This content was created by Eric Siu. This content was uploaded by Eric Siu. This is a YouTube video titled "The number one wealth killer" (uploaded 2025-01-21). The excerpt is an informal two-person discussion about personal finance—specifically how buying new cars (and car payments) erode wealth due to rapid depreciation. Speakers cite typical depreciation figures (about 15–20% immediately and ~40% in the first three years), argue against buying new or leasing for most people, and recommend buying a 3–4 year old or certified pre-owned vehicle as the cost-effective sweet spot. Participants are unnamed (SPEAKER A and SPEAKER B) and the tone is advisory/opinion-based.
Chapters
What is the number one wealth killer? Ah, yeah, new cars, car payments in general. So I made this video last year about the number one wealth killer that nobody talks about. In my opinion, I don't think anybody should ever buy a new car. If you're trying to be financially savvy, never buy new because buying a new car is basically just throwing your money away to depreciation most of the time.
And how much are you losing once you drive the car off the lot?
Yeah, off the lot, depending on the model, 15%, 20% right off the top there. And then in the first 3 years, you typically lose 40% of the car's value. That's typical depreciation curves. Obviously, for some sports For some cars that hold their value well, like I think a RAV4 holds their value really well, it might be lower, but on average about 40%. So I'm assuming that you should buy used.
You should also never lease a car, I'm assuming?
Leasing a car could be good depending on who you are, but you should almost try to always buy a car that's 3 years used. I found that that's the sweet spot because if it's 3 years used, it still feels new. It probably has less than 30,000 miles on it, hopefully. And honestly, the models don't change that often. So people will just look at you and they're like, oh, he's driving a new car. And it'll save you so much money. So if you are going to buy a new car, make sure it's 3 years used, 4 years used, maybe certified pre-owned, and you'll save a bunch of money that way.
