Do You Really Need to Buy A New Car?

In our society today is common practice to change cars every three to five years. People keep on switching to new car for no reason. Changing cars has become a way for people to express and show their status. Every year there are so many new car models coming up. So they keep on changing the car whenever they saw some new models that they like.

I have heard people saying this: “Since I need to pay for my installment every month, then why don’t I switch to a better new car?” It seems like paying car installment has become part of people’s routine life where if they don’t pay for the installment, they don’t know what to do with the money. Maybe people have forgotten that they don’t have to pay for car installment if they don’t want to.

I know that I may offend a lot of people by saying that buying a new car is not necessary. I am not saying that the purchase of a car is not necessary and that the replacement of a car that is no longer fitting the initial needs of the family is a luxury. What I do ask is that next time when you get the itch to buy a new car to be honest and ask yourself; Is it necessary? Do you want to buy it because you need it? Or you want to buy it simply because you wanted to show off to your friends your new toy? Do you buy the car to boost up your ego? If you answered yes to any of these questions, then you may want to reconsider the purchase of the car.

Consider the amount of money saved per month and what you could do to improve your family's wealth, like paying extra toward the house loan. This way you can finish your house loan faster, increase your equity and reduce the interest. Also, you can use the extra money to eliminate/reduce your high interest credit cards. Another option is to use the extra money to do some investment. These different use of the extra money saved by not rushing to buy a new car will improve your financial situation.