The Only Time You Should Buy A Brand New Car

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[gabrieljosue]

Depreciation only matters if you are the kind of person who change cars every 2 years. My new 2009 accord had 300k on it. It has paid for itself 10 X with minimal maintenance. A car is more than just a depreciating asset, the value of it relies on the use you give it every day for work and pleasure.
A used beater is definitely going to be cheaper than a brand new vehicle but NO USED CAR IS FLAWLESS, the engine may be reliable but the AC will top working, the seats will be less comfortable, they will develop oil leaks, and many of the thousands of components will start to guve in and require more money to maintain. Sure it may still be cheaper than a new car payment but you pay with your mental sanity by living in costant stress about it, fearing long trips and overall not having the comfort and safety of a newer vehicle.

[FedUpVet]

The only people who truly worry about depreciation are the ones who trade theirs in every few years. If you typically drive a car for ten years, depreciation isn't an issue. The real problem this country has when it comes to vehicle debt is the need to keep up with the Joneses

[TripDadLife]

You know what depreciates worse than cars? Groceries. Worst investment ever. Nobody should ever buy groceries.

[stevee]

$1m net worth before you can buy a $30k Toyota Camry is ridiculous. This isn't even the advice Dave gives (used to give?) which was you can buy a new car if it costs half your annual income or less and you can pay cash.

[juanitamayberry]

I bought a 1998 Toyota Camry for just a few thousand dollars in cash. It’s the best car I’ve ever owned. It’s still going strong!

[yct.]

Bought used cars my whole life tbh it sucks the constant breakdowns not having a vehicle to go to work, etc so then I decided to buy a new car nothing special Toyota 4 runner cost me around 43k - down payment and it’s the best decision I have make no more breakdowns if I have one the dealers loans me a car 😊

[CrossForum]

I bought my Toyota Corolla new it 2006 for cash. I've kept up the maintenance on it, it still runs great, I have no intention of getting rid of it until it costs me more than a newer car to maintain, it gets totaled, or something catastrophically fails on it.

[stevewenners]

It's a matter of opinion and perspective. 99% of the time you're not going to have any breakdown issues for at least 50, 000 or more miles. That piece of mind is what the "depreciation" is actually paying for. The inconvenience of breaking down can't be quite terrifying for a lot of people & for multiple reasons.

[kenfrank]

According to him, buy a new car and have $1000 in depreciation right away. But, if you buy a used car you will have to spend more money for tires, brakes, battery, etc sooner than with a new car. Also, you may want to have the used car inspected by a mechanic before buying. That's more money to spend. And buying a used car is always a crapshoot, as you may end up with a problem car, or car that requires more maintenance than you considered.

[unknownindividual]

Wait why would you need a worth of a MILLION dollars to buy something that only costs 20k... that seems to excessive

[TheAnswer]

The only thing is bew cars need less maintenance... Less repairs... Less of your time to be chasing issues...

That has been my experience...

I totally understand what they are saying, not disagreeing, just my experience...

[cutenobi]

I see some comments that shows people getting offended; ultimately, everyone responsible for their own successes as failures.

[teamgartz-motorsports]

I agree. That’s what I did. Before that I would only rent when necessary. However if I was not in a place with public transportation, I would have the cheapest used car until I build my wealth.

[VWTalk]

This is sound advice if you have the ability to choose and vet the used car well. This ignores the fact that you may be taking on significant risk that the used car is a dud.

[codyhughes]

This is where I disagree with Ramsey and his staff. It depends on the deal. If you’re buying the new car for the same price as a used one it doesn’t matter. But, most people also need to keep their car at least 10 years.

[thejoyofrolling]

Well considering I'm planning on putting at least 400, 000 miles over the next 5 years I want to drive comfortably. I got hit on my motorcycle and need a safe, comfortable car. I will drive it and use it to work to make $80, 000+ yearly. Thank you very much

[metallkopf]

Depreciation it's only a bad thing if you want to sell your car. Otherwise buy cars that are used but not old. That way you benefit from depreciation.

And if you don't invest your money, your money also depreciates with time due to inflation...

[ferdinandmunoz]

I paid $46k cash for my Honda passport, I have no debt with the exception of my 300k$ home, which I put $80k down, 10k in closing cost and financed for 15 years, and I don’t have a 1 million dollar evaluation. But I do own 2 other cars, also paid in full.

2020 Honda accord - 28k$ cash as well & a 2012 ford f-150 fx4 - 13k$ paid in cash too.

I have a monthly income of 11k$ after taxes and only have 3, 500$ - 4, 000$ in monthly bills.

2, 300$ mtg payment, 300$ light, 100$ water, 600$ groceries, 200$ gas, and the rest on random purchases.

My company pays for mobile device and home internet.

5k$ gets moved to my personal saving account and the rest stays in my checking account to keep a high checking account balance.

So, I’m not sure if I agree with his evaluation.

[ChristoWhat]

I bought a 2024 WRX and paid half on the day. So yeah it's depreciated some but it's still worth more than the loan I have on it

[hasanlituran]

Invest in a 2016-2019 Toyota Land Cruiser, you'll sell it for 10k more than you got it for in 5-7 years, and it won't give you any mechanical issues