- Photo Credit: Tobias A. Müller

Finance, Finance, Finance: How Easily Attracted We Are

15w ago


Although car sales figures for April 2019 are half of what they were in April 2018 in the U.K, the way cars are bought have stayed relatively the same. When buying a car you basically have two options- buy the car with cash outright and drive away knowing that all you have to pay for is the expected bills such as maintenance, fuel, insurance etc as you have paid for the car. Or you can finance/lease the car which although they are many different routes on how to finance a car, in simplistic terms, it involves you putting down a deposit and pay for the car in monthly payments. More and more it seems that cars are bought with a finance option, instead of buying a car upfront, as it can be more affordable, which is understandable. However, what I have noticed recently is that a lot of younger people are throwing themselves towards a car on finance-maybe too far.

In my hometown, the most important thing about the car is its appeal or simply how flash the car is and in vulgar terms, how much money do you have? A Mercedes, BMW, Audi? Perfect! Even though it has a rattly diesel engine and is probably slower than most cars, it looks cooler when driving around posing of course. For example, I was speaking to a friend who is around 21 and has recently financed a Mercedes CLA AMG Line Diesel. Yes, it looks an impressive car, but as a petrol head, not something you'd buy to thrash on an Austrian mountain pass. He then continued to say that he pays roughly £350 a month for the car and will be for the next 4 years. After this statement, I couldn't help but think why? Yes, they are significantly more expensive cars to finance, with car finance the sky is quite literally the limit. However, considering this friend was an apprentice and only made around £1000 a month. Is the car really worth it?

I've realised over the past year or two as friends my age (roughly 20) start to get jobs, their first main purchase is to buy a materialistic car so that they can pose with it. However, the problem is that a lot of people, especially younger folk, push themselves way too far that they can afford and unfortunately, can barely afford to live and will be like that for the duration of the agreement. Thinking of buying a house? A plush holiday? Moving out of your parents home? Forget it. All in the name of having a expensive motor to drive around the local McDonalds.

I have no problems with people buying a car on finance because in some cases, it makes perfect sense to buy on finance rather than flog out a vast amount. However, it could be said, that finance has made the car industry just a materialistic melting pot with it not being used for it's intended use and instead to show 'artificial' wealth. Especially in the younger generation like mine, which highlights this problems the most.

I hope I haven't put anybody of finance, all I'm saying is don't buy a car to sadly pose in; don't push your budget too far. To be honest, if I wasn't a student and had a job, I would most likely have a car on finance.



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