Agreed, but the quote was from when you are already filthy rich. But it applies to many people in this country, since getting a new car every 4 years is so popular.
Personally I'm a fan of finding a good deal on a used car, buying it, driving it for 1-2 years, and then selling it for the same amount I paid for it. Pretty much the only cost this way is a) insurance(which you can save a few extra bucks by getting only liability) b) gas c) 2-3 oil changes.
And since you are owning the car for a short period, you won't get hit by any costly repairs.
The costs of buying and selling the car, as well as adjusting to a new car, are non-trivial for most people.
It's another case of doing more work to make more money. The question should be, "Is doing a better investment of time and effort than simply buying a newer car and keeping it longer?"
Personally I'm a fan of finding a good deal on a used car, buying it, driving it for 1-2 years, and then selling it for the same amount I paid for it. Pretty much the only cost this way is a) insurance(which you can save a few extra bucks by getting only liability) b) gas c) 2-3 oil changes.
And since you are owning the car for a short period, you won't get hit by any costly repairs.