Nowadays, the need of four-wheeled vehicles for family is increasing. However, keep in mind that a car or other vehicle types is in the category of consumer goods, and generally cannot be used as an investment asset. A car is an object having price depreciation from year to year. Therefore, generally, car cannot be used as an investment asset.
Buying a vehicle that functioned for productive activities (business) is different from buying a car for consumptive needs. If for business activities, it would be okay to buy a car with installment scheme. Moreover, if the car is used for your daily consumptive activities, it would be best for you to buy it in cash.
Before buying a car, you have to audit your personal financial or household finances. The goal is to measure your expenses when you have a car. You just calculate your family income per month. After that, count how much you or your family spends per month before buying a car.
After having the amount, now you have to calculate the component costs to be incurred when having a car. If according to your calculations, your family income is inadequate to buy the car you want, do not force yourself to buy, even if it's a used car.
Choosing the type of car
The main thing in buying a car is the engine condition. Remember, engine conditions determine the operating costs (fuel and oil), as well as maintenance costs such as servicing the car, and the purchase of spare parts.
In addition, if you are intending to buy a car, you should choose the type of car having high re-sale price value.
[image taken from: www.centroone.com]
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