# Why You Should NEVER Buy a New Car (It’s Not The Price!) Source: https://www.youtube.com/watch?v=P52rOjieK60 Recap page: https://rapidrecap.app/video/P52rOjieK60 Generated: 2026-03-10T17:03:55.967+00:00 --- ## Quick Overview The primary reason to never buy a new car is not the initial price or depreciation, but the fact that modern vehicles collect extensive data on your driving habits, which insurance companies can access to adjust rates, and manufacturers can use to exert control, such as forcing vehicles to stop operating after a certain age or limiting service to authorized dealers. **Key Points:** - New cars, especially modern ones, collect data on driving habits (speed, braking, routes) that insurance companies can use to price policies, potentially leading to higher rates for risky drivers. - Manufacturers are trending towards making cars that require connectivity (Wi-Fi/cellular) for basic functions, potentially allowing them to remotely disable features or enforce age limits on vehicle operation. - If a car is modified or serviced outside an authorized dealer network (like a Ferrari or Bugatti), the manufacturer may void the warranty, regardless of whether the modification caused the issue. - The speaker suggests buying a 3-5 year old vehicle to avoid the massive initial depreciation and the immediate data collection/control mechanisms built into brand-new models. - The speaker references an example where a driver, after getting into an accident not their fault, wished they had dashcam evidence to prove innocence to insurance companies. - The speaker promotes Function Health, a service that provides access to over 100 lab tests for tracking biomarkers related to heart, thyroid, and metabolic health, suggesting this data tracking is superior to car data tracking. ![Screenshot at 00:04: The speaker identifies a brand new car purchase as the 'dumbest thing you could buy' due to hidden costs beyond price, setting up the core argument about data collection and control.](https://ss.rapidrecap.app/screens/P52rOjieK60/00-00-04.jpg) **Context:** The video argues against purchasing new vehicles by highlighting hidden costs and risks beyond mere financial depreciation. The speaker focuses heavily on the loss of privacy and ownership control inherent in modern, connected cars, suggesting that manufacturers and insurance companies are leveraging data collection to penalize drivers and restrict independent repair rights, pushing consumers toward a future where car ownership is more like a subscription service. ## Detailed Analysis The speaker asserts that the worst part of buying a new car is not the immediate depreciation, exemplified by the Mercedes-Benz EQS losing 47.8% of its value in one year, but the data collection capabilities. New cars collect driving data—speed, routes, harsh braking—which insurance companies can use to price premiums, potentially penalizing aggressive drivers. Furthermore, manufacturers are making cars increasingly reliant on software updates and connectivity (requiring Wi-Fi/cellular access), which can lead to manufacturers or dealers controlling service access, voiding warranties if third-party repairs are made (as seen in a Ferrari example), or even rendering older cars unusable if they stop supporting them. The speaker advises that buying a 3-5 year old reliable car is a better financial move to avoid rapid depreciation and this creeping loss of control. He contrasts this concern about car data with the benefits of tracking personal health data using Function Health, which he praises for providing actionable insights across over 100 biomarkers, including cardiovascular and thyroid markers, which he found personally beneficial. ### The Hidden Cost of New Cars - Massive depreciation (Mercedes-Benz EQS lost 47.8% value in one year) - Data collection that influences insurance rates - Manufacturers gaining control over vehicle operation and repair via software updates ### Manufacturer Control Tactics - Warranty voidance if third-party maintenance is performed (citing Ferrari example) - Forcing service through dealerships to maintain profit margins - Potential for vehicles to be disabled if they are too old or lack connectivity ### The Better Alternative - Purchase a 3-5 year old car to avoid initial depreciation and reduce exposure to mandatory data tracking and restrictive service requirements ### The Value of Personal Data Tracking (Sponsor Plug) - Function Health provides access to 100+ lab tests covering heart, metabolic, and thyroid health, offering actionable insights to track personal well-being over time, which the speaker finds immensely helpful. ![Screenshot at 00:07: A screenshot showing the depreciation statistic for the Mercedes-Benz EQS: -47.8% after one year.](https://ss.rapidrecap.app/screens/P52rOjieK60/00-00-07.jpg) ![Screenshot at 00:12: A CBS News headline illustrating the broader context of financial stress in car ownership: "Vehicle repossessions surging at pace on par with Great Recession."](https://ss.rapidrecap.app/screens/P52rOjieK60/00-00-12.jpg) ![Screenshot at 01:25: A graphic detailing the depreciation of a 2022 Tesla Model S: -61.53% depreciation, losing $74,132 in value.](https://ss.rapidrecap.app/screens/P52rOjieK60/00-01-25.jpg) ![Screenshot at 03:55: A dashcam view showing a driver in a 1948 Willys Jeep CJ-2A, contrasting with modern connected vehicles, implying older cars offer more control.](https://ss.rapidrecap.app/screens/P52rOjieK60/00-03-55.jpg)