“If you’re not financially free, do not attempt to buy a new car. Zero mileage? What for?” This was the blunt opening to a TikTok video by financial advisor Mwathan Njoroge, who minced no words in explaining why buying a brand-new vehicle might be the worst money move you could make.
In his viral clip, Njoroge laid down seven brutally honest reasons why he thinks purchasing a new car is financially reckless, especially if you’re still hustling toward financial freedom.
“Depreciation hits instantly. The moment you drive that car out of the showroom, you lose 15% to 30% of its value. So what is it for?” he questioned.
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Beyond depreciation, he pointed to the higher insurance premiums slapped on new cars, calling it an unnecessary financial burden.
“So mbona unatupa pesa?” he asked, highlighting how people throw money into liabilities disguised as luxuries.
Njoroge also urged Kenyans to explore the used car market, where three-to five-year-old models offer the same function at half the price of brand new units.
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“Why pay more when the purpose of a car is to move you from point A to B?”
He added that money locked in a new car could instead be used to generate income through investments like government securities. To him, the obsession with new cars is less about logic and more about emotional spending, societal pressure, and ego.
“Many people buy new cars because of emotions. And sometimes you’re paying more just because the car has a feature you’ll never use. Why spend so much on that?
Disclaimer: Mwatha Njoroge’s advice is not against car ownership in general. His message specifically targets individuals who are still financially unstable and may not be in a position to afford the long-term costs associated with buying a brand-new car.
Cars and tight budgets
The warnings don’t stop with Njoroge. YouTuber and financial educator Good Joseph recently weighed in on the car ownership debate, targeting anyone earning a monthly salary of Sh 100,000 or less.
In a separate video, Joseph cited a couple earning Sh 90,000 who were forced to resell their car after it wiped out their savings.
“After analyzing their expenditure, we concluded that they should not have purchased their car,” he said.
He broke down the numbers: A monthly car loan repayment of around Sh 30,000, rent and household expenses taking another Sh 40,000, and on top of that, fuel, maintenance, and other bills.
“Be careful, keen, and cautious,” he warned. “Don’t rush to buy a car on loan only to have it repossessed.”
Experts agree that unless the car is being used for income-generating activities, it remains a fast-depreciating liability. Unlike land, which appreciates, a car’s value plummets—and with time, this could trap the owner in negative equity.
Emotional spending, trap of impressing others
The same pressure to “look successful” often leads people to overspend, not just on cars, but on weddings and other socially pressured milestones. In yet another video, Good Joseph advised viewers to exit WhatsApp groups raising money for couples’ weddings if their own finances were shaky.
“You can have a wedding, but not when your finances are in shambles. If you can’t pay your bills, don’t fundraise for a party.”
His views stirred debate, but he stood firm: financial stability first, fanfare second. Others, like Britam CEO Tom Gitogo, echoed a similar message, urging Kenyans to avoid unnecessary debts driven by societal expectations.
“Society taught us that every villager is your responsibility. But in truth, they are not.”
