Friday, October 1, 2010


Many successful business owners agrees that we should never finance, or invest in, things that depreciate in value (cars,video-games, T.V. etc). Even at 0% interest, a new car is not worth the amount of money advertised.

By the time you arrive home, the car you just finance for 10 000$ is worth 3 000$. You’re paying 7 000$ more than you should.

Then why don’t they just sell a new car for 3 000$? Why would they? A new car will never be sold for less than it’s worth and always be sold for the highest possible price.

The tactics use to sell cars are amazing. They make you pay X more than it’s actually worth and they make it sound like it’s a good deal. How? By having “Rebates”, “Special Events”, “Discounts”.

You know the sad part bout this? I fully realize this only after I bought my first new car!

The definition of depreciation, to me, is a mix between the amount someone is willing to pay for “it” used and how soon the next generation of “it” is coming.

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