Unless You Are Rich, Don’t Buy a New Car

Cars are the second most expensive commodity people buy after houses. On average, people are expected to change their cars every 3 to 4 years, making the total amount of cars a person is expected to own during his lifetime between 10 and 15.

Why You Should Not Buy a New Car

Cars are depreciating assets losing, on average, 20% of its value as soon as they take a new owner. An average price of a new vehicle being 30.000. A person is expected to lose 6.000 as soon as they acquire a new car.

This means that buying a new car is not a smart investment; as an investment by definition, we expect to get a positive return from. 20% loss is not intelligent.

After paying 20% for buying a new car, we also need to consider the average depreciation rate of 15%, which after 3 years of ownership, comes back to an estimated total loss of 19.200. This means that a car only worth 33% of the price after its acquisition.

Today’s cars are built so that they are expected to run 150,000 to 200,000 miles. Considering that an average American spends 9,500 miles on the road, which ads up to about 28,500 miles in 3 years (20% of the total expected run), the loss of 67% on investment does not seem justified.

Don't Buy a New Car

So What is a Solution?

Consider buying a 3-year-old car that does not have a lease. After 3 years of use, the car still should be at its all-time high considering proper maintenance. Original owners will absorb the most significant part of depreciation, and you will always have an excellent vehicle to drive. Did you know that car dealers spray a “new car smell” spray into new cars? It is true. A natural smell or a car interior is not that smell we are used to.

Picture of Roman Russo: Author of Optimal Happiness

Roman Russo: Author of Optimal Happiness

Roman Russo wasn't always happy and struggled with his own negative emotions, anxieties, and depression, until one day he pledged to resolve this part of life, whatever it took. The journey took 6 years, but it was worth it. Today, Roman considers himself to be one of the happiest people alive, part of the 1% of the happiest elite, and he now teaches others a working and universal happiness formula to reach a similar goal. He offers his best advice on Optimal Happiness social media, newsletter, blog, and books, and teaches a complete and unconditional happiness formula in his online courses.

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“The problem is that of optimization,” states Roman Russo, author of Optimal Happiness: The Fastest & Surest Way To Reach Your Happiest Potential. There is plenty of advice on how to be happier or less sad, but no one is speaking about how to become the happiest we can be. And this is the difference that makes all the difference. By not looking at our maximum potential for happiness, we fall short of achieving it. After all, we all have hundreds of ideas on how to be happier or less sad, but most people still feel like they are not living their best lives. As such, Optimal Happiness explores the question of how to be the happiest we can be, regardless of who we are, where we are from, and what our life circumstances are. It proposes a complete and unconditional formula for happiness and explains how you too can become happy today and forever, inviting you to join the 1% happiness elite and become one of the happiest people alive.

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