If you are in the market for a car, experts advise to get only what you can afford and not to buy new. This even more true in the age of $50k+ new luxury cars, SUV and trucks.
While it’s tempting to splurge, best-selling author of “The Automatic Millionaire” David Bach has said that can be the “single worst financial decision millennials will ever make. ”
“Nothing you will do in your lifetime, realistically, will waste more money than buying a new car,” he told CNBC Make It.
In a blog post, best-selling author of “Women and Money” Suze Orman suggested you fall in love not with an expensive car but with a retirement or savings account, or a home: “Those are assets that, over time, may increase in value. A car will never increase in value. It is a depreciating asset that loses 20 percent of its value in the first year.”
If you already have an auto loan, look into some refinancing options, especially if you have good credit. A “prime” or “super prime” score could help you with financing. And if you’re still working on your score, stick with your current car for “as long as you can,” wrote Orman.
The bottom line is, the less money you spend on a car, the more you can put toward other important priorities. And that’s a good step toward building financial security.
Case in point: This stunning 2015 BMW 535GT would have cost original owner $81k+ 3 years ago, next owner can enjoy this like new luxury beast at 70% off of new. That’s the essence of Car Economy 101