Do You Really Need to Buy a Car?

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Buying a car is a big investment. The monthly payments can take a bite out of your annual income. There are also costs to car ownership beyond the monthly note including service, maintenance, fuel, insurance, annual registration renewal and parking fees. You can better estimate the cost of owning a car by using several of the tools for car buyers on Cars.com. You should also ponder these questions before you head to the car lot.

Do you live in a city that is friendly for those without wheels? Maybe you live in a big city with tons of taxis, buses and a dependable metro or rail system. These amenities could mean that your money is better spent than on a car note. In these types of places, parking spots are an additional cost and can be very expensive depending on your location. If you can easily get where you need to go on foot or by using public transportation, do yourself a favor and save the cash that you would spend on the car.

If you live outside of a compact city, in a community that’s more spread out or in a rural area where there’s a lot of space between you and your closest neighbor, a car purchase will likely be more out of necessity. Getting where you need to go on foot probably isn’t an ideal scenario in these locations. There might be a public bus system, but stops tend to be more centrally located. A car is probably the answer if this sounds like your situation. The cost of owning a car in smaller communities and rural areas tends to be lower. The population is smaller which has a positive impact on your insurance costs. There probably won’t be any fees when it comes to finding a parking spot for your vehicle. You might have an increased fuel consumption cost depending on your daily use.

Deciding whether or not to buy a car is a big financial decision. New cars can easily tap into hundreds of dollars of your paycheck each month. Used cars can be more unpredictable and could surprise you with breakdowns that cost even more. But, the freedom you get from car ownership can’t be beat. You can hit the open road at a moment’s notice. You can also come and go as you please without depending on anyone else. There are pros and cons to each scenario. Just weigh them carefully before making any final decisions.