Here at The Black Man Survival Guide it’s all about making smart money decisions. Buying a brand new car is definitely not one of them. Outside of the fact that the car salesman will probably sell you many more options, insurances and warranties than you probably need, the thrill of having a new car fades quickly. That “new car smell” will turn into a funky odor once you realize how much money you just wasted.
A new car loses 10% of its value as soon as you drive it off the lot! Your $30,000 Camry just became a $27,000 Camry and you haven’t even got it home to show the family. Save your money and buy last year’s model. No one will care 6 months from now, but you will have saved enough money to take you, your wife and your 2 kids to Paris for a week!
Check out the chart below (courtesy of Edmonds.com) to see how fast your car loses value over time.
After 5 years your car is worth less than 40% of what you bought it for
When you buy a brand new car it loses over 10% of its value as soon as you drive it off the lot.
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