What do you think of your car? Are you embarrassed by it? Do you absolutely love it? Or, is it just an okay car that gets you around? Maybe it has always been like this, but it seems that in the recent years people are very conscious about what they are driving. Somehow they think that if they drive something that is incredibly nice, others will respect them more and they will ultimately be happier because of the beautiful car they own.
Many times the cars that people choose to drive are just keeping them broke. Is your car keeping you broke?
The Excuses People Use to Buy a New Car
When people get the itch to buy something new, they start to rationalize the purchase early on. Typically, they know that purchasing a brand new vehicle is a bad idea, but because they really want it they need to trick themselves into believing that it would be the logical choice for them. When these individuals begin to start thinking of reasons why they should buy a new vehicle, this list is typically what they come up with:
1) I need a vehicle that is safe
Somehow people get the notion that the current car they are driving is not safe. If your car is less than 10 years old, chances are that it is perfectly safe. If, however, you own a 1960 Chevy Corvair, then yes, you should probably upgrade to a safer car (but it still doesn’t have to be brand new).
2) If I buy a new car, I will get better gas mileage
This might be true, but instead of dropping $30,000 to save $500 a year, why not buy a 2002 Honda Civic that gets 35 miles per gallon and will only cost you $3,500? Buying that new car to save on gas just doesn’t make all that much sense in this case either.
3) I will drive this new car forever
Even though people don’t typically drive a car for more than five years, they somehow get themselves convinced that they will get their money’s worth out of a new car because they will drive it until it simply won’t drive anymore. This hardly ever happens. Stop kidding yourself. After a couple of years you will get bored with your car and will start drooling over the new ones. It is best to buy a used car so that you don’t have to feel bad about selling it and buying something different after a couple of years.
4) A new car is more reliable
Some cars come off of the line and are reliable, but there are always those new cars are mechanically worse than many of the used Hondas and Toyotas out there. The problem with buying a new vehicle is you just don’t know if your car will be one of the reliable ones or one of the lemons. If, however, you purchase a used car, you can read up on the many years of reliability results.
5) The payments are cheap and affordable
Do you realize why the payments are so cheap for new cars? It’s because they extend the loan for 7 years! After all of those years, you will not only overpay on your vehicle because you bought it brand new (and it is depreciating quickly), but you will also have paid for thousands of dollars in interest as well! Never buy a car on payments. Pay cash whenever you can.
What Is Your Car Actually Costing You?
There are some luxury vehicles out there that are incredibly nice inside and out. My favorite is the Infiniti QX70 – an SUV with sleek lines and an interior from the future. I drool pretty much every time I see it. But, I have easily convinced myself never to buy this vehicle because of what it would cost me in the future.
Brand new luxury vehicles can easily cost you $45,000 (or more, but we’ll stick with this amount since it is practical). When you could buy a domestic vehicle that’s just a few years old for $10,000, I would deduce that you are overspending on your ride by $35,000. Do you know what a $35,000 investment would grow into after 35 years?
That’s right. Your spontaneous decision to buy an Infiniti instead of a Chevy could end up costing you one million dollars over the course of your lifetime. So do you think that luxury vehicle is still worth it? I would say absolutely not!
Have you ever purchased a new vehicle? How much do you figure it cost you over a lifetime?