Contributed post
There’s often a considerable gap between the car you are driving, and your dream car, which can at times feel quite frustrating – as we live in a world where we are judged on external aspects, such as the car we drive… but also, it’s just a lot more fun to drive a luxurious and reliable car rather than an old banger that makes you feel tense each time you go to turn the ignition on, or park on a hill!
Today, there are so many fancy cars to choose from – whether you’re looking for something that’s saving the planet such as an electric or hybrid car, a cool convertible to enjoy the summer sun, or something more family friendly but which still has an edge such as a Volvo XC90 or Audi Q8.
Often, the thing that limits people most when it comes to acquiring their dream car is finance – be that due to the affordability of monthly payments in addition to all the other regular expenses associated with running a home, or even a car for that matter… or the difficulty to obtain finance to purchase a brand new car – meaning you’re reliant on something you can pay up front, which limits most people to a cheaper car.
Then, from a financial front, it’s not just the cost of the car that counts – it’s also the tax and the insurance, which tends to be much higher for large engine or sporty cars that are deemed higher risk by insurance companies and tend to produce more emissions, in terms of road tax considerations.
There is also the petrol or diesel cost to consider, as the majority of “dream cars” have large engines with fast acceleration capabilities – meaning they tend to be gas guzzlers in respect of their ability to rapidly burn through fuel.
There’s often a higher risk associated with fast cars due to the amount of accidents that happen as a result of excessive speed, which is where workers compensation lawyers come in handy, as they can help settle any motor vehicle accident compensation claims much more efficiently and rewardingly than insurance companies.
Speaking of insurance, it’s a good idea to check the insurance group of your dream car before purchasing it, as insurance groups work this out by utilising a complex algorithm which means the insurance category might be much higher or lower than you anticipate – and whilst this aspect of obtaining your dream car isn’t quite as much fun as visiting the showroom or idolising over Pinterest photos, it is necessary.
OWNING
Owning a car tends to be the favoured choice of most people, as this way they have an ‘asset’ that is their own – meaning they can always sell it on if necessary, and in some ways it does make sense as it’s akin to the owners mentality versus the renters mentality.
If you rent an apartment, then at the end of the tenancy you don’t have anything of lasting value to show for all the money you spent on the apartment – whereas, if you are paying off a mortgage each month, the property is your own, and you are not left with nothing at the end of it.
That said, a car is not an asset in the conventional sense, it’s actually considered a liability by most economists as a car is a depreciating asset, meaning it loses money each year, or with each mile that it is driven.
That said, at least it is yours, and this way you can sell it on, at a later stage meaning you are essentially paying for the depreciation of use, rather than the full ticket price.
Buying your dream car, brand new, can be an expensive option reserved for those with particularly large egos – as those first few miles on the odometer come at a very steep price, in the sense that the car swiftly depreciates as soon as it is driven off the forecourt.
For this reason, buying a nearly new car often makes more financial sense – as this way, you still have the feeling of driving a new car (as perhaps it’s only done a few thousand miles) yet you are getting much greater value for money.
This is particularly the case, if you are able to buy the showrooms ‘tester’ vehicle, as this is often fully equipped with all the best options yet is offered at a knockdown price.
RENTING
If you are over 25, then renting your dream car can offer an inspirational experience that doesn’t cost all that much. There are several car rental companies that specialise in premium cars, meaning you could easily find models such as BMWs, Mercedes, and even Lamborghinis or Porsches to rent for the weekend, at less than you might imagine.
The only thing to bear in mind is that if you damage the car, even slightly, this can come at a high cost which will be taken from the substantial security deposit charged to your credit card.
Renting your dream car is not a wise option, in the long-term, as it’s probably the most expensive option available – yet as a sporadic treat, it can be a fun way to enliven the spirit and embrace the fun of driving.
LEASING
Leasing seems to offer the best of both worlds, as unlike buying a car upfront, you pay a monthly amount in order to use the car; similar to that of renting a car but more long-term and often you can purchase the car at the end of the term via a balloon payment… meaning all the money you invested has not gone to waste.
The great thing with leasing, is you can change your car often, so that you’re not stuck with a vehicle that no longer suits you. This flexibility is quite possibly the greatest benefit of leasing as nobody wants to buy their dream car, to then get bored with it a few months down the line, but be stuck with the significant cost of vehicle finance.