Millennial Millionaire: Don’t Buy A New Car

Millennial Millionaire: Don’t Buy A New Car


Don’t buy a new car it just doesn’t make
any sense financially. Buying a new car it’s one of the worst financial decisions that you can make in your life. Buy the nicest kind of used car that’ll
get you from point A to point B. Carpool if you can. Use public transportation. I call this the “net impact” of spending money. Like a $40,000 new car that you buy. If you invest that instead, that $40,000 car is gonna be worth $300,000 or more of invested money in 30 years. And you might be thinking of “Ugh. But I
really want this car.” It’s up to you. I’m not telling you to buy the car or not buy
the car. Just realize that you’re trading two things when you buy a new car. The
first, you’re trading all of your life that you spent making the money to buy
it. So say you make $20 per hour after
taxes, that $40,000 car it’s taking you over 2,000 hours of your life to buy it.
Depending upon how much you work. The average American works a little bit less
than 2,000 hours a year. You might be working an entire year just to buy that
car. And in addition to the money that you’ve traded to buy it, you’ve lost the
opportunity for that money to grow over time. As I mentioned, growing to over
$300,000 in 30 years. And so you’ve missed that growth opportunity.

About the Author: Michael Flood

73 Comments

  1. I live in Southern California soo public transit is not an option I’ve been leasing for a few years but once my lease is up I’m gonna look into buying a decent used car Soo I don’t have any more monthly payments.

  2. Man.. perfect timing I’ve been thinking of a car that would last me a lifetime but your vid will help me

  3. It depends whete you live. Now with ridesharing apps, bikes, scootet companies, etc its became easy to not have a car if your in a big city.

  4. 300,000 in 30 years? that’s a joke. by then most people watching this will be near their 60’s and too old to enjoy life. if u wanna buy a brand new car just be responsible about it.

  5. I get what he’s saying but I don’t think it’s that simple. If you tabulate the time spent waiting on public transport and the hassles with carpooling you’re actually getting value for owning your own vehicle. Buy a Tesla. Astronomically less moving parts so it’ll last well over 30 years.

  6. I can’t afford Healthcare but i have a $600 car payment $200 cellphone payment and $200 internet and tv payment and i go to starbucks everyday , please help me and give me “free” healthcare 🤣🤣😭😂

  7. Nothing like the freedom of a car. Enjoy the opportunity of the usa. , you could be dropped of in Somalia

  8. I would love to do what he said, but in my city, public transit is expensive and I would have to allocate more time for work commute, plus Uber doesn’t exist in my city. Just don’t buy a needlessly expensive car, and do note the savings electric cars can offer.

  9. I bought a new car only cause it was electric and I didn’t want my car to run on Dino bones. Really good decision actually

  10. I make $125k, and I'm single living in LA. When it came time to buy a new car last year, I chose a used $7k Nissan Sentra, when I could have easily afforded the payments on a $20k Honda Accord. My rationale was to stay as liquid as possible and just buy something that could get me where I needed to go.

  11. Not buying a car in US is simply not practical where public transportation barely exist. But in most parts of Europe which I've seen, you can easily live without a car, and rely completely on public transportation and a bike.

  12. 8 fold on investment this is what they sell you lock up your income for 30+ years on a 401k. 401k adjusted for inflation and downturns and historical tax charts you basically are just keeping up with inflation. Buying a new car is a waste but the pipe dream of this 401k nonsense is out of control. Wall street works for them not you.

  13. I live in Houston. A car is a must. New may not be. I don’t want someone else’s problems. I’ll buy new and cut back somewhere else. Thx.

  14. Now after 30 years, the value of 300,000$ will be relatively lower compared to now due to inflation. Probably a car, 30 years later might cost 300k$,probably you might be dead , life is short, just live it up 🙃

  15. What about Jeep wranglers they hold they value unlike other cars you can sell like it 5 years later for like 5-6k less then what you paid for it

  16. What happens to all your invested money when you die? Wouldn't you rather buy a nice (yes, 50K) car and improve your quality of life? What a bozo!

  17. I bought a $25K nice looking new car when I got my first job out of college. Worst financial decision EVER. If I could go back, I'd get a $10-12K used car instead.

  18. Tell me something I don't already know and I bought a brand new Tesla, because it's my life and I get to do whatever 😎

  19. 40.000$ and win 300.000$ after 30 years? That's not the way. What do i do? I miss the chance of having a great time driving a car for 30 years? I don't buy it

  20. lol …i get it with being frugal when ur salary is less than 50k per year … but comeon … no rich person became rich cos he saves on his car…. thats reality. so u may have 300k saving 40k in 30 years… but a person can enjoy his life before that not when hes before his death bed.

  21. It makes me my legs. I get reduced tax-freedom due to necessity. I think it is a great option. The car needs to be bought new. Maybe you should think twice…..my ex got his own back for mocking me.

  22. Buy whatever you want but always make sure your income is more than your expenses. But don't live below your means. If your expenses is $100 then make sure your business provides you $200

  23. I'm a car enthusiast, so I ignore such advice 🙂 Life is short. Don't wait 30 years until you buy the car you've always wanted.

  24. you can't look at it this way… people do many things that require money that could rather be invested – traveling, clothes, dining, entertainment etc. That is a utility that you are getting for your money, enjoyment. It IS a tangible return. Driving a nice car is a luxury purchase – agreed, but that does not make it a bad financial choice. Money is earned to be enjoyed, within responsible levels of course.

  25. take 20 years life and ideas and FUTURE . Global Ideas of People -Build Global 1st Online FUTURE COUNTRY . www.futurevisionaries.com

  26. I agree. I mean you can buy a new car if you can wait for the new car pass by another year. For example, buy new car for 2018 instead of 2019.

  27. We live in a disposable car era. The idea that new cars waste money is stale. Old cars that need repair waste a lot of money. New cars have a range- cheap to expensive.

  28. Buy a car you can afford. I personally don't know anyone who has 40k in cash to buy a car or invest. And public transit isn't saving you a ton of money or time.

  29. I value SAFETY. Cars are getting safer and safer every year. I therefore buy or lease a brand new car every 2 years.

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