If you’re anything like most people you’ll have been dreaming about your perfect car since you were a child; perhaps you’ll have had posters or magazine cut outs pasted on the wall next to your bed... looking forward to the one day you were old enough to drive and obtain your dream car.
Unfortunately, financing our longing for possessions isn’t always as effortless as we would like, so in this article we look at the three most popular options when it comes to turning your dream car into a reality.
BUYING YOUR DREAM CAR OUTRIGHT
Owning a car might seem like the most obvious choice, however, it’s important to remember a car is a depreciating asset that rapidly loses its value, particularly in the first year, meaning if you buy a brand new car, then as soon as you drive it off the forecourt you can expect to lose four figures in terms of instant depreciation.
For this reason, it might be better to look into buying an ‘almost new’ car that has been driven just a few thousand miles. You will still have the prestige that comes with driving a new car but without the inflated price tag.
Buying a second-hand car seems to be one of the smartest moves you can make if purchasing a car outright yet the downside is that owning an older car can come with a fair amount of hassle. Indeed, many people share their horror stories of buying a second hand car only to have it sat in the auto repair shop a few weeks later, as they quickly discover it has many hidden problems. This is particularly true of auctions and private sales.
This is the downside of owning the car yourself; if something goes wrong with it, it’s your responsibility and you assume all the risk.
It might seem a strange idea to consider renting a car, as an alternative to owning one, but if you don’t often use it, then hiring a car could prove to be a good option. The great thing about this is that you can rent a different car model each time, if you wanted, as often the fun wears off once we get used to a car so it can be good to have variety.
Also, when you consider how much insurance costs the idea of renting a car that usually comes with fully comprehensive insurance can end up saving you a lot of money, particularly for inexperienced drivers.
LEASING YOUR DREAM CAR
You can find some incredible offers on a variety of premium cars for a typical two-year period, though there are many short-term premium car hire options available too that mean you can treat yourself for the occasional weekend if you prefer.
Leasing contracts tend to be for 1-3 years and can offer a hassle-free, low-cost option, but the downside is you never end up owning the car, so it’s a bit like renting a property - in that you’re not building any equity in the asset and the money is consumed rather than invested.
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