Someone asked me: “I’ve saved up 200,000 to 300,000 yuan. Should I buy a car in that range?”
This kind of question is extremely personal. I can only give you my take.
I am very biased. I classify cars as essentially optional. If you can avoid buying one, do it. If you absolutely must buy one, never spend more than one‑tenth of your savings. And I mean your cash savings, not your fixed assets.
If you have 2 million yuan, don’t buy a car over 200,000. If you have 1 million, don’t buy a car over 100,000. If you have less than 1 million, don’t buy a car at all. The less money you have, the harder you worked for it, and the more painful it is to waste it on a depreciating machine.
Here are six reasons why.
- Almost no one’s job requires a car for status or credibility. Maybe 1% of careers benefit from a nice car. For the other 99%, it’s pure ego. You are not that 1%. Be honest.
- Liking cars doesn’t make buying one a smart move. Yes, you can love cars. But loving cars and buying a car is one of the most expensive ways to indulge a hobby. You’re paying for a lump of metal that loses value every single day. You could rent a sports car for a weekend for the cost of one month’s depreciation. That’s a much better deal.
- Cars don’t earn you respect, admiration, or success after 35. Young people think a nice car projects success. The older you get, the more you realize no one cares. What people actually respect is your ability, your health, your relationships, your peace of mind. A car is a terrible proxy for any of that. By the time you figure this out, you’ve already burned your hard‑earned savings.
- Depreciation is brutal. A new car loses 15–25% of its value the moment you drive it off the lot. After five years, it’s worth half. And that’s on a high absolute value. If you buy a 200,000 yuan car, you lose 100,000 yuan in five years. That’s more than many people save in a year. Plus, insurance, maintenance, gas, parking, tolls. The total cost of ownership is far higher than the purchase price.
- Turning money into a car is easy. Turning a car back into money is hell. Once you buy that car, it’s a liability. Selling it second‑hand is a hassle; you get pennies on the dollar. Cash gives you options. A car gives you a monthly bill and a piece of metal that sits in traffic.
- Car ads sell a fantasy, not reality. They show you driving along a coastal highway, wind in your hair, with a beautiful sunset and zero traffic. That’s not your life. After the first month, the only thing the car does is get you from point A to point B. And more often than not, public transit, a bike, or a ride‑hailing app is cheaper and more convenient. You’ll deal with traffic, parking nightmares, insurance claims, and the anxiety of scratches. The fantasy fades fast.
Finally, the most important thing: having the ability to own a car is what matters, not actually owning one. If you have the money, you have the freedom. You can rent one when you need it, take a taxi when you’re tired, or bike when the weather is nice. That’s real flexibility. Buying a car locks you into a lifestyle you might not even want.
So ask yourself: do you need a car, or do you need the illusion of success? The answer will save you a lot of money.