💰The car mistake that keeps people broke

read time 2 minutes

Hi there,

For a long time, I thought upgrading your car every few years was normal. New car. New lease. New payment. It felt like progress. But once I actually looked at the numbers, I realized something: it’s one of the most expensive habits you can have.

The moment you drive a brand-new car off the lot, it loses around 20% of its value instantly. And within a few years? It can drop to nearly half of what you paid.

That’s not a small loss. That’s thousands of dollars… gone.

And here’s the part most people never think about:

The longer you keep your car, the cheaper it becomes per year.

A $50,000 car might cost you:

• ~$50,000 for the first year
• ~$17,000 per year over 3 years
• ~$10,000 per year over 5 years
• ~$5,000 per year over 10 years

Same car. Completely different cost.

That’s a 90% drop in annual cost just by holding onto it longer.

But car companies don’t want you thinking like that. They want you to upgrade every 3–5 years. Because that’s how they make the most money.

The smarter move? Buy a reliable car. Hold it longer than feels “normal.”
Let the value work in your favor instead of against you.

That’s how you save tens of thousands over time.

And before you even buy a car, there are two things most people skip:

First,  know what you can actually afford. There’s a simple way to calculate this properly, and I break it down step-by-step in my guide to making your first $100K. Download it here.

Second, compare insurance offers.
Different providers will quote you completely different prices, and taking a few minutes to shop around can potentially save you hundreds every year. Compare offers from my most trusted providers here.

Because building wealth isn’t about looking rich. It’s about making decisions that quietly keep more money in your pocket.

Using my affiliate link helps support my team and I to create new content for you every week. Thank you! 

- Milan and Team

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Milan Singh may earn affiliate commissions from the links mentioned. All recommendations and opinions are Milan’s own. This may impact how and where links appear on this site. This site does not include all financial companies or all available financial offers.