When should I buy a car?
If you live in the UK the price of a car is not a big deal as there are so many cars for reasonable prices.
But the problem is the maintenance and insurance costs.
I have seen many people fall into the trap of cheap car prices. This is specially important if you have migrated from a country where car prices are very high (some countries have crazy duties and taxes on car prices. I know countries that have 300% duty on cars).
When you migrate from such a country to a country like UK your internal desires start putting extra pressure on you, to get that dream come too while you can afford it…
But what’s the catch…
The hidden truth is that even though cars can have a lower price tag their maintenance costs will never ever go low.
That is a universal truth, This is why:
Car prices can go lower, because the technologies improve everyday and increasing competition between car manufacturers make them lower prices even more.
But maintenance costs will never go low, because many people and their families make a living out of car maintenance businesses. From insurance guys to garages.
Therefore the to make a financially viable decision you need to consider Maintenance costs very thoroughly.
When should I delay buying a car:
Despite the common (ridiculous) perception all public transport services in the UK are very good and reliable so if you are a single person it is very doubtful if you say that you NEED a car.
And you can hire a taxi when you want to go somewhere that’s not serviced by public transportation and also to travel during unusual times.
When should you buy a car
The answer is super simple. MATHEMATICS!
1 Ask your friends who already owns cars how much it costs them. Be Careful not to ask friends who has already fallen into the trap of buying a car too soon. Because such friends will always JUSTIFY their decision and may be misleading.
So you are better off as many friends as you can and find out general costs.
2 Then calculate how much it costs for you for travelling currently (without a car).
If the costs of a car is only marginally more than the costs of not having a car then GO FOR IT – BUY A CAR.
The Convenience Factor
The reason why you should still go for a car even if it’s marginally more expensive is because a car brings a lot of convenience and quality to your life so it’s worth the (little) extra cost.
What Car Should You Buy
It purely depends on how rich you are and if you have read this article to this line then first, thank you and second it means that you are like me, not a millionaire, just yet. So I would strongly recommend go for a second hand car.
New or Used?
There are so many marketing traps that try to give you the impression that a new car is the best bet. There are so many tricky financial solutions that can make you feel that you can drive a car that would usually be out of your financial limits.
The TRUTH is this decision lies on how much you can fool yourself. Do you really think you are rich enough to buy that brand new Merc without going super poor in 5 years? DECIDING IT IS UP TO YOU.
How to HUNT for a GOOD QUALITY second-hand Car?
Simply think smart and out of the box.
What is a good car? A good car is a car that is reliable, fuel efficient, and has some performance.
You have decided to have a better financial future, so what of above three are you going to compromise on?
The reason for compromise is that the cars that are good in all three categories are VERY EXPENSIVE because everyone wants them.
HOW TO GET THE BETTER HAND FOR LESS?
COMPROMISE ON FUEL EFFICIENCY FOR RELIABILITY. WHY?
Because it costs a lot more to maintain or repair a car than the little money you save on fuel. This is FALSE ECONOMY (thinking you are saving on fuel while wasting a lot more on repairs).
Most people in this era are CRAZY about fuel efficiency so they BLINDLY reject any car that has a bigger engine.
But the FACT is: Bigger engines don’t consume that much more fuel than a car with a smaller engine. BUT MOST PEOPLE DON’T SEE THIS. This is where you can benefit.
Because of this reason many people don’t buy cars with big engines. This give great points for us because:
- These cars don’t get a lot of hands on them and most of the time their first owners are very rich people (because big cars are very expensive when they are brand new). This means these cars are very well maintained.
- Because many people reject these cars, these beauties lose their price dramatically with the age.
- Their current owners are desperate to get rid of them as they are worried about the price fall. This gives you extra maneuverability while negotiating.
A real life example:
At the time of writing, the price of a Heavily Used BMW 3 series car with a 1.6 litre engine costs a lot more than a less used 2.5 litre car that comes with all luxuries like leather seats, etc…
Finally, NEVER RUSH to buy a car!
Financial experts (the real ones, not car salespeople who pretend to know-it-all) say that delayed gratification is a must have if you want to succeed with your finances.
Therefore avoid circumstances where people try to get you to make very quick decisions.
It’s always best to lose a good looking (but not sure) deal than getting into a bad deal because after money has left your hands then it’s always too late.