Smart investments are the key to financial success. We often focus on finding the investments with the highest return and smallest risk. Yet, we often forget that avoiding a bad investment is just as good as finding a good one. Sometimes these investments come in the form of stocks or mutual funds. In other cases, they can be a little harder to spot.
In this video, you will learn why brand new trucks are a terrible investment.
For one, new trucks will depreciate very quickly for several years after purchase. As you can imagine, it is not a good idea to invest in a a rapidly depreciating asset. The counter argument may be that the value provided is higher for new vehicles. This may have some truth to it. Yet, vehicles as little as four years older can provide basically the same value at a fraction of the cost. In other words, the the amount you get out of a used truck per dollar spent is much higher than a new truck. Yes, they both depreciate, but a used truck depreciates much slower. The only thing to keep in mind with a used truck is that you need to look into any signs that the vehicle may need repairs from the start. You will want to avoid used trucks that will need to visit the truck repair shop.