Buy Discounted New Or Used?
Hear Dave say why Travis would be insane to buy a new car right now.
QUESTION: Travis has been trying to get an emergency fund going, but keep running into hurdles. Their 8-year-old car is starting to give them problems and will cost a couple thousand dollars to fix. Should he buy a new car that is discounted or a used car?
ANSWER: Buying a new car would be absolutely insane since you are broke. You don’t need another $15,000 or $20,000 in debt and new cars go down in value like a rock, and that will make you even broker. I’d fix the car and drive it, but you don’t need to spend $2,000 to fix it. Spend $1,000 and don’t take it to the dealer. If you can do it yourself, then you know it won’t cost $2,000. Spend a little bit each month to fix this car up instead of getting a car payment so you have some money to throw at your other debts.