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.

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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?