<prompt> Human: Yes as soon as you drive it off the lot, it takes a huge depreciation hit and loses value - but should your own personal car that you want to use for the next 10-15 years really be viewed as an investment? Who cares if it has no useful life if you plan on running it into the ground anyways.Dont used cars have more baggage? Sellers hiding issues with the car? I dont trust craigslist and used car salesmen may just care about commissions.My situation: 23 driving a 2001 Honda Civic with 105k miles and 0 issues it was my dads. Why would I need a new car then? I love cars and Im bored of mine and I want something with all the new bells and whistles. I make 52,000, monthly expenses are around 1,200 including rent, and I contribute 15 to my Roth 401k. I really want a 2016 Accord Sport or Civic Coupe. And I can build my credit by buying a new car. Can I do this, or is it a very unwise financial decision? Hondas are very reliable. Edit: I have 11k saved up and dont spend a lot outside of my expenses. 0 debt.  <response>: but should your own personal car that you want to use for the next 10-15 years really be viewed as an investment? Absolutely not. Its a depreciating asset. All cars except classic cars are depreciating assets. Even they arent really an investment so much as speculation. When you view it this way its very easy to make the argument that a frugal person would prefer that someone else suffer the largest share of the depreciation.Personally, Ill likely never do it, but Im not 23 and didnt have the advantages you have in that youve got a head start on savings. But if I were 23 the only way I could justify it is if I got a 0 interest rate or damn close so I could say Im buying it with free money. I love cars and Im bored of mineAnd this is the reason most people part with modern cars. It isnt because they quickly become unmaintainable because most dont. IMO this only becomes a problem when it starts to become a facet of lifestyle creep. Five years from now, youll likely become bored with what you bought today and youll think to yourself: I make 20 more than I did when I bought this. I should really start considering that new 60K BMW I like so much because Ive worked hard and I love cars. If I keep the economy car I bought new a few years ago much longer then its resale value will plummet so it really is the frugal choice to shift it now and get into the car I really want.New cars are largely a lifestyle choice and its kind of binary. You either decide that its part of life that you can afford and should avail yourself of or you decide it isnt. I dont like new cars, but I love new car buyers because it presents me with many great used car choices. If you decide to do it, its not the end of the world financially. However when you finally reach the point that you realize that buying a new cars could mean a couple extra years of waiting for retirement the mental calculus looks a little different.Bear in mind, you dont just adopt a car payment. Your insurance will go up, possibly a lot more than you are imagining. If you live in a state where registration is based on value at all, then that will also go up. Youll also likely start worrying most about every ding and scratch. 