It is nice to buy a new thing. The new thing is making the change in our life. Things make us happier in our life. Especially if that thing is really new, nobody even touched it. Having a new car is a great thing. Our old car became boring. New car makes us younger. Friends and neighbor envy us on our new car. Do you want a new car? Of course that you want, who does not. But buying a new car requires smart thinking. There are some questions that need to be answered.
Dou You Need a New Car?
The question seems obvious, but the answer is not. The „need“ is the relative thing. We have many needs in our life. The question is: are those needs real functional need, or our need is based on our perception? Marketing can be very aggressive and deceptive. They assure you that you need a new car, even if you have a usable car already. Designers try very hard to build a new car every year or two. Our mind is influenced with these facts and we tend to believe that we need a new car, even if the need is not that real. Answer on this question requires thorough analysis of your current situation.
Can You Afford a New Car?
A new car cost a many. A lot of money. Assessment about affordability should be honest. If you can get a new car only with the use of loan or leasing, than obviously you cannot afford it. If you can really afford it, than you do not need the financial instruments to support you. Even more, these financial instruments ( loans, leasing ) cost you extra, due to interest. At least you should have bigger part of the funds at your disposal and borrow the smaller part. Banks and marketing experts will try to assure you that if you finance your new car from loan or lease that you are urban individual that use modern payment methods. In reality they only want to take you extra money.
Can You Afford Car Depreciation Loss?
Buying the new car is a serious thing, and requires awareness of all fact. Considerable factor in buying the new car is the depreciation. Depreciation represents the loss of the value of the car through time. This loss has a devastating rate for a new car in first 3years...
This calculation is based on whatcar.com calculator. If you consider a new car be prepared to lose half of the value within first 4 year.
Is the New Car Your Only Priority in the Near Future?
Do you have other financial obligation, other than buying a car? What about house, healthcare, children, scholarships, payment of loans and mortgages. Is the car your first priority?
If the answers are yes for all these questions, than you should buy a new car. If you need a new car, if you can afford it, if you can afford devaluation and you have no better idea what to do with your money, than you should buy it. Buy the new car and enjoy it.
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