DAE think buying a brand new car straight off the lot is a trap for people who don't run the numbers?

Last month I watched my neighbor sign a 7 year loan on a $45k SUV that'll be worth barely $20k by year 4, and I just couldn't wrap my head around why nobody warned him about the $600 monthly payment eating up his savings.

2 comments

2 Comments

miles_perez4d ago

Wait, did you actually think a new car was a good investment at some point? I was totally in the "I need that new car smell" camp until I ran the numbers on a coworker's lease and realized how much money just disappears. The thing is, the dealer makes it feel like a necessity with the shiny lights and test drives, but the math is brutal once you factor in insurance and depreciation. I get that new cars have warranties and safety stuff, but watching someone eat $25k in value over a few years changed my whole view on it. It's just a bad financial move for most people, no matter how much you want that fresh plastic smell.

walker.robert4d ago

$25k in value over a few years"... wait, that's real? I always figured new cars lost like maybe ten grand tops, I didn't realize it was that brutal. Man, that's just throwing money away.