Simply put, an investment is something that generates cash, but it is interesting to note that there is no one way to earn money. When people talk about purchases they are proud of like a kitchen mixer or the new grill, you might have heard the phrase, “it practically pays for itself”. Some appliances are so efficient and valued in the home that it saves money little by little. A quick scenario would be how a washing machine can use a small amount of water for a large load of laundry that allows you to do more important things. Compared to hours of handwashing and using buckets of water, a washing machine gives you more than ease; it saves money.
A car can be that investment when the circumstances are right. Here are four questions you can ask yourself to see if it would be an investment for you:
Why do you need a car?
Two parts of your life can push you to purchase a car: work and home. When you constantly need to travel to meet up with clients in the city or even out of state, the long commutes can be a hassle. It also leaves you vulnerable to circumstances beyond your control. When you have a car, you can quickly make judgments that can cut your travel time in half. Household concerns, caring for children or enjoying activities that require a lot of traveling can motivate you to get a car. Child rearing is not just about going to school. There are extracurricular activities, family vacations, and a lot of bulk grocery shopping that you have to deal with. Having a car on hand eases the burden of coordinating. Make sure you have an existing long term need, or at least a long term plan for your car.
What model are you considering?
A car has many uses; it can be purely practical, transporting people and doing supply runs, but there is also the luxury aspect where people buy cars solely based on design and features. A vehicle that can be considered a good investment is one where everything about it lends itself useful in your daily life. Models that do not fulfill your basic requirement or have excessive features you do not use may not be the best choice. Even when the promotion, price, or style is appealing, if it cannot integrate itself properly into your lifestyle, it is not worth it.
How long will you use it?
Some people like to switch their cars frequently for a change of pace. If you are the same, buying a brand new car is not a smart investment since you might turn it in too early. Youngautomotive.com has a wide selection of used cars that you can go through. Every model can feel new without breaking the bank. When you intend to keep the car for as long as possible, buying a new car is the way to go; you have more time with it in peak condition instead of using it mid-way.
Do the pros outweigh the cons?
After you have established your definitive list try to make a simple pros and cons list that is unique to you. When you see the potential in owning a car, go for it. If the long-term costs are too much, maybe hold and wait until the purchase can become an investment. Timing is everything.
To read more on topics like this, check out the lifestyle category.