Published: November 2022

What Can You Do?

The development of automobiles has come a very long way. For instance, upon its introduction in the early 1900s, the automobile was immediately hailed as the epitome of luxury and the highest possible status symbol.

Automobiles are now commonly regarded as an unavoidable requirement and are sold at prices that make them accessible to consumers even if they have limited financial resources. In point of fact, it is not unheard of for families to have more than one car, with one vehicle designated for each member of the household who is old enough to drive. At this point in time, it is necessary for everyone to own an automobile. The days when having a car was seen as a luxury are a thing of the past and should be left in the past.

Having said that, having a car, which is the second most expensive purchase behind a house, is simultaneously an investment and a counter to conventional wisdom. Why? Investing is done with the goal of increasing one’s wealth and the value of their existing investments. When it comes to purchasing an automobile, on the other hand, things work in reverse order. The worth of the majority of assets that a person amasses during their lifetime, such as a home, retirement account, stock portfolio, or piece of artwork, often rises over time. Although there is always the possibility of a loss in value for any given investment, you don’t buy a home with the expectation that your investment will go down in price.

It is possible for a car’s value to drop by more than 35 percent in just the first year, and the average decline in value throughout the first five years of ownership is 65 percent. The counterintuitive trend of a car’s value going down over time is frustrating to watch. The value of the car will decline as you make payments toward paying it off, but the total amount that you will pay won’t change. Why would you pay more for an object than it is actually worth? a reasonable question to ask. Buying a new automobile, on the other hand, confers a number of advantages, such as improved mileage per gallon, greater mechanical dependability, and the opportunity to make the most of the numerous cost-cutting options at your disposal, such as designs that are aesthetically pleasing and stylish.