Cars make it easy to go to different places. They are not necessarily sound investments, but they provide advantages and convenience that justify their purchase. They also serve as status symbols. However, buying a car should entail careful decision making. Your lifestyle changes the moment you become a car owner.
Are you ready for the expenses?
The first question you need to ask yourself is about your preparedness for the many expenses that come with the vehicle. Do you have enough funds to buy a car in cash, or will you resort to a car loan or financing? It’s okay if you can pay the vehicle in full on the day you get it. However, if you have to take a loan for it, you need to make sure you are ready for the monthly payment of the loan amortization in three or more years.
The car sales specialists at youngautomotive.com say that the prices of cars purchased through loans or financing are around 10% more than the cash price. They get higher when the loan obtained is for a longer term. For the loans, the average amount that car buyers pay ranges from $500 to $600. The monthly payment can be lowered by extending the loan term. Buyers need to prepare to pay these amounts on a regular basis for several years.
Aside from the purchase costs, owning a car also means paying for fuel. For sedans, the cost can go higher than $9,000 per year. In addition to the fuel cost, there are also expenses for the maintenance and parking. There are also registration fees, taxes, toll payments, and the depreciation cost.
In other words, the costs of buying a car are beyond the price of the vehicle. If you don’t have enough regular income to address the recurring expenses, it’s better to hold off on that car purchase.
Do you really need it?
Arguably, you can only say you need a car if you will be using it regularly and you have no other convenient mode of transportation for your daily travels. Otherwise, it is better to commute or rent an automobile whenever you need it. If you barely use a car once a week, it is advisable to go for car rental. Also, if you live in a place where you tend to get stuck in traffic for long hours, buying a car is not a good idea.
Car rentals don’t come with recurring expenses. You also don’t need to pay for the registration, maintenance, tune-up, or repairs of the unit. There’s no need to build a garage for it. It can be a more convenient option compared to buying your own vehicle. You can even switch to different car models every time you please.
The point here is not to discourage car buyers from purchasing a vehicle. It is about being mindful of buying decisions. If you really need one and you are ready for the expenses, it’s not difficult to find a nearby car dealer. You can even go to a pre-owned dealership, which can offer lower prices.