Think Very Carefully Before Buying A Car. It’ll Cost You.
The vast majority of people want to drive a car. Personal motor vehicles provide you with a sense of freedom and allow you to do things that would otherwise be difficult, like collecting your groceries from the store.
But before you dive in and buy the vehicle of your dreams, it is critical to think about the effect that it might have on your finances. Running a two-tonne lump of metal that can zip from location to location isn’t cheap. It implies an enormous cost. Drivers, therefore, need to make sure that it is worth it for them.
Think of all the costs associated with driving:
- The cost of the car itself
- The interest fees that you pay on the loan
- Insurance costs
- Tax, including road tax and the additional duties on fuel
- Filling up the tank
- Paying for maintenance of the vehicle to ensure that it continues to work
- The costs of injury
The average person spends somewhere between $5,000 and $10,000 per year on costs associated with their vehicle, translating to around three months’ work on an average salary.
You need to be sure, therefore, that you think very carefully before buying a car. It will cost you unless you make the right decision.
Only Buy A Car If You Do Not Have Alternatives
If you live in the center of a big city close to your work, you probably don’t need to buy a car outright. Instead, you can take public transport or get to places on foot.
If you live in a rural location, you probably don’t have much of a choice about whether you own a vehicle or not. Going without one would leave you marooned and utterly dependent on taxis and delivery services.
Think carefully about whether you really need a car. If you don’t, then you could save a lot of money.
Consider The Risks
Owning a car isn’t just about the direct costs of the vehicle. It is also about the expected value of risks.
Car accidents are an everyday event. Insurance companies typically offer $50,000 coverage for injuries that are permanent, indicating the severity of accidents.
Insurance, however, doesn’t provide you with full insight into the expected costs of driving. Sure – it covers the financial cost of medical care and lost wages, but what about the quality of your life? Isn’t living injury-free priceless?
Drivers need to consider this intangible cost of driving before parting with their money. Going out on the roads could result in a severe injury that never goes away.
Invest In Safety Features Over Performance
Many of us would like to drive high-performance cars. But the returns to horsepower are literally zero. The bigger the engine, the higher the depreciation, and the more money you lose.
Safety equipment, by contrast, has a payoff. If you do decide you need to drive a car, it can pay dividends to have the best onboard technology to prevent injury. When you avoid hurting yourself, you remove all of the medical costs associated with recovery.