After purchasing a home, buying a car is one of the largest financial decisions that you can make. That’s why you should carefully consider whether or not purchasing a vehicle is the right choice for you. Here, we will take a look at the pros and cons of vehicle purchase. Also, we will take a look at some alternatives to buying a car.
Pros of Buying a Car
There are several compelling reasons to purchase a vehicle. Here’s a look at some of the top reasons to buy a car.
1). Provides the best control over your daily transportation
If you need to travel often, then purchasing a car is going to be your best option. First, you will not have to be reliant on the limitation of public transportation. Also, you can drive as often as you want. If your work commute happens to be longer than normal, then a vehicle purchase will also make sense.
2). You can resell or trade-in the vehicle after you are done with it
When you purchase a vehicle, you will also have the option of whether you want to trade it in for a different vehicle or sell the vehicle via a private sale. This allows you to recoup some of the cost of the vehicle purchase.
3). You can build your credit
If you are looking to purchase a home in the future, then purchasing a car first may be an important step. Demonstrating to a lender that you can keep up with car payments may increase your chances of getting approved for a home purchase.
Cons of Buying a Car
There are some reasons why you may not want to consider purchasing a car. Here’s a look at some of the cons of buying a car.
1). Purchasing a car can be expensive
The average price of a new car continues to move higher. In fact, the average purchase price of a new car in the United States is now $45,000, up from $40,000 in 2020. Even the price of used cars is rocketing up in price. In 2021, the average price for a used vehicle is $25,000. This is a $3,000 increase in average used car prices from 2020. For many people, purchasing a new car will be too much of a strain on one’s finances.
2). You will have to handle the vehicle’s maintenance costs
In addition to handling the vehicle’s monthly payments, there are additional costs to a vehicle. For one, you will have to pay for the vehicle’s insurance which is required by law. Other costs associated with a vehicle include fuel costs, maintenance costs, and out-of-warranty repair costs.
Types of Cars to Buy
When you are looking to buy a car, you will have three main options to choose from. Here’s a look at the types of cars that you can buy.
First, you can buy a new car. This will be your most expensive option. You should consider purchasing a new car if you intend to own the vehicle for a long period of time and you want to have the latest tech and safety features.
New car to consider 2021 Toyota Camry. If you are looking for a high-quality car at an affordable price, then consider a new Toyota Camry. The Camry is known for its high quality and it low cost of maintenance. Also, the Camry is quite popular and holds its value well.
If you want to get more vehicle for your money, or if you are simply on a budget, then you will want to consider purchasing a used car. If you look hard enough, you may still be able to find some quality used vehicles under $15,000 or even $10,000.
Used car to consider 2014 Toyota Camry. According to Kelly Blue Book, one of the best used cars to buy is the 2014 Toyota Camry. That’s because the Camry has excellent reliability and the XLE trim can be found at around $15,000.
3). Certified Pre-Owned (CPO)
Finally, you have the option to purchase Certified Pre-Owned or CPO vehicles. CPO vehicles are low mileage used vehicles that have passed a series of inspections and quality control checks. CPO vehicles are ideal if you are looking for a used vehicle that is less than 3 years old with less than 30,000 miles on the odometer.
CPO car to consider 2017 Audi A4. Kelly Blue Book recommends the 2017 Audi A4 as a top CPO car that you can find for under $30,000. The Audi’s timeless styling, luxurious interior, and advanced tech features make it an excellent entry-level luxury choice at an affordable price.
Alternatives to Buying a Car
If you are still uncomfortable with purchasing a car, there are some alternatives that you should consider. Here’s a look at two options other than buying a car:
If you want to drive a newer vehicle but not have to deal with the larger purchase price, then you can consider leasing. With leasing, you only pay for the time that you drive the vehicle. When you are done with the lease, you have the option to purchase the vehicle or simply return it to the dealer. Leases tend to range from two to seven years in length.
2). Ride-Share Service
If you don’t need transportation often, then you can simply use a ride-share service such as Uber or Lyft. You should compare the numbers. However, you may be able to save hundreds of dollars a month by simply calling a ride-share service when you need one.
3). Car-Sharing Service
There are also car lending services such as Turo which allow you to rent a car from a private party for a couple of hours or a couple of days at a time. While the per-day price can be pretty steep for some vehicles, you can rent an economy car at a reasonable rate.
Making the Big Car Purchasing Decision
Buying a car is a big decision. Therefore, you should carefully consider your budget, credit score, and your transportation needs. Be sure to consider all options including purchasing new or used or even leasing a vehicle before making your final decision.
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