Should You Buy a Car When Fuel Prices are High?

by Bogie

Buying a new car is one of the aspirational buys for people here in the Philippines. It is one of the goals for people who have increased salaries and want to live the dream they want for their lives.  While it is good to own your dream car, fuel prices are skyrocketing these days. The big question now is, should you continue to buy a car even if fuel prices are high?

According to the news, some Filipinos continue to buy new cars despite higher fuel costs, but the skyrocketing prices might eventually drive interest toward hybrid electric vehicles or HEVs. (Philippine Inquirer.Net news)

Higher fuel costs would not necessarily mean that people will no longer buy a car. I guess it really depends on the need of an individual. Some people would consider using Public Utility Vehicles others would prefer the convenience of having their own car and the accessibility of being able to go to places without hassle. 

The Right Car for You

You may want to set some goals before getting a new car as fuel prices are very high. You have to make sure that it suits your needs in the years to come and it will truly make the best value for your money.  When you are prepared, things will be easy and stress-free for you in the long run. Here are the top three questions to ask to help you find the right car that suits you.

1. What Are Your Needs?

The first question to ask in looking for a car is what do you intend to use your car for? Is it for city driving, off-road, or for long drives? You may also want to consider how many passengers to need to carry, cargo capacity, and what other features you need. You have to do your research.

Since high fuel price is an issue these days, you may also have to consider what kind of vehicle will help you save more on fuel costs.

2. How Much is Your Budget?

You have to know how much you will spend on the car that you want. If you plan to pay for your car through financing, you may have to consider how much you can afford for car payments each month. You will also have to consider car insurance fees, maintenance fees, and most of all fuel fees. This means you will have to calculate everything before making a big decision.

“Most of the common mistakes people do is buying a car without having a realistic understanding of how much more it will actually cost to own it. Hence, they end up spending too much and exceeding their budget. ” -CNBC.com

3. New or Used?

The next thing to consider is whether to buy a new car or a used car. That will surely depend on your budget. 

New cars are more expensive and they tend to depreciate faster. Used cars on the other hand are cheaper but some cars are prone to maintenance repairs. You have to weigh the pros and cons but you can still find used cars that are sold by dealerships. In this way, you will have the assurance that these cars have been through rigorous inspections and are still in good running condition.

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