If there’s one thing that Kevin O’Leary and Suze Orman have in common it’s their hold-nothing-back approach to financial advice.
Although they don’t agree on everything, a segment on “CNBC Make It” highlights a shared piece of advice: You should never buy a new car (or perhaps any car).
“You’re thinking about buying a car, but let me give you a new idea,” O’Leary said. “Don’t.
“You should never, ever, ever, ever, ever, ever lease a car,” Orman added.
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This isn’t new advice. It’s advice you’ve probably heard from a lot of people, not just financial experts. But there’s a question to answer: Does this advice still apply in 2024, or is it as antiquated as that old-model vehicle that Orman wants you to buy?
Not only does Orman think that buying a new car is a bad idea, but she wants you to hang on to the one you have for as long as possible.
“Most people I know that are really wealthy keep their cars for five, 10, 15, 20 years,” Orman said. “I keep my cars for 12 years, at a minimum.”
She’s also a big advocate for buying used over new.
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“The second you drive that car off the lot, it depreciates, 10%, 20%,” Orman told CNBC Make It. “Let somebody else get that depreciation.”
However, with the cost of new cars declining — while used prices remain elevated — it may be time to at least consider the idea of buying new instead of used.
The comments on the video are split, with some people arguing that buying new is the way to go.
“I bought a brand new car and it has been my best purchase!!,” one person noted.
As for O’Leary, he has another idea: Don’t buy any type of car. Instead, take advantage of ride-sharing services.
“Cars cost a fortune in maintenance, insurance and just amortization,” O’Leary said. “Even if you use a car every day to get to work, it’s still cheaper to use a shared ride service.”
This advice, while sound in many regards, may not be suitable for today’s evolving automotive marketplace.
Anyone facing a big financial decision, such as buying a vehicle, could benefit from seeking advice from a financial adviser. An adviser provides tailored guidance based on your situation, ensuring your path to financial freedom is strategic and realistic, avoiding risky bets that could worsen your financial situation.
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*This information is not financial advice, and personalized guidance from a financial adviser is recommended for making well-informed decisions.
Chris Bibey has written about personal finance and investment for the past 15 years in a variety of publications and for a variety of financial companies. He is not a licensed financial adviser, and the content herein is for information purposes only and is not, and does not constitute or intend to constitute, investment advice or any investment service. While Bibey believes the information contained herein is reliable and derived from reliable sources, there is no representation, warranty or undertaking, stated or implied, as to the accuracy or completeness of the information.
Image and article originally from www.benzinga.com. Read the original article here.