“Why would anyone pay half a year’s salary to buy the fastest depreciating asset on the planet?” is a question asked by authors Stanley and Danko in their book The Millionaire Next Door.
Driving a new car off the showroom floor is a very costly proposition. On luxury brands, driving out that door usually costs at least $10,000-$20,000 and in some cases, even more than that.
A cars’s value typical falls by ¼ at end of first year to ½ by the end of the third.
Many cars that have been turned in from 12-, 24- and 36-month luxury leases still look like models on the showroom, have been barely used, and are still covered by full new car warranty. Yet they sell for as much as half off their original price
But where can you find these cars? How do you know the cars haven’t been damaged? How can you know a fair price to pay?
These are the questions asked by both millionaires and wanna-be millionaires.