Are you young and thinking about buying your first car? If you live in an area where safety is not good and where the public transport is ineffective, then you should buy a car. However, if you live in an area where the public transport is excellent, then a car could come with a lot of disadvantages such as the following:
1. Cars are costly to maintain
The high costs of maintaining a car not only includes gas but also tune-ups, oil, tyres, insurance, registration and parking.
2. Buying a car escalates your expenses
You should aim to not spend more than 10% of your income on your car. If you do, it could be problematic especially if you have things such as a home payment to take care off as well as other high prized assets.
3. A car is a rapidly depreciating asset
You have probably heard by now that the moment you drive a car out of the showroom, it starts to lose value. On average, a car loses between 15-25% of its value every year during the first five years.