Cars were never a good investment, and driving a new one off the lot will cost you 20% (minimum). I'm quite a bit older than most HNers but have driven reasonably good used cars for years. And now my two college-aged kids have chosen cars they thought were cool ... a 1971 VW Super-Beetle and a 1991 Toyota MR2. These cars are both far more cost-effective than a new car ... the key is to pick one that was well maintained! I honestly don't know how the car companies can justify a price that is 1/4 the cost of a house (in many areas).
Houses on the other hand have always been held up as an investment, but I think the millenial's have been affected by witnessing the housing melt-down. Now is actually a good time to get into a mortgage (in many areas), but many people will wait because they don't want to see their investment decline. You read stories about the people who are underwater on their mortgage, but you never hear about people like me who bought a house they could afford, made payments and improvements and even with the collapse of the housing bubble, my investment is worth twice what I've put into it.
But younger people view houses and cars as tools and I can honestly applaud that view ... neither will bring you happiness by themselves.
Houses on the other hand have always been held up as an investment, but I think the millenial's have been affected by witnessing the housing melt-down. Now is actually a good time to get into a mortgage (in many areas), but many people will wait because they don't want to see their investment decline. You read stories about the people who are underwater on their mortgage, but you never hear about people like me who bought a house they could afford, made payments and improvements and even with the collapse of the housing bubble, my investment is worth twice what I've put into it.
But younger people view houses and cars as tools and I can honestly applaud that view ... neither will bring you happiness by themselves.