Why is buying a new car the worst investment you could ever make? There are a few reasons for that, and I will caution that buying a new car is only a bad investment for some. I think that you can make a good investment by buying a new car, but for some it could very well be a mistake. There are some serious downsides to buying a new car, and there are some things that you really do need to ponder before deciding to buy a new car. Here are some reasons that buying a new car could be a bad thing for you.
A new car depreciates significantly more than a used car. When you drive off the lot in a new car you basically are giving away thousands of dollars. What kind of investor would make an investment in something that is going to be worth significantly less just minutes after purchase than it was when bought? Clearly buying a car isn't something that you are going to do to make more money for yourself, as it just loses value.
A new car might not even be that reliable. What if you end up buying some sort of base model car that is barely worth buying in the first place? I bought a Hyundai Accent once, and while not technically new, it barely lasted me the entire length of my loan. Every summer it was going bad, and it needed to be brought to the shop at least once, if not twice, a year for major repairs. Once the warranty ran out it was just a money pit, and I got rid of it quick.
What happens if you bought a car brand new, and it did that to you? What then? You are stuck with a car that is a headache at best. Sure, you have a warranty, but didn't you buy your car to drive it? I doubt you bought it because you really wanted to take a tour of the garage every few months. Making friends with the mechanic is something you do when you want to work on cars, not when you have to have your cars worked on all the time.
A new car costs more as well. You can buy yourself the 2008 model of a car for much less than you could a brand new model car. Cars are a lot cheaper when you just wait for the next model year to come out. When dealers have to get rid of inventory, they will make better deals to ensure that the cars get off the lot. Why would you buy a brand new car, when you can just wait a few months and buy that same car for a few thousand dollars less?
There are a lot of common sense reasons to not buy a new car. There are price issues, reliability issue potentially, and the investment loses you value. There isn't a whole lot to gain by buying a new car unless you plan on driving it forever, and don't care about selling it anytime soon. Otherwise, just go used, and save yourself a lot of money.