Buying A CarCar Bites

8 signs that a brand new car is not for you

We have seen many people who regret buying new cars over the years. These are the eight most common signs that buying a brand new car may not be suitable for you.

1) Struggling with 40%-50% down payment on the new car

8 signs that a brand new car is not for you

Assuming that a car cost $100 000, a down payment of $50 000 is needed. That can buy you 45 years of chicken rice. Puts things into perspective, doesn’t it? A good loan needs to be financially make sense!

2) Warning alert if you are hitting the TDSR limit soon?

8 signs that a brand new car is not for you
Adding all your repayment obligations (housing loans, student loans, credit card debts, car loans, personal loans, etc.) cannot exceed 60% of your income if not, well, we don’t want to know what happens to you.

3) If you are considering other forms of ‘high loans’

8 signs that a brand new car is not for you

If you are taking a big loan, there is a possibility that you have insufficient cash to eventually pay it off

4) Don’t have emergency savings in your account

8 signs that a brand new car is not for you

It is always wiser to have a safety net. Better safe than sorry.

5) How is your credit score?

8 signs that a brand new car is not for you

Paying your bills late and having too many cards is definitely not a good sign

6) Just graduated?

8 signs that a brand new car is not for you

You are just starting your journey in the working world. Settle down financially first before buying a brand new one. Maybe opting for a used car would be a better choice, since we cannot deny the importance of it.

7) You change cars like you change clothes

8 signs that a brand new car is not for you

A car is a huge investment and if you are going to change your preferences every once in the while, a used car probably your best option.

8) A car is just a ride to you, the functions provided doesn’t really matter to you

8 signs that a brand new car is not for you

If you’re not too fussed about the specifications of the car, why spend the large premium buying a brand new car (and even paying for COE?!) when you can easily by a cheaper used alternative?

Disclaimer: I’m not saying that you cannot have a car. I am just saying that buying a new car may not be a the best option for you. There will always still be a way for you to drive around without burning a hole in your wallet.

 

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