I Should Invest In Buying A New Car

Submitted By kyyy09
Words: 1078
Pages: 5
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The purpose and aim of my thinking is deciding whether or not I should invest in buying a new car. The car I currently have has several thousand miles on it and tends to break down or have something go wrong with it from time to time. Instead of spending money on fixing it every time it breaks down, I could just have a new one that has nothing wrong with it at all. I have been saving for several months now and believe I have worked hard enough and earned to buy myself something I deserve. There are several explicit and implicit costs that relate to buying a new car, as well as opportunity costs of course. I am going to examine all parts and possible outcomes, and any deciding factors before coming to an ultimate assessment.
The main question or problem that I am facing is whether or not I will be able to afford the monthly payments. I work at a timeshare resort doing administrative work. So I know that I have a steady income and make fairly decent money each month, but if there was something to go wrong in another area of my life that would require me to instantly have money my savings would be almost completely drained from the purchase of a new car. Also, my car insurance will be more expensive with this purchase because I will have to have full coverage instead of liability, which is what I have now, since I will be taking out a loan. Another factor of my insurance is that it will be a newer car than I have now and I am under 21, making the fees of my insurance go up a little bit. An additional area I need to take into consideration is all of the other bills I have a responsibility of taking care of each month, this includes rent, cell phone, gas and electric, as well as gas in the car. By upgrading to a newer car I will probably be spending less in gas each week and each month altogether, but it is still and explicit cost I need to pay attention to.
I would have to say that the potential or real answer to my dire question of whether or not to make such a significant purchase would most likely be that I will actually end up just fine in moving forward with this decision. I know that I can afford it considering my income, and I am always smart with my money so I will be able to build my savings back up eventually, along with making my payments for the car insurance in a timely manner each month. The information that I need to finalize making this decision is how much I make each month, how much I can put as a down payment, what kind of a loan I will need to take out and for how much, how much my monthly payments will be, including insurance, plus all of my other bills. I make right around $1,600 a month and have about $4,000 in savings now, so as long as I have a payment that does not go over $200 a month and my insurance does not go over $200 then I should be just fine. I also need to consider the fees that come along with registering my car, so I will most likely not be able to put the entire $4,000 from my savings on a down payment.
The ideas or concepts that are part of my thinking include me wanting so badly to be driving a car that is brand new to me, as well as thinking like a rational adult. I want to study and research all possibilities as well as knowing what I am getting myself into by doing so. The consequences of my thinking and action could potentially lead to a new car! If something were to go wrong like losing my job or not being able to afford everything for some unfortunate reason, I could ruin my credit plus lose the car that I worked so hard to earn. The perspective that I bring to this issue is that
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