There’s a familiar pattern in personal finance: we justify a big, flashy purchase by pointing to long-term savings. It sounds responsible, even noble. Buy a $45,000 electric vehicle, and over the years, you’ll save hundreds—maybe thousands—on gas. No more oil changes. Fewer moving parts. Lower emissions. It all feels like a smart, forward-thinking decision.
But here’s the thing: the math doesn’t care how good your intentions are.
If someone is trying to save a couple hundred bucks a month on gas by going into five- or six-figure debt for a new car, they’ve already lost the plot.
Depreciation is undefeated.
Cars are not assets in the way most people think. They don’t grow in value. They rust, age, break down, and get replaced. And new cars—EVs included—depreciate rapidly. The moment that shiny new ride leaves the dealership, it’s worth less. And over the next five years, it will likely lose at least half its value, regardless of how many dollars it saved at the pump.
Debt, on the other hand, compounds in the opposite direction. You’re paying interest on a depreciating item. It’s financial gravity working against you on two fronts. That’s not a plan; that’s a trap.
The illusion of “saving money” by spending it
The most dangerous financial phrase is “It’ll pay for itself.” That logic shows up everywhere—solar panels, luxury kitchen gadgets, timeshares, and, yes, electric cars.
But “saving money” only counts if you were going to spend that money anyway. If you weren’t going to buy a $45,000 car, then you’re not saving $200 a month—you’re spending $45,000 and convincing yourself it’s a bargain.
It’s like buying a $300 jacket because it’s 40% off. You didn’t save $120. You spent $180 you wouldn’t have otherwise spent.
Affordability isn’t about monthly payments
When people say, “I can afford it,” what they often mean is, “I can make the monthly payment.” But affordability isn’t a payment—it’s a lifestyle cost. It’s what gets sacrificed so that monthly payment can exist. Maybe that’s your emergency fund. Maybe it’s your ability to take a vacation. Maybe it’s peace of mind.
A better financial filter is asking: Would I buy this if I had to pay for it in full today? If the answer is no, then it probably isn’t a good idea.
The better play: buy less car and keep more control
There’s nothing wrong with electric cars. They’re the future. But the future doesn’t need to come at the expense of your financial stability today. A used hybrid. A well-maintained economy car. Heck, keeping your 10-year-old sedan for another few years. These are all decisions that may not feel as exciting—but they’ll give you options when you need them most.
Control over your money isn’t about chasing efficiency at the margins. It’s about avoiding big, irreversible mistakes.
And going into debt for a depreciating asset—even one that comes with good intentions—is still one of the most avoidable mistakes there is.
Because in the end, financial freedom isn’t built on the car you drive. It’s built on the decisions you don’t have to explain away.