If you are thinking about buying new car don’t do it, says self-made millionaire and bestselling author David Bach.
In a recent CNBC Make It segment, Bach said buying a brand new car is the single worst financial decision Millennials will ever make.
“When you buy a brand new car it smells good, but drive it off the lot and it drops in value by 30%,” Bach said. “Most people borrow money to buy that car – why would you borrow money to buy an asset that immediately goes down in value by 30%. Don’t do it!”
Instead, Bach said if you really want that new smelling car, buy a car that’s coming off of a lease that’s two to three years old.