Purchasing A Brand-new Car Isn’t A Financial Sin

Time and time again, you will find every financial advice thread telling you to avoid buying a new car because it’s one of the worst financial investments you could ever make earlier on in your career, but we strongly disagree with this notion that car purchases are inherently bad. In fact, we can list plenty of reasons why it’s a million times more beneficial to own a car as opposed to not having one without even accounting for convenience’s sake.

Furthermore, there’s a whole list of nuances and details that most people overlook when purchasing a car that we think every entrepreneur should be aware of before they make the assumption that someone else is wasting their money when buying a new ride. And so, to help increase financial awareness on the matter and remove some of the infamy placed on brand-new vehicles, we’ll be going over some of the advantages you may have taken for granted.

You Need To Get Around Places

While you could walk to every destination or use one of the many rent-a-bike applications to get to and from places, nothing comes close to having your own car when you need to get around places ASAP. Four wheels and an engine are just logically faster, and you also get the net benefit of having the extra capacity for more people to come along or extra space for any stuff that you need to take someplace else. 

  • Daily Responsibilities And Work-Specific Tasks: Whether it’s going out to buy some groceries or traveling on-site for a work project, having your own vehicle makes both activities far more accessible. And if we consider the latter part even further, the amount of time you save traveling means you get a lot more done and therefore earn a lot more in the process. Remember, time efficiency and optimal time management are at the top of today’s current priorities, and it could be the one thing preventing you from going to the next level.
  • Lifesaver During Sudden Emergencies: Another excellent advantage of owning a brand-new car is how it can act as a lifesaver during sudden emergencies that need you to get somewhere super quick. And given the fact that we are still in the middle of a global pandemic, getting your second shot amid the fears of the delta variant is something you want to check off your list before things escalate even further.

Can Help You In A Financial Pinch

Contrary to popular belief, a brand-new car can be financially sound and even help you in a financial pinch if you were smart with the agreements and contract on your purchase. You see, there’s more to buying and owning a brand-new car than just making a down payment, and it’s this aspect that people fail to account for completely when they just assume every purchase as a bad investment. 

  • Leasing Options Mean Less Monthly Expenses: You don’t have to make a full-price purchase commitment to ride a brand-new car, and one of the smarter decisions would be leasing one. As a result, you end up with fewer monthly expenses and get to ride far more luxurious cars that would have been out of your budget range. Of course, it also means you won’t be owning the car after the term ends, but it’s a great placeholder for important business events where pulling out all the stops is necessary.
  • Taking Out A Loan On The Car: We can never forecast when financial disturbances occur in our life, and no matter how much we prepare for them through our savings, nothing’s stopping the worst-case scenario from happening. However, you could decide to take out a long on your vehicle through an auto equity loan and receive a quick fix to meet any urgent needs.

Of Course, We Can’t Avoid Its Disadvantages.

Likewise, there’s no denying that brand-new car ownership does have its advantages, and it wouldn’t be fair if we didn’t mention them as well. Firstly, the main argument as to not purchasing a brand-new car is that it’s a depreciating asset, and the second you sit on the driver’s seat, it will already be a fraction cheaper than the purchase price. Secondly, there’s plenty of other investments out there that could put your money to good use, such as stocks, or if you’ve put your money into Bitcoin recently, then you could’ve ridden the bullish move to $42,000

However, Don’t Look At Car Purchases All In A Bad Light.

Nevertheless, we still think it’s wrong to think of car purchases as immediately bad, and there are plenty of reasons as to why it’s better to have one depending on your career or lifestyle. So, before you make out all brand-new cars as bad investments, understand that there might be a deeper reason behind that investment in the first place.