Have you thought about buying a car lately?
Buying a car is a very important purchase, not one that you make to impress others. I’m back with another weekend rant and today I want to address the topic of buying a car that will impress others. Since today is a rant I will not share tips for buying a car but you should expect a post sometime during the week looking at the true cost of purchasing a car.
Next to your home, a car is arguably the second most important purchase that you can make. The problem that many college graduates face is that they would rather buy a fancy car before they put a down payment on a home. That’s none of my business and I won’t go in too much detail on the whole home vs automobile argument. I just want to present my theory or rant about buying a car:
Do you really need a car?
I know taking the bus is lame but is saving thousands of dollars a year lame? I have driven to school many times and the parking for one day alone equals the cost of 3 days of public transportation. Sure owning a car makes the trek to school or work a lot more convenient but the bus can get you there with plenty of money left in your pocket.
Consider buying a used car. A new car is great but since you’re reading Studenomics chances are that you’re either a college student or recent college graduate, which usually means that your disposable income is not as high as you would like it to be. You don’t need a brand new Hummer or BMW to go around, buying a used car will get you around while saving lots of money.
Anybody that remotely cares about you won’t care about what you drive. Seriously guys if your girlfriend doesn’t want to get into your used Honda Civic then do you really need a girlfriend like that? If you’re a single guy then you have better ways of doubling your dating than by buying a fancy new car. I have seen so many of my friends buy fancy new cars thinking it would be the coolest thing but not realizing that the car purchase would become a financial disaster.
Pay for value not name brand. Don’t get me wrong I definitely see the value in buying a brand new car but do you have to drop $40,000 (monthly financing) for a BMW? You could purchase a quality brand new Honda or Nissan for $20,000 and ride the car for well over a decade.
Buying a car is a very important purchase that requires plenty of research and should be done to meet your needs, not used as a competition to see who can buy the nicest car between your group of friends.