top of page
  • Writer's pictureEkene Uchenu

Why You Should Never Buy A New Car ( Buy or Hire A Used Car Instead)

If you are someone wondering how to afford housing, healthcare, and all the essentials of life, you’re probably happy to hear about new financial tips that can help you spend less and save more. So here’s one of the best money hacks you’ll ever hear: You should never, ever buy a new car.

Never buy a depreciating asset. If it drives, flies or floats... lease it" Jordan Belfort.

There’s negative stigma around not owning your cars, but instead leasing or contract hiring them.

But why would you own something that goes down in value, for example, a car, when you could own something that goes up in value instead, like a house.

To be a smart according to Daniel Dorval, look at the 6 reasons why he choose to contract hire cars instead of buy them. The opportunity costs of capital.

🚘 Putting $50k into a car is crazy when you can put $50k into a rental property. The property should pay more than the lease of the car.

🚘 Vehicles depreciate, property appreciates over time.

🚘 Manufacturer’s finance offer cheaper deals. Someone like Nissan only need to cover their manufacturing and overhead costs. They are not a third party and don’t pay full retail price for the car, therefore, they have no depreciation to charge you; only the cost of finance. It’s a manufacturers way of introducing masses of cars to the market through the back door.

🚘 The car is covered by the manufacturer’s warranty. When you run older cars, they break down more, are an unreliable pain in the ass and can cost a fortune in repairs.

🚘 Within a business, the lease costs are a tax-deductible expense, reducing your corporation tax bill.

🚘 You can enjoy a brand-new car every couple of years.

0 views0 comments


bottom of page