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Many people love shopping for a new vehicle. It is sort of an adrenaline rush. The new car smell, the pounding new sound system and all of the brand new toys that come with it. We also have to remember, the test drive! That is the most fun and important part of searching for the new car of your dreams.
Now don't get me wrong, it could be stressful as well. One has to deal with tough questions such as, leather or vinyl? Sunroof or no sunroof? Pearl white or metallic silver? Then it gets even more complex when you deal with things such as horsepower, trunk room, and MPG (miles per gallon).
Once you choose the car of your dreams, you don't just have to deal with the overall cost, but an array of other issues as well. First, you have to purchase insurance. Depending on the amount of security and safety features the car has, usually the cost will be lower. If you are buying an older, Certified Pre-Owned vehicle, the cost tends to be higher. Then one must purchase a warranty. In some cases it may be included with the price of the car, if not, then it can get pricey. Typical warranties usually cover most necessities and sometimes do not cover other parts (such as stereo, navigation, sunroof, tires, upholstery, etc.) If someone decides not to purchase a warranty, they run the risk of paying for service/parts out of pocket. These costs can skyrocket rather quickly.
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Another dilemma when purchasing a new car has to deal with it's book value. Once a new car is driven out of the lot, it's value immediately depreciates. Most vehicles will see this depreciation consistently. When someone tries to trade in their car a few years later, dealers or used car salesmen usually offer ridiculously low prices.Credit: Wikimedia Commons
Wait! There are still some other costs one must consider. Fuel can be a major problem when purchasing a new car. Especially if someone buys a six or eight cylinder car. These cars can guzzle exorbitant amounts of gasoline. Over the years, this forced many individuals to look into hybrid vehicles. These vehicles typically use less fuel and run on both electric and gasoline.
Lastly, one must consider the costs for parking as yet another expense. Whether it is a parking lot or on the street, both usually cost money. These costs could get steep over a period of months.Credit: Wikimedia Commons
So, if someone is looking to buy a new car, they should do their homework first. Moreover, they should make sure they have tons of money stacked up and maybe even their own gas pump in their backyard! Then again, they have some other options. They could always invest in a Metro Card (bus and subway pass), new sneakers, or a shiny new bicycle.