In many places, a car is necessary to get from point A to point B. But self-made millionaire and bestselling author David Bach says buying new is never worth the price.
"Nothing you will do in your lifetime, realistically, will waste more money than buying a new car," he tells CNBC Make It. "It's the single worst financial decision millennials will ever make."
The minute you drive off the lot, your vehicle begins to depreciate in value, Bach explains. By the end of the first year, that decrease is typically 20 to 30 percent and, five years down the road, your car can have lost 60 percent or more of its initial value.
Instead, Bach recommends buying something that's coming off a two- to three-year lease, because it "is almost brand new and you can buy it at that 30 percent discount." A car coming off lease is often in very good condition and doesn't have many miles on it but, because it's not pristine, you can buy it for a fraction of the price.