Factors to consider whether purchasing a car is practical for your needs or not?

Let’s face it. An individual that is braving the long commute, the snail-paced lines, and the heavy traffic deserves all the comfort he needs, especially after an exhausting 9 to 5 dreadful shift.

Some might say that if you want to escape such tiring scenarios, the best thing you can do is purchase a car. Or whether it every single day of your working life until you retire.

But here’s the thing, some would suggest that with the amount you’re spending for daily commutes and the distance you’re actually traveling might be enough for you to think twice of purchasing your own vehicle.

Interested to see if whether owning a ride is practical for you, your career and your lifestyle? Read this article from Philkotse.com to find out.

1. Evaluating the Distance

One of the many things about commutes and public transportation that makes it a viable option for all working individuals out there is because of its affordability. However, it really depends on whether the distance and the tiring commute is worth it regarding financial values.

Say, you’re traveling for at least 25 kilometers from your home to your office that is on an estimated 30-45 minutes of travel. The options you have is taking a bus, which will cost you Php 50.00.

Consider your need and affordability before choosing kinds of transportation

In a day, you’ll incur expenses equal to Php 100.00 plus the dreadful waiting time at the terminal and the discomfort you can’t quantify. If you can bear with this set-up and it isn’t affecting your work delivery, habits and performance, then it's safe to say that public transportation is an excellent way to go.

But, if you’re the kind of commuter that weathers 1 hour of travel and spending about Php 150.00 – Php 200.00 for a daily commute, maybe saving up for a second-hand unit is the best option. Given that you have the income and stability for such financial endeavor, which we’ll discuss later.

Commutes and public transportation is a viable option for all working individuals out there because of its affordability

2. Tracking the Mileage

One fool-proof assessment for whether owning a vehicle is a practical choice for you is to rent a car and track your mileage. A vehicle is meant to consume 13,000 – 15,000 miles annually.

You can calculate your daily mileage by multiplying it to 360 (days in a year), and if you’re not hitting that benchmark, a car isn’t a good option for you and your finances.

If it does, it’s time to assess your financial situation and career set-up to match the expenditure you’ll undertake. There’s nothing more practical than being ready, financial-wise.

Rent a car and track your mileage

>>> Read more: How to track mileage without an odometer & why you need to do it.

3. Career Undertakings

Are you an office to home and vice versa kind of employee? Or are you the one who’s tasked to bring documents to and fro, fetching this and that? If your job requires you to travel without utilizing a company vehicle or is just reimbursing your fare and expenses related to it, a vehicle of your own would be a more convenient option.

Instead of suffering the traffic blues and the tiring public transportation, you can travel with comfort. Just make sure to ask for the reimbursement of your gasoline.

If your job requires you to travel, a vehicle of your own would be a more convenient option

4. Joy Rides and Carpooling

Do you know someone from your office or from your residence that drives close to your destination? If you are good friends or is related to that person, you can ask for their permission to hitch a ride with you while you contribute to gasoline expenses.

Say, the usual fare for you is around Php 20.00, instead of suffering the inconvenience of public transport, you can pay them the fare and enjoy a nuisance-free ride.

Just make sure that you’re not being too demanding or pushing your privileges to the point of being a freeloader.

Enjoy carpooling to save money and meet new people

>>> Also check out: The benefits of carpooling and tips to make it more fun

5. Financing and Loans

You see, a car is an asset. More often than not, it is a luxury that not everyone can afford. And for an asset to be yours, you need to invest a hefty sum of money. An average brand new car would cost an individual around Php 700, 000 to Php 800, 000. This does not include maintenance costs and emergency repairs.

Not to mention that you’d have to spend for registration fees, insurance fees, toll fees, and interest fees if you’re going to avail of an auto loan, you’d have to be mindful of loan amortization, admin fees and many more. You’ll have to pay for gasoline, car accessories, and other items for convenience purposes.

If you think that you can't afford such financial expenditures, it may be best not to have it in the first place instead of burdening yourself with debt.

If you want a clear and definite rundown of how the purchase will affect your finances, it would be ideal to go to your bank and have an estimate for you. In this manner, you can objectively make a decision.

It would be ideal to go to your bank and have an estimate for you

>>> Worth your attention: 8 Things to Consider to Get a Car Loan in the Philippines.

6. Living without One

Living without a vehicle will have you yearning for one, while living with one may get you to wish you don’t have one. If you’re up for a little experimenting, try to live a week or two without your ride and vice versa. Ask for a friend’s help regarding this little fiasco. Ask for permission to borrow their ride and promise to be responsible for it.

Pay for gasoline, for the tire change and for any accidents (hopefully you won’t) that you’ll be involved. If you think you can handle it, you have the finances to back your purchase, and you want to experience the comfort of traveling, then a car would suit you best.

Living without a vehicle will have you yearning for one, while living with one may get you to wish you don’t have one

>>> Related article: Which car body type is best for you - A Buyer's Guide.

In conclusion, owning a car seems like a milestone everyone wants to achieve without considering the financial responsibility and commitment that comes with it. Aside from the money that you’ll have to spend, you’ll have to be prepared for immediate expenses like repairs and maintenance costs.

Not to mention the rising costs of gasoline that are becoming a headache for motorists everywhere. When the thought of spending more and the possibility of having debt does not fancy you, better to not have a car at all and save the money for something more of a priority to you and your family.