8 Investment Mistakes That Will Make You Broke

2) Expensive new car

Classic to fancy cars have caught the attention of the curious and potential investors alike. While they are fun to drive and look at, a new car, an old one for that matter, don’t make for very good investments.

The first thing you need to know about new cars is that the depreciate in value the moment you drive it off the car lot. This means if you were to drive your car from one car lot, and a mile down the road, you will likely not be able to sell your new car for the same price you bought it for.

Depreciation is combination of two factors. The first is that you are purchasing the marked up price, even if a dealer gives you a “deal” on the MSRP. Secondly, the moment you sign those papers, your car went from “new” to “used”, which when it comes to cars is a big deal.