a loan), but note how much the car costs annually, including insurance, fuel costs, regular maintenance and so on.

Ford Media

Bah further states that the calculated amount that the landlord should allocate for his vehicle for a year is compared to his monthly income and wonders if he really needs a car that costs so much annually or can go with cheaper, maybe a little older but still in good shape?

Despite all the arguments that David Bach has made, many buyers (especially in high-end countries) opt for the purchase of a new vehicle, which is good news for those who follow the logic of this financial guru and buy the same cars after 2 -3 years as preserved halves.

In the comments you can give your opinion on this topic. If possible, would you rather buy a new car or a young person, which would bring significant savings when buying a vehicle?


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