Owning a car can be a costly and time-consuming effort; as a result, you may find yourself wishing you could simply get rid of it and go about town on a train instead. However, in all honesty, it is not a workable solution for the majority of people, particularly those who have 9 to 5 jobs and are forced to travel often to places that are more difficult to access.

Nonetheless, if you are genuinely considering getting a new car, you should hold off on making such a big choice until you have carefully weighed the benefits and drawbacks of it.

Advantages and Disadvantages of Having a Car

Cars are often the first major purchase made by young adult, and they are frequently sought for before homeownership – mainly thanks to cost and necessity.

Let’s have a look at why owning a vehicle could be a smart idea:

The Benefits

Convenience

If you reside in an area that is distant from restaurants, super markets, bus lines, and other forms of public transit, not having a vehicle is a huge nuisance.

Consider the inconvenience (and expense) of having to book a taxi, using an e-hailing service, or rely on others each time you want to have a meal or go grocery shopping. People do it, but it’s not as straightforward and requires a lot of forethought.

What if you fall sick and need to see a doctor? What if there is an emergency? For these reasons, owning a vehicle is nearly a need, and the convenience aspect is unrivalled!

If you live in a busy city where food stalls, grocers, and public transport lines are all within walking distance, you may be able to do without a car.

Having Freedom

Part of the convenience of getting a new car is also enjoying your own freedom. Ride-sharing services limit your flexibility and may grow pricey quickly.

Moreover, several ride-hailing services and public transportation do not operate outside city bounds. If you own a vehicle, you can apply for new jobs, relocate, or visit relatives and friends.

These days, most workers don’t even reside in the city where they do their jobs, and the vast majority go to and from their workplaces each day in their own cars. Having your own car allows you to live anywhere you wish since you now have a dependable way of transportation.

Ease of Travelling

The freedom to go on spontaneous road trips is a major perk of having your own automobile.

Although you may have gone on some of those road trips with some of your friends or family, but now you are no longer dependent on them to travel. You can also choose the time and place you wish to go. But spontaneous road trips may be some of the most enjoyable ones compared to the ones you plan for!

Costs could well be cut even more when travelling by car with a family. Instead of bidding on numerous pricey airline tickets, you can just pack everyone into your lovely new vehicle and drive away.

Saves Time

Buying a car of your own will overall save you time. You can leave your workplace or your house whenever you want if you don’t have to wait for a bus, carpool, or ride-sharing system. A little bit of traffic is something you have to put up with on the road, but at the end of the day you get to set your own timetable.

It is a huge time saver compared to taking many buses between cities and towns. You’re probably already quite busy, but having your own car allows you to make things a little simpler on yourself.

The Drawbacks

So, what’s the downside to owning a car, if there are any?  These are some of the most prevalent concerns.

Heavy Expenses

Some people may believe that just the initial purchasing price of a car represents the whole cost of ownership. In reality, when additional expenditures such as loans, maintenance fees, insurance, and road tax are included, the cost of ownership exceeds the purchase price of the car. All of these prices vary based on the vehicle, but they often coincide with the purchase price – the greater the purchase cost, the higher the other expenditures.

The Hassle

Checking tires every few weeks, filling up gas, having your car serviced, dealing with repairs, purchasing insurance, reloading toll cards, and getting your car cleaned; automotive chores might seem like an endless list of to-dos.

People do it every day, and the majority of them do it without objection. However, when combined with the rest of your chores, the inconvenience may quickly become a major strain.

Endangering the environment

You don’t have to be a “tree hugger” to see the environmental harm caused by automobiles in general. And there is definitely cause to be concerned about environmental pollution, since it is responsible for nearly 2 million premature deaths globally.

Car exhaust emissions include dangerous chemicals such as carbon monoxide and sulphur dioxide, among others, and are not the sole cause of pollution. Poorly maintained automobiles have a considerably greater impact.

So, if you’re worried about the environment and lowering your carbon footprint, you could consider ditching your automobile in favour of alternative modes of transportation.

There are other options, including carpooling, walking/cycling short distances, and using public electric transportation, such as the MRT, which is reported to save 34,000 tonnes of CO2 per year.

Some Factors You Need to Consider When Buying a Car

Depreciation

A car’s value will decrease with time. Depreciation begins the minute the car is delivered to you, and the depreciation rate varies depending on the vehicle. A vehicle loses 10% to 20% of its worth on average every year, therefore it’s no surprise that vehicles are often thought of as a depreciating asset!

Credit Score

A credit score, in general, reflects a consumer’s creditworthiness. Lenders (creditors) like banks will look at our credit score to see whether they would provide us a loan. A higher credit score indicates a stronger credit standing, which gives lenders greater confidence in your ability to repay future loans as promised.

Furthermore, having a higher credit score can enable us to benefit from a better financing rate, leading to a smaller amount of interest to be paid, which means you will also save more. For people with weaker credit ratings, the reverse is frequently true. However, here’s a suggestion for improving your credit score: pay off all of your debts on schedule. This enables you to get a higher credit score than those who do not have any debts.

Cash Flow and Net Worth

In addition to the monthly payments on a vehicle loan, expenditures like gas, insurance, and tolls may have a significant impact on your ability to make ends meet if you take one out. With rising costs, cash flow may become tighter, resulting in less savings available.

When you get a loan, your net worth will be affected as well. What is the significance of this? If your net worth is positive, it signifies that you can pay off all of your obligations in full after liquidating all of your assets and subtracting all of your liabilities. This is not good news for people who have a negative net worth.

Conclusion

Once you’ve thought about everything, including the costs and benefits, you’ll be in a better position to make an informed decision about purchasing a car. Ask yourself if you are willing to give up all of the above things just to get an asset that goes down in value. If you’re not sure or aren’t sure, you might be better off taking a taxi because you won’t have to worry about the expenses and monthly payments, which could hurt your financial health in the long run.

Still, there are some good things about buying a car. Some of the perks are that it is easy, safe, and gives you privacy. In the age of Covid-19, this is also a big plus! So, getting a car might not always be a bad idea. You could also think about getting a secondhand car instead, but this comes with its own set of costs, like maintenance and repairs. Just be aware of all the considerations and spend responsibly to get the most out of your money!