Automobile Debt: Why You Should Never Owe a Dime on a Car
Whenever I see an ad for a new car, I think, "Suckers!"
There is no more economically stupid purchase than a new car unless you are very rich.
They are overpriced.
They are illiquid. Only specialists know how to sell them without taking a loss.
There is no interest payment deduction on your federal income tax for auto loan debt.
They keep people poorer than if they bought used and invested the difference.
As a status symbol, the status they symbolize is "dumb consumer."
They are a grown-up version of the secret decoder ring of my youth: "Be the first on your block to own one!"
You need to get from here to there and back again -- cheap, reliably, and without further ado. A used car will do this at one-fifth the initial investment.
If you buy a lemon, junk it and buy another used car. There are lemon new cars, too. But lemon used cars cost a fraction of lemon new cars. You can afford to make a debt-free mistake.
If you want the details on buying a used car and saving thousands of dollars, click here: