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Car Advice

You’ve probably heard many personal finance experts tell you this – never buy a new car. But with all that has happened over last year (with the auto sales crash), is this piece of advice still valid today? There is a lot of wisdom behind the advise. First thing that you need to keep in mind is that cars are not assets. It’s all about depreciation anyway. They very rarely go up in value (unless you’ve chanced upon a future classic which, chances are if you’re buying a regular family sedan, not likely) and you’d often loose as much as 20-30% in depreciation as soon as you drive it off the lot. Then of course don’t forget about the battle to find cheap insurance!

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