Faster Depreciation and Negative Equity
It’s not fair or right, but new cars depreciate faster than used vehicles.
To put it simply, if you buy a brand new car without a down payment, or if your monthly loan payment isn’t high enough to compensate for depreciation, you could end up owing more than the vehicle is worth.
Why is buying a new car a bad idea?
It’s A Horrible Investment. Buying a new car in general is a bad investment, and just like most bad investments, it’s driven specifically by emotion. You don’t have enough money to purchase the car outright, so you decide to take out a loan.
Photo in the article by “Flickr”