Finance Globe

U.S. financial and economic topics from several finance writers.
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To Buy a Car or not to Buy a Car, that is the Question

Are you the type of person who gets excited about the thought of buying a new car? Or are you the type who avoids this at all costs?

No matter which group you fit into, there will come a time when you need to answer this very important question: do you need to buy a car or can you wait longer to do so?

This will depend largely on your particular situation. Here are three details to focus on as you attempt to answer this question:

1. Is your current vehicle in good working condition? If your car is always breaking down, leaving you stranded, there is no better time than now to consider making a change.

On the other hand, if your vehicle is still reliable, it may be in your best interest to hold onto it, getting as many miles out of it as possible.

2. What is your current financial situation as far as your vehicle is concerned? Do you have a car loan? Is your vehicle paid off?

If you don’t have a monthly payment, buying a new car could be a mistake, as this will change your financial situation.

If your vehicle is not paid off, you have to decide how trading it in will alter your finances. Can you lower your payment? Will your payment increase?

3. Functionality. Some people want to keep their current vehicle, but find that they are unable to do so because it is no longer functional. For example, if you have a small compact but a growing family, you may have to make a change sooner rather than later.

It may be tempting to buy a car on a whim, but this decision could lead to buyer’s remorse. Before you do anything, you should consider the pros and cons of both options. This typically means answering a variety of questions, some of which are detailed above.
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Tuesday, 20 August 2019

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