 Good day, fellow investors! I recently bought a new second hand car and I want to explain in this video why buying second hand cars is financially so important in your life and how you can save millions, millions, yes millions, by buying second hand instead of new cars. This is my new car. Let me show you a little bit the car first and then we'll dig into the numbers and show you how you can really save millions. So I bought this car. It was six years now. It's already seven years old. Why did I buy this car? Because I like to drive comfortably. I have a family. I need space in the back. I don't like noises when I come back from a trip. I like to be rested so that I can do better stock market research and better videos and this was the car we picked because it fits perfectly what we need for the long travels we do. Just came back from a 3,000 kilometer ride in four days. That drives amazingly well. It looks really nice inside, clean, polished. There have been no issues with it and I had it closely checked. This is the key because you can really find five, six year old cars in great, almost mint condition. You just have to look and you just have to check them. So let's dig into the numbers. What's the difference between buying second hand cars and buying new cars? And that's a huge difference because the same car that I bought new costs about 60,000 euros. Mine, I paid 15. So I paid a quarter of the new value and I'm driving the same car that costed so much more just six years ago and that's a huge difference and that difference makes you rich. Let me show you the numbers. I'll take the numbers on an average car, not even my car because my car costs twice the average. I'll take the average new car price in the States is 40,000 and the average depreciation rates are 20% for the first year, 15% for every subsequent year. This means that the value of the 30,000 car is 24,000 after 12 months and 12.5,000 after five years. The new car owner loses about 3.5,000 per year. If you buy always five year old cars that are usually good cars, you pay about 12.5,000 and after five years you have 5.5,000 left in value. Thus you lose 1.4,000 per year. The difference is 2.1 per year and that's what makes you a millionaire 2.1 per year. So first you save the cash on buying a new car which means that you save 17,000 on buying a second hand car instead of a new car. Plus you add 2.1,000 to the savings on a yearly basis and let's say you do that over 35 years and you manage to get a nominal return of 10%, you get to 1.07 million after 35 years. If you keep doing that for 45 years you get to 2.8 million in a difference. Did I say more? So that smell of a new car, that powerful feeling of a new car, is it worth 2.8 million in your lifetime? Can you spend 2.8 million or a million in a different way? Can you retire 10, 15 years earlier by driving a nice second hand car? That's the question you have to give yourself an answer. I can't help. Some people prefer buying new cars but I consider that irrational if you don't have so much money that you don't care about where you spend it. If you have options when spending then buying a new car is an irrational thing to do, better buy a little bit older cars because you will save so much money and you will have so much money over for other things which might be more important than the smell of a new car. The point of this all is not buying new cars is that be really apply common sense and be rational with your finances. New cars, credit card debt, owning, renting a house, crazy student debt for some crazy schools and just such things, such simple things make the difference between being broke at 50 and being hugely wealthy at 50 and it doesn't cost really much, it's not to sacrifice. My car drives as good as any other car so that's really something you have to see especially if there are a lot of young, especially if there are a lot of young viewers watching, I really wanted to give the message to put these things into perspective. Not so much chase whether this stock will go up 10 or 15% in the next few months but really put these basics into perspective and you'll have a great wealthy life. Just to finish $2100 per year are not that much, $175 per month or $6 per day. $6 per day, the difference is millions in a lifetime. So think about those $6 and how really easy it is to get to somewhere over the long term. People usually want it now but if they just think over the long term everything in investing, in finances, in wealth, in success, in life, in business, in studies, everything changes if you just apply the long term. To finish with Anthony Robinson my favorite quote, people overestimate what they can do in a year but underestimate what can they do in 10 years. Thank you for watching, looking forward to your comments and I'll see you in the next video.