To Buy Or Not To Buy A Car In The Credit Crunch
June 17, 2008
Buying a new car is always a difficult task especially in times of economic slowdown. Even with the stagnant wages, massive lay offs, and numerous foreclosures there are people who still find it necessary to rush out and buy the newest model car. Whether it’s that hybrid or just a new traditional car, consumers are facing a tough choice of purchasing something new or sticking with their old vehicle.
A car is one of the most important investments one can make not only for its financial value, but for the status symbol that a car represents. A new sleek car communicates to the world that its driver is successful which is important for professionals who need to make an impressive first impression. So, there are times when buying a new car is necessary but for those that need to keep up with the Jones’ they might want to think twice.
Every single new car you purchase will, in time, become an old car. That’s a fact of life that is really unavoidable. What you can do though is keep up with the maintenance of the vehicle in an effort to keep the vehicle in good working order. With proper care and attention you can extend the lifetime of car for several years.
Many older models are still running extremely well bringing many to wonder why owners want a new one in the first place; aside from keeping up appearances.
Buying a new car is not a necessity in many cases, especially when you can not afford a new one. Many consumers are cutting back on large purchases, like cars since the payments are just going to be too much.
This is especially true for those with less then great credit. Due to the Credit Crunch, many consumers are finding it difficult to find a loan with acceptable rates and interest. So, if you absolutely need a new car you will first need to know if you can afford it.
While this is an obvious piece of advice you will have to understand that before 2007 many lenders were virtually giving away auto loans left and right. After the housing market collapsed and the resulting credit crunch occurred, consumers are finding that getting a loan, even an auto loan extremely hard. This is an extremely good reason to hold off on buying a car especially for those that are going to depend on loans to make the initial payment.
Payments can run up to $400 a month, sometimes much more depending upon the car, the lender, and your credit rating. If you have even a slight doubt about whether or not you will be able to make this payment without sacrificing on other bills or the amount of groceries you buy then now is simply not the right time to make a large purchase. If your old car is still running well enough and does not present a risk to you or any other drivers on the road then it is a simple matter of logic. Why buy something when what you have is working just fine.
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