▲ 90 r/moneyadvice
Buying a new car is a terrible financial decision
Feels like buying a brand new car is a bad financial move for most people
You lose money the second you drive it off the lot. Once it’s used, the resale value drops fast, even if nothing’s wrong with it.
A 1-3 year old version of the same car is often way cheaper, and it still looks/feels basically new.
Also, if you finance, interest adds up. At the average new-car APR of 6.56%, financing $30k for 5 years is about $5k in interest.
That money could go to paying down student debt, housing, savings, investing, or just having more breathing room in general.
u/Flexcar_Sam — 11 days ago