Buying a new car might be a status symbol but deep down is one of the worst financial decisions you could possibly make. Many millennials are opting to buy brand-new cars as a status symbol to flaunt their financial success.

Buying a brand-new car might be high in value but every move you make driving your new car depreciates the value of the vehicle. Once you drive the car off the lot, the value automatically drops by 30% with most people borrowing money to buy or finance the car.

From a financial perspective, it is not the wisest idea to invest in an asset that automatically depreciates in value instantly and continues to depreciate the more you do. You might be better off buying a used car but if you really want to buy a new car, there are some options to consider.

You can buy a car that is coming off a lease of at least two to three years because these cars are considered good as new, and the best part is you can buy them at a 30% discount while leasing it. You have the option to buy or lease the car.

Buying a car is investing in an asset that you can keep while leasing requires the driver to return the car after the leasing period. Leasing a car is great for businesspeople and they can write the lease off for your taxes.

If you can’t write off the lease, you can buy the car in nearly new condition that is a minimum of three years old which will help save you a ton of money. The money you save from this wise financial decision can be put towards your saving or retirement account where you will benefit from your savings the most.

Another important consideration when leasing a car is knowing how many miles per year, you’re allotted by the people you’re leasing your car from. The average rate is 10,000 miles per year and it’s important that you don’t go over the allotted number of miles that can result in a huge penalty.

This allotment can result in a huge penalty that you should read in your lease agreement before committing and signing a lease. Next time you consider your options for buying cars make sure it’s the best deal for you can commit to your financial choice in the coming future.

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