You Shouldn't Buy a Brand New Car Until You're a Millionaire

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[rogercarlson]

I don't always agree with Dave, but you have to remember that he's mostly talking to people who have lost control of their finances. To those folks, never buying new and never buying on credit is the best advice.

[cheffjeff]

I think people try to much to enjoy the fruits of their labor before they are ripe

[JohnSmith-djgf]

I’m a millionaire on paper and recently paid $35k cash for a plain Jane 2019 Toyota Tundra with 42K miles. Expect to drive it for the next ten years at least. Wife drives a paid off 2016 Toyota Avalon.

[jacobsmithjr]

Talk like this scares the HELL out of car dealerships. 😆

[DaveSHarris]

I agree somewhat, but not all of us will be like Dave.

My dad died at 58 and never got to experience anything ‘fancy’. It’s one thing being wealthy but not at the expense of some enjoyment along the way.

Live your life. Don’t be reckless, but don’t put it on hold for ‘someday’. Life is finite and can be taken away at any time so enjoy it too.

[jojokeane]

I mostly agree with Dave. The exception is that when I bought a new Honda, I realized it was cheaper to buy a new Honda since they hold their value so well. The only catch is that I needed to dtive it for 8 years. So I did. Then I bought an even nicer Honda.

[jimflowers]

My net worth is about double the stated requirement, and I drive a 2010 Ford F-150. I don't plan on replacing it until my child is out of college in four years.

[jasonbennett]

The difference between buying when you can afford it vs buying hoping to afford the payment.

[ryanhunsader]

I can say as someone who works at dealership. The amount of brand new vehicles that come in weeks later would astound you.

[joek]

Go to a car dealership and compare the sticker prices on some brand new cars and then cars a couple years old with 20-30k miles. I choose to pay a few thousand more and get a brand new one. Then I get a lower interest rate as well.

[lindamulhall]

My used 2006 Saab bought when it was 4 years old for $15, 000 is still on the road and still running great in 2024. Buy wisely and maintain it properly.

[Almost_Over]

Maintenance and unreliability of a used car cost about the same as a new car payment if u get something modest

[thebigmann]

I purchased a used 2005 suburban $3000. No issues brand new tires. only thing i needed was a oil change and new brakes.

[ebwholesaler]

At one point i was - $518, 000.00

Now i am - 404, 000.00
My credit still good !

If i die now, i save 1/2 million, lol

The short term plan is to lower it in the 3xx, 000 and never again get higher than 400k (in 2025)

The long term plan is to refund ALL to retire and die with HONOR, lol.

Now i must be worth 2.5 million, still: no cash into my hands...

[Reaperofwind]

The price of new cars now vs used after 5 years is 5% for a Corolla vs civic and that is with 75k miles I’m buying new at zero miles for 5% extra.

[xlerb]

I guess I followed that advice. We've always spent very little on cars but awhile back we unexpectedly needed a car and new cars were selling for about the same as a good low mileage used car. It was still a pretty modestly priced car.

[LindseyHarvell-vcez]

In most cases he’s right. But some new cars are less than a used car or very close in price with better warranties.

[nathanhatcher]

Dave put in a way most understand though i tell my kids to be smart about it, think about what it cost you per a year of ownership when it comes to financing your transportation such as payments, taxes, full coverage insurance, fuel and maintance. It easy to look at what others have and want that too but also repo companies want them too!

[jpmacoo]

I buy used, but I do about 80% of the maintenance myself. Oil changes, brakes, alternators, but leave wheel bearings and fuel pumps, etc to a mechanic.

I can fix most emergencies, but if i didnt know anything about cars, id have been stranded a few times over the years.

Some people need something reliable, that won't leave them stranded. So I understand why they buy new. And I live in rural New England, where they dont do a great job of plowing, so you need 4WD, which adds to the cost of both new and used.

[lazyshira]

My parents always bought brand new simple cars (no frills but reliable). They kept them until the car was no longer able to take them from point A to point B. That meant 10 or 15 years if I recall correctly. They weren't fans of cars, for them a car was a purely utilitarian thing.