If you’re wondering how to afford housing, healthcare, and all the essentials in life, you’re probably happy to hear about new financial tips that can help you spend less and save more. So here’s one of the best money hacks you’ll ever hear: You should never, ever buy a new car.

This isn’t just true because new cars are getting incredibly expensive, with average prices approaching $50,000 and only 8% of new cars on the market priced under $30,000. Buying a new car is simply a terrible financial decision on all counts. You’ll almost always be better off buying a used car of relatively recent vintage, and you’ll actually be better off without a car if you can manage it. Here’s why.

First of all, a new car loses almost a third of its value within the first year, no matter how well you maintain it. You can change the oil monthly and spend hours washing and waxing that baby and it will still be worth 20-30% less after twelve months. That means if you spend $50,000 on a new vehicle today, it will be worth about $35,000 next year.

And depreciation never ends. After the first year, your car will lose about 15-18% of its value each year, for a total depreciation of about 60% after five years. So if you buy a 2024 model this year for $50,000, it will only be worth $20,000 in 2029. If someone told you to invest in something else that was guaranteed to lose 60% of its value, you’d walk away.