Cars, cars, cars, how they have changed our lives and perception of success. Oh what would we do without them.
To some, it is a means of traveling from point A to B, to some, it is a way of showing their worth/status. To others, it just brings some temporary satisfaction
Yes cars,
As good as they come, they have been reason to some poor decision making, let’s get into it.
When thinking of buying a car, what comes to mind, the make of the car? The color of the car? The age of the car? How it would be financed?
Here, we break down why you should not buy a car on finance, regardless of your financial status.
The reasons we are about to mention are not exhaustive, but pretty big ones.
So here are common scenarios I know:
A graduate gets a job, and the first thing that comes to mind is buying a vehicle. In the first few months, you decide to purchase a vehicle on finance and claim ownership.
And here is a second scenario
You have had a car on finance, and just when you are about to get out of debt, you decide to trade it in, and get newer vehicle on finance. You are in debt all over again. Of all forms of debt you may get into, car finance should not be one of them.
And why is that?
The inverse relation between the car value and the debt repayment
Unlike a home loan, or a mortgage loan, where the value of the property financed will likely be increasing, the moment you drive the vehicle out of the dealership, its value begins to depreciate while the interest rate on your car finance kicks in.
Getting a job, or a better one, should not be a reason for you to get into debt, especially car debt, but should fuel your energy to getting rid of your debt.
You’re not tying yourself into debt over a long period of time and paying for something that has long since exhausted its financial worth.
