Brianna Williams was ecstatic. She whipped out her phone and hopped on Instagram Live. “I bought a new car! Look at me now! Beep beep!”
Little did she know, in just a few months she’d regret it.
Unlike homes, gold or stocks, new cars are NOT an investment. In fact, they depreciate at faster rates than almost ANY other purchase!
Every year, a new car goes down in value by about 20%. There was a LOT the dealership didn’t tell Brianna.
“These car payments are crazy,” she realized. Owning a car can cost more than $10,000 a year with payments, insurance, gas, and maintenance – and her high interest rate meant she’d be paying it off for YEARS.
Then her friend rolled up and showed her the way.
“Did you see my car?” asked Brianna’s friend. “Oh, girl, it's not new,” she explained.
Buying a more common, used car means she got a huge discount, a great interest rate, and she’ll save thousands on maintenance. “I saved so much, I’m putting money toward retirement and am even going on vacation next summer,” she exclaimed.
Buying a new, fancy car might look flashy, but it’s almost always a TERRIBLE decision. If you need a car, buy used – these smarter financial decisions will provide you with more money to save, invest, or spend!