Is Getting Your Own Car Important?

People often associate car ownership with the freedom of moving and transporting. However, the car ownership industry, with its high consumerism values, is becoming a mousetrap for many. In contrast, some people really need to own their car, despite high maintenance costs, high APRs, and unpredictable fuel rates.

The purpose of purchasing a car is an important deciding factor to know if you need your own car or not. Many travel aficionados are quitting their jobs and buying camper vans to tour around the world. Some people, living in big cities, buy cars to save time. Is getting your own car really important? Have you seen people living their prosperous lives without owning a car?

Evaluate Cost to Value Ratio

Sometimes, you need to spend £100 to save £200. Buying your own car is an investment itself. However, you can only calculate the worthiness of this investment by calculating the cost to value ratio.

The total cost of a car, including APR, instalments, miscellaneous fees, documentation, ownership transfer fee, and more is £600,000. Your instalment plan is of 12 years i.e. £50,000 per year.

You spend £20 on carpool five days a week to go to your office. Your spouse spends £10. You pay £250 to school van for each of your two kids i.e. £500/month. Calculate!

Yearly carpool cost: {(20 x 5 = 100) x 4} x 12 = £4,800
Spouse office cost: {(10 x 5 = 50) x 4 = 200} x 12 = £2,400
Kids School van: (250 x 2 = 500) x 12 = £6,000
Total yearly expense = 4,800 + 2,400 + 6,000 = £13,200
12 month cost = 13,200 x 12 = £158,400
Differential cost = 600,000 – 158,400 = 441,600

These are rough estimates to provide you a general idea of how you can evaluate your cost to value ratio.
Benefits of Getting Your Own Car

It brings the freedom of travelling to your office or even to another city.
• Getting your own car saves a lot of time. A majority of the businessmen prefer keeping their personal
vehicles to avoid extra travelling time. If you are a student and also a full-time employee then buying a
car becomes a necessity.
• You don’t need to worry about visiting countryside or areas with lack of public transportation.
• You may build your career by joining a well-recognized corporation located miles away from your home,
without worrying about the transport.
• You may use your car for passive income by shaking hands with contractors like Uber. Amazon is also all set
to introduce their own scheme.

Drawbacks of Getting Your Own Car

• You need to keep it maintained to avail its benefits.
• You need to search for parking everywhere – grocery store, office parking, shopping centre, community
centre, and such.
• You walk less, and become lazy.
• You may spend more by visiting places that were not on your list before buying a car, or by dining out
every weekend.

The drawbacks of buying a car are many. But the options of financing your car without disturbing your monthly savings are also many. Seek out your priorities to identify your options!