The Only Time You Should Buy A Brand New Car

5 Comments

1. Nah gotta disagree with you here. This should be looked at through the lens of more like “only buy a new car if the monthly payments are below a certain percentage of your net income each month”. Most people need a car to work and thus make money. In my case I drive a lot for work. I need something new and reliable with low KM. I make money buy using that car.

   Reply

2. You don’t take a hit on depreciation if you drive the car for 15 years.

   Reply

3. I can’t tell if he means “new” in the sense of current calendar year or in the sense of ‘new to me’ (used). I’ve always bought used cars that are around 10 years old. Typically no more than $15k, and worked to pay extra on it so that I pay less interest overall. I think it is bad advice to say someone should only buy a car if they have cash for the full amount. I tend to drive my cars into the ground, but my family may eventually need a bigger car so that we can all fit in one vehicle. I don’t know if I’ll have cash for it, but I’ll certainly be buying used and putting as much cash down as I can.

   I guess I just think this advice is impractical and there should be some middle ground for when one is truly in need of a new (to you) car.

   Reply

4. This advice is out of touch with the current market. Also, while paying cash is the right move most of the time, if you can get a loan for say 0%, it would be dumb not to do that and invest the money you have saved.

   Reply

5. Not true in Eastern Europe where used cars are valued high while not much is invested towards their maintenance in general. Lot of risk of getting screwed over when buying. Thus better buy a new one even if you don’t have $1M.

   Reply