Buying a car is a big decision. It’s definitely a financial commitment, but it can be a very positive step for your financial future. You may have heard that the future belongs to ridesharing services and short-term car leasing. But are those really the best choices for you?
Of course, everyone’s situation is different, but car ownership can be a smart decision, especially if you’re just starting out on your own. Here are five reasons to buy your own car.
- Saving money. This may seem like an odd thing to say about car ownership, but it can really save you money. The costs of renting cars for the short term add up quickly. And long-term leases leave you with added expenses for mileage overages, as well as wear and tear. Surge pricing (especially during holidays and whenever big events are happening in your town) can mean that rideshare trips end up costing a lot more than you thought.
- Safety. Unfortunately, not many cities in the United States have reliable public transit that runs around the clock. Will you feel safe waiting at an isolated stop for a bus or train? Your friends may all use ridesharing services, but ridesharing just means you’re getting into a stranger’s car—and paying for the experience. If you don’t feel good about doing that, then buying a car may be for you.
- Building credit. Buying a car is an important first step to buying a house. If you are successfully paying for a car loan, that helps you build credit. You can’t prove your creditworthiness with a bus pass or the ridesharing app on your phone. Plus, if you own a car, you’ll be able to look for a house in areas which might be a little farther away, but more affordable.
- Freedom. If you’ve ever waited for someone to pick you up for what should have been a quick trip, you know the frustration. With your own car, you’re free to take yourself to your job, the movies, or the grocery store without having to work around someone else’s schedule.
- Job choices. If you don’t have a car, that impacts where you can work. If you can’t get to where a good job is, then you can’t apply for it. Most employers require access to reliable transportation. Wherever you work, your boss will quickly lose patience if you are routinely late to work because of problems with the bus or your rideshare drivers getting lost.
And when you’re ready to buy a car, we’d love to help. Our low-rate car loans make the process easier. And if you need a little help to start, our First-Time Buyer and Parent-Assist programs can get you into the driver’s seat of your first car. Buying a car can give your financial future a lift!
This article should not be considered legal, tax, or financial advice. You may wish to consult a tax or financial advisor about your individual financial situation.