10/04/2025
New vs. Used - A little food for thought!
I’m sharing this post because it really hit home for me. Even when you factor in the cost of repairs - and even if you’re not earning 8% on the money - buying used can still put you ahead.
I’ve always owned used vehicles. My current ride is a 2003 Jeep Liberty with just over 212,000 km on it. She’s starting to show her age, but honestly, she owes me nothing. Aside from regular maintenance, she’s been solid - and my insurance has stayed lower too, since the replacement value is less.
It’s wild how much banks and companies profit off our need for new. Between interest, payments, and depreciation, it adds up fast.
It’s not about right or wrong - it’s about being intentional with your money and choosing the path that gives you the most freedom for your life.
My adult son recently approached me, excited, because he’d saved $10,000 and was going to buy a new car. I asked him what he was going to buy, and he said he was going to buy a brand new Mercedes Benz EQE 350 4Matic Sedan. I asked him how much it cost, and he told me $80K. I asked how he was going to buy an $80,000 car with only $10,000 and he told me he was going to use what he had as the down payment and finance the rest. He’d talked to the dealer, and he was already approved for the loan, and his payments were going to be $1227 a month for 72 months. I said, “holy smokes, Son! You’d be WAY better off buying a reliable used car for $10,000 and putting that $1227 a month, every month, into a well managed mutual fund, or even an index fund.” When he asked why that would be, I wrote it out for him in black and white. He looked it over, and let’s just say he’s now shopping for a used car. PLEASE make the young people in your life who are important to you aware of this lesson. Sick Twisted Humor
