Mitch
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Mitch in $ Financial Freedom Chasers,

FACT: The Majority of Millionaires buy USED cars - Why they do it may $URPRISE you

Have you ever considered that if you are like most people living in a walking daze .... that Cars are one of the MOST expensive thing you will ever buy that DEPRECIATES in value? It's true. Whenever you buy a new car, the second you drive it away, it loses a huge chunk of its value when you try to sell it again.

Now, before you run off screaming your head off at your spouse for buying that brand new Toyota and then sobbing into your divorce lawyer's arms telling him that some blogger guy on WhoTrades just ruined your marriage, sit in your chair and let me explain why used cars are superior to new and leased cars.

Unlike houses, cars do not net you tax benefits, go up in value along with the real estate market, nor allow you to own something once your mortgages are paid off. Therefore, buying a NEW CAR is ALMOST always a bad investment.

You would think that most millionaires would be more likely to buy a new car than a used car, but statistics tell us otherwise. The fact is, if you want to become successful, it's a good idea to model other successful people, so let's dive in and see why they choose used cars instead. 

The surprising truth is that lower income families are most likely to lease their cars, which means in the long run they are overpaying for their vehicle. Middle income families are most likely to buy new cars, because "hey I worked hard for my money, so I deserve to drive something nice" right? Things get interesting when we look at the behavior of the elite. Most millionaires choose to buy used cars. Their rational? The second I drive away a new car, it becomes used anyway.

You can't put a price tag on owning a used vehicle. There's just that lack of pride you have when you choose to lease it instead. There are other advantages to owning a used vehicle. You can modify the car exactly as you want without worrying that you will terminate the contract you signed with the lease. Also, for used cars - excess tear and natural wear is not something you'll have to worry about at all. Last but not least, you'll have the option to sell the car whenever you want for close to the value you bought it for.

Other reasons why used vehicles are superior includes the obvious stuff, like it being much cheaper. But less obvious facts include the fact that used cars tend to come with lower insurance rates. It's also a great combatant against depreciation. New cars depreciates in value SUPER FAST. 

Of course, this advice works best for the average middle class family, but for the millionaires out there - Geez! You've worked your entire life amassing all that wealth, perhaps just once - JUST ONCE - You could treat yourself to something nice and just get a brand new car.