Friday , September 30 2022

Buying a new car is the worst financial decision


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

This American writer, businessman and motivated speaker, who is known as the best seller of "Auto Millions," believes that buying a new car is "the worst decision we can make".

The moment you take your new car from the sales lounge, it has already lost a significant part of its original value – explains BH for CNBC.

Already a year, your car is worth 20-30 percent less than the original price, and in five years, the drop in value is 60 percent or more.

David Bach feels that the worst of all is that most people borrow money (they get credit) to provide themselves with a new car.

Why would we only borrow money to get almost real estate losing almost 30% of its value?

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

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

Ford Media

Bah also adds that the estimated amount that the owner has to spend on his vehicle for one year is compared to his monthly income and wonders if he really needs a car that costs so much a year or he can go some cheaper, a little bigger but still in good shape?

Despite all the arguments made by David Bach, many buyers (especially in high-level countries) are opting for a new vehicle, which is good for those who follow the logic of this economic guru and buy the same cars after 2 -3 years as conserved half.

In the remarks you can give your opinion on this subject. Could you, if possible, buy a new car or a new half, which will bring you significant savings when buying a vehicle?

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