Why should you think hard before buying a car?

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A few years back, a very dear friend had fondly named her red car – ‘Ms. Polo Pandey’. Her love for the car was phenomenal. It wasn’t just her. Everyone loves their wheels, almost as if their dreams are made of just cars.

Times have changed for many of us. We are wiser with age and experience. Habits have changed so much. The millennial wave has caught up, and we are talking experiences more than possessions. We are trading big purchases in favor of Living-Your-Now. A car too, is a hefty buy that can rob bank balance very easily – and one of the reasons, millennials are not big fans of owning a car.

Momeys, whether you think the millennial way or not, but there’s serious thinking required before buying a car. Living in a metropolis (I live in Mumbai), the thrill of driving one’s car can easily give way to backaches and headaches. These are a few things I remind myself, every time I have pangs to get behind some big wheels.

  1.  It is a depreciating asset: A car is a consumable and the minute you have driven it out of the showroom, its value has depreciated. No matter how well maintained is the car, it loses value rapidly. So, don’t bank a lot on the resale value.
  2. Expensive financing:Car loans are expensive unsecured loans, and they don’t get any tax rebates either. A hefty EMI can be a real burden. If you are in a situation that driving your car is the only option for your mobility, then keep your loans to least possible. You could opt for a smaller car and pay up maximum available cash as down payment.
  3. Cabs are convenient:For occasional travelling, consider cabs. I have done the math for myself and found that using cabs for all my travel will cost me around Rs. 10000 per month, which is still lower than the EMI I would pay.
  4. Servicing & Maintenance:It’s never a happy situation paying up fat bills at the servicing center. Every time a servicing is due, don’t we feel it’s too soon?
  5. Traffic sucks:Getting anywhere by road is a test of patience in over-crowded metros. Add to that, nagging health issues that come with long hours of driving. Having a driver comes with added costs. From my experience of keeping a driver, I had to pay overtime to him every single day over and above his salary. To avoid getting stuck in traffic, I would have to start early and leave office late.
  6. Finding Parking is a nuisance:Driving towards city center for a meeting? You must wish good luck to yourself with finding parking. Do you also feel parking charges are getting exorbitant these days? It is one of the reasons cabs are a lot more convenient I feel.

Everything has its pros & cons, and each one of us is in a different situation. All I can say is assess your situation and do think hard before buying a car. A little mind over matter can make you laugh to the bank.

Image credit: <a href=”https://www.freepik.com/free-photo/woman-holding-a-red-toy-car-with-blurred-background_909097.htm”>Designed by Freepik</a>

 

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