For many people, using public transport is a part of daily life. Even if the opportunity is there to purchase their own vehicle – many choose to rather stick to the public transport option. There are various reasons for this decision, one of which is that, for them, it remains the most cost-effective option.
Although there are other primary factors to consider when selecting the best mode of transport, including, locationand lifestyle– Cost is often the biggest consideration when deciding on a means of transport. One needs to weigh up the cost of buying a car vs using public transport.
There are direct and indirect costs which should be taken into consideration for private transport:
- Direct costs:
- Interest on a bank loan
- Monthly instalments
- Warranties and insurances
- Indirect costs:
- Vehicle maintenance
- Vehicle depreciation
- Fuel consumption
Public transportcosts vary depending on the mode of transport (bus, train, taxi, and the more expensive Uber) and where you live, but it is most often significantly more cost-effective than private transport.
Here are 5 tips to help you when making your car purchasing decisions:
- Make sure you research first! Establish what kind of vehicle will best suit your needs AND fall into your affordability bracket
- Work out your budget, taking long term monthly costs into consideration – and stick to that budget
- Understand financing options
- Visit a reputable dealership
- Test drive the vehicle
For more useful tips on purchasing your first car, join the conversation on Facebook – https://web.facebook.com/imperialauto.co.za/