Orman recommends buying used cars because, unlike a home, a car will never increase in value. "The second you drive that car off the lot, it depreciates, 10 percent, 20 percent," she tells CNBC Make It. "Let somebody else get that depreciation."
She also recommends you not lease. "I personally think you should never, ever ever ever, lease a car, do you hear me?" she says. When you lease, you're spending lots of money each month but, in the end, you'll have nothing concrete to show for it.
If you don't have the cash to buy a car outright, Orman says it's perfectly fine to finance one, but make sure that you won't need to make payments for longer than three years. If you have to finance it for longer than that, then "you can't afford the car that you're going to buy."
And once you get a car you can afford, she says, keep it as long as you can, ideally for a decade or more. That's what rich people do, she says: "Most people I know who are really wealthy, they keep their cars five, 10, 15, 20 years." And that's what she does herself, too.
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Suze Orman: Don't ever lease a car