Is a Car Loan a Necessity or Plain Luxury?

Car loans, would it really be worth it to struggle? As car premiums would be high and at the time of reselling a vehicle the value of a car would have substantially depreciated. There is also the problem of having to make those huge amount of monthly payments and a high risk of payment delinquencies. The chance that there would be consecutive delinquencies you could actually lose your vehicle to auto repossession.

There are many things to think about before actually buying a car. Where to get the funds to purchase a car. Is it actually a luxury or a necessity? Buying a brand new car or a used one. These days’ car loans are very competitive in the banking industry and so, if it is deemed necessary, car loans are available in in-house, banks and other financial lenders. Some things to consider before taking out a car loan are as follows:

  1. Which would be faster a daily commute or having a car to go to the places needed? (i.e. home to work and vice versa) If the distance to be traveled would be 4km or less the chance that a short commute along with walking would actually be faster rather than driving, but any distance above 5km it can be assumed that it is faster to drive.
  2. There is also that question of gas vs. fare. Aside from comfort gas prices is something to be considered as mass transport vehicles are on the rise the farther the distance to be traveled. The more economical a commute would be rather than driving your own car, especially when driving alone. Then again a sub-question to that would be which is a personal preference economy or comfort?
  3. A car is no toy, that being said a responsible car owner has to set aside a budget for monthly maintenance check-ups. To keep the car running smoothly plays a huge part in car ownership, especially as car loans are the car owner might just end up with a very, very expensive paperweight.
  4. Would you own a vehicle for the simple purpose getting from point a to point b? Or would this vehicle would be a family vehicle that almost all its members would gain from its ownership. As children would be more comfortable in going to school, carrying groceries from the supermarket to home would be a lot more comfortable as well as going from home to work and vice versa.
  5. Having considered all those things one more questioned, should be raised, the question of distance versus traffic. If a 30-minute walk turns out to be a 45-minute drive, would it still be feasible to have a car? Unless that there is heavy load involved in carrying a walk would sound like a better idea since a single person could fit into small walkways where automobiles would not fit, ergo a short walk would be faster, more economical and not to mention healthier than going for a drive.

Car loans could easily be an answer in owning a vehicle, but it would not be only the financial cost that would be important. There is also the personal cost, comfort, speed and economy that should be considered. As costly as it seems if the personal cost prevails, the financial cost affordable, as car loans could really be costly. Then an automobile would be for you.

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