Ask Mo!

The Question

I get my big money next week. I’m psyched! The first thing I’m gonna do is buy myself a car. What do you think is a better investment (and for establishing some serious street cred), a rugged, mud-eating Land Rover or a sleek and shiny BMW?

Our Answer

The short answer is neither – a car is not an investment because it loses value, or the fancy lingo is that it depreciates, over time. New cars lose value the moment you drive them off the lot and then you’ll end up spending more money on stuff like insurance, maintenance, and gas. Sounds pretty pricy, huh? Getting a new car is fun, and it may be a necessity, but think through how much you want to spend, and how it will affect your overall budget. What’s the fun in having a car when you can’t afford to take it anywhere?! Once you decide on what’s right, do your research, shop around and take your time. And oh yea, bring an experienced friend or family member with you to make sure the salesperson doesn’t take you for a ride.

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