The car we drive says a lot about who we are to the outside world, indeed, as material objects go, what we drive tends to be judged more than even the house we live in; this is because it’s seen as such an obvious tangible representation of where you are in life.
That said, obtaining your dream car can be a financially tough experience for people, as most “dream cars” are not particularly affordable. For this reason, many people choose to boost the appeal of their existing car by enhancing the looks and performance – as this tends to be more accessible. For instance, getting alloy wheels finance tends to be a lot more manageable and affordable than buying a brand new car.
The other thing many people focus on is how to maintain their existing car in order to keep it in tip top shape, so that it performs just as well as newer models.
In this article we look at the three most popular routes to driving your dream car, weighing up the pros and cons of each from a financial perspective.
OWN YOUR CAR
This is perhaps the most realistic choice for new drivers, as a lot of rental and leasing companies require the driver to have held their licence for a minimum of two years. There are also financial benefits, as whilst a car is a depreciating asset, meaning it is losing money each year – at least it is yours, and you can sell it on, at a later stage.
Whereas, renting a car is a lot like renting a house; once the money is spent for that month, it is spent, and you don’t have anything left to show for it – whereas, if it’s your own house (or car for that matter) you have something you can sell on at the end of the term.
Buying a brand new car can be an expensive option as there are a lot of fees to pay, and the car loses a significant proportion of its value as soon as it is driven off the forecourt. For this reason, buying a nearly new car would make a lot more sense, as you still have the benefits of driving a nice new car, but you are getting much better value for money.
RENT YOUR CAR
If you are over 25, then renting a car can be a very fun experience that doesn’t cost too much. You can rent a car from the age of 23 (twenty-one in some places) but often this is subject to a young driver surcharge which makes renting a vehicle much more expensive.
That said, when you consider how much insurance costs – renting a car that comes with fully comprehensive insurance, particularly if it’s a fast car in a high insurance group, can actually end up saving you a lot of money, particularly for inexperienced drivers without a no claims bonus.
LEASE YOUR CAR
Leasing is a great option of acquiring your dream car, however, similar to renting a car there tends to be quite strict criteria for new drivers – meaning you might struggle to lease a car in the first few years of driving, or at a young age, but it is possible… and you’ll be amazed at what great deals you can get on premium cars through leasing.