Brand-New Car With Cash?

A listener asks if Dave would be against buying a brand new car with cash.

QUESTION: A listener asks if Dave would be against buying a brand-new car with cash.

ANSWER: I would not be against paying cash for a brand-new car under one condition: you must be able to afford the loss that depreciation is going to cost you.  If you can afford for the value of your car to go down by thousands of dollars the day you buy it, then you can buy a brand-new car.  The only people who can afford to do this are millionaires. 

Also, remember that your purchases of transportation (i.e., cars, boats, motorcycles, a Seadoo, etc.) should never total more than half your annual income because they are going down in value.  Decide to live without the new car smell and buy slightly used cars.

Jump-Start Your Goals!

Jump-Start Your Goals!

Get our 8-Day JUMP START series and weekly newsletter that are packed with articles and tools to help you win with money.

Reach Your Money Goals

Reach Your Money Goals

Start with a budget. Join the millions already budgeting with EveryDollar!

Create My (FREE) Budget

Thank You!

Your 8-Day Jump Start is on its way to !