Buying a new car is a big financial decision. In the olden days, people often changed their cars after a few years of use because cars were much less reliable back then than they are now. Then came the Japanese-made cars. These cars tend to last longer with regular maintenance. Therefore, people don’t have the need to change their car for a new one more often.
Before you head to a dealer to see your favorite new model, ask yourself the question, do you really need a new car? A new car, especially the latest models, is expensive and if you have to save for months or years for it, you should think twice. The money used for paying for the car could be used elsewhere in a more profitable way. If you plan to apply for a loan, you have to think even more carefully because a car is a luxury. Any type of loan is a form of debt. Unless you are sure you definitely can handle all future payments and that you have a reliable stable job to service the loan, you should not get a new car.
An old car is a great alternative. Old car models are much less expensive than new ones, but they can be just as good if you know how to care for them. The moment you take a brand-new car home, its value reduces significantly. In other words, it becomes classified as a “used car”. By buying a used car, you avoid the instant depreciation of your money. And if you have a tighter budget, why not consider leasing instead?