By Lesley Scorgie
A few years ago I was driving from Calgary to Banff and my car stopped working. It wouldn’t accelerate past 30 km/h and it was whining and grumbling the entire way. When I got to the mechanic he said “Lesley, this car is toast! The costs to repair it are going to be more than what the car is worth.” So, sadly, after many good years of service I said goodbye to my old car and made the decision to buy a new one. I had a really hard time coming to terms with spending money on a car because it’s a depreciating asset. I know some people would disagree with me, but the truth is, unless you buy a collectors item car, your vehicle is a sunk cost the moment you buy it. Of course, you do receive some benefits from having a car because it increases your mobility.
Cars are super expensive because of depreciation, car payments, repairs, maintenance, fuel, and insurance. SO if you really need one, avoid getting one. But, many people do need one, so here are some tips when you buy.
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Category: Rich by Thirty
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The best thing you can do is go to a public auto auction and find a car with a lot of highway miles on it.