This article was originally published on ETFTrends.com.
Star of ABC’s “Shark Tank” Kevin O’Leary says don’t buy a car because it could take a major toll on your finances.
“You’re thinking about buying a car,” O’Leary said in a recent CNBC Make It segment. “Let me give you a new idea: don’t.”
O’Leary said there are so many shared ride services today, even when you have to leave the city.
“You can rent one,” he said. “Cars costs a fortune in maintenance, insurance and just the amortisation, which means as they go down in value, you’re losing money. Say you pay $25,000 for it – two years later is may be worth only $12,000. I hate cars. When my lease came up just a year ago on a Mercedes Diesel, a beautiful SUV that was two years old and I hardly ever used because I use shared ride services, the dealer called me up and said your lease is coming up, and ‘I’ve got a brand new car you’re going to love’ and I said ‘I’m going to pass. I’m going to drive this puppy back to you and wave goodbye.'”
Now that he doesn’t own his Mercedes any more, O’Leary said he uses his phone to call Uber or Lyft and they take him around the city. “I save a fortune,” he said. “I feel good about it. I hate cars. Even if you use a car everyday to get to work, it’s still cheaper to use a shared ride service because you can choose the level of luxury you want.”
Watch the Kevin O’Leary video on why he says you shouldn’t buy a car:
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