Should you buy a car amid hiked fuel prices?3 min read
How important is it to consider the fuel price when buying a car? As it turns out, very! The last few months have witnessed a continuous increase in fuel prices. This has applied tremendous pressure on household budgets. As cars have become a necessity rather than a luxury, most car owners and potential buyers are finding it difficult to cope up with the rising expenses. So, would it be wise to buy a car amid hiked fuel prices? Let’s consider the following questions.
How does fuel price affect your expenses?
According to experts, when using your car for work commute only, you are likely to spend 35-40% of your monthly income just to pay for the fuel. While hiring a cab or renting a car would cost lesser. Therefore, owning a car is a wise decision only if you have to travel long distances and do not have to take a loan for the purchase.
On the other hand, many believe that with an increase in people’s disposable income, a surge in their monthly expenses due to a fuel price hike won’t make a big difference. That being said, the decision to buy a car doesn’t depend on the fuel prices alone. Consider your finances, utility, availability of enough parking spaces, and your requirements to reach a good decision.
For any individual planning to purchase a new car, the overall cost of ownership adds up to more than the fuel prices alone. These expenses include repair and maintenance, parking, incidental costs, depreciation costs, loan EMIs and more. Managing all these expenses can become difficult for them in the long run.
What is the impact of rising fuel prices on automotive manufacturers?
The rising fuel prices have not only affected people’s buying decisions but also increased the competition in the automobile market. Car manufacturers are now focusing more on fuel efficiency and cost-effectiveness. Moreover, this can prove to be beneficial for you if you are willing to buy a car – as it will allow you to get a better deal on a fuel-efficient vehicle, without worrying much about the fuel prices.
As a result, you can also expect to have more options available in the market, making it feasible for you to buy a car amid hiked fuel prices.
Read Also: 5 Best Cars for People Who Can’t Park
Is there a sustainable alternative? Enter electric cars
Electric charging stations are popping up all over the globe as citizens slowly shift to cleaner alternatives to fossil fuels, While an EV demands a higher upfront cost, it provides huge savings in the long term as it runs on a rechargeable battery.
As petrol and diesel cars become more expensive, these savings are sure to make electric vehicles a viable choice for you.
Even with the rise in oil prices, there is no correct answer to knowing whether it is good to purchase a car or not. To begin with, understand your needs and associated expenses to be incurred in a month and determine your usage to reach a feasible decision.