How to decide if you should buy a car

Depending on where you live and how far you commute to work every day, owning a car might not be a necessity. Opting for a car-free lifestyle can not only save you thousands of dollars every year, but it can also reduce the stress of driving and keeping up with maintenance. But if you don’t live in an area with public transportation or prefer the convenience and flexibility that comes with driving, then it might be time to buy a car.

3 questions to ask yourself before buying a car

If you’re thinking about buying a car, asking yourself a few questions can help you determine if it’s the right choice for you.

1. Can I afford it?

Between car loan payments, insurance premiums and gas, owning a car can be expensive. If you’re looking to save money, using a rideshare service like Uber or paying for a monthly bus pass might make more sense. Plus, many employers are starting to reimburse workers who use public transportation.

But if you have a long commute or don’t have easy access to public transit, driving a car might be your only option. In this case, opting for a car that gets good gas mileage and maintains its value can help keep costs relatively low.

2. Are there any public transportation alternatives?

If you plan on going without a car, you’ll still need to figure out a way to get around. It could be as simple and inexpensive as just walking or biking where you need to go. But if you’re stuck in suburbia or don’t live in the best neighborhood, this may not be an option.

In that case, check out what types of public transportation are available to you and the schedules. Getting to a train station or bus stop takes time, too, so account for all aspects of your commute when considering local options.

3. Do I have a backup plan?

Before you decide against a car, make sure you have a backup plan just in case you need one in an emergency. It could be a ridesharing service that operates late-night hours or a friend, family member or neighbor willing to give you a ride. Planning this ahead of time can keep you from scrambling to find a car to use when the unexpected hits.

Benefits of owning a car

Though it can be expensive, owning a car comes with a few perks, including:

• Convenience. You won’t have to rely on public transportation schedules, you can go at your own pace and you won’t be bound to a certain route every day.
• Major time saver. Similar to the convenience factor, owning a car means you’ll be on your way immediately. If you’re the type who tends to run late, not having to wait for the next bus or train will save you time.
• Self expression. Whether you opt for a sporty convertible, luxurious sedan or rugged truck, owning a car allows you to tell the world a little bit about yourself.

Decide a car is right for you? Compare auto loan offers today

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3 reasons why you might want to adopt a car-free lifestyle

While owning a car can be convenient, there are a few benefits to choosing a car-free lifestyle:

• Reduce stress. The process of buying a car involves a lot of decisions, including choosing the right car for you, finding affordable financing and picking an insurance provider. And that’s just to get you behind the wheel. Add to that the stress of finding parking in a busy area or dealing with heavy commuter traffic every day, and you might decide driving a car isn’t worth the headache.
• Save money. The average driver spends $8,849 per year to own and operate a car, according to a 2018 AAA study. This number includes gas, depreciation, licensing fees, registration fees, loan fees, taxes, maintenance and insurance. Compared to public transit, you’ll be spending thousands of dollars more to own a car.
• Lessen your carbon footprint. Opting for public transportation can have a large impact on your carbon footprint. Rather than wasting fuel driving just yourself to work every day, you can reduce the pollutants you put into the world. This not only includes oil, but also coolant, brake fluid and antifreeze.

Bottom line

Deciding whether or not to buy a car depends entirely on your personal situation and needs. If you live in a congested city, you may find that you don’t need a car. However, getting where you need can be more difficult if you live in a rural area. Write out the pros and cons, and take a look at your budget to see if you can afford the extra expense.

Think buying a car is right for you? Learn more about how it works and compare your car loan options with our guide.

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Frequently asked questions

• Would leasing be cheaper than buying a car outright?

  It can be, though it depends on how long you plan on leasing and how much you can put down. Over the long term, buying a car is usually cheaper than leasing. But if you only need a car for a few years and don’t plan on driving often, you may be able to save thousands by going with a lease. You can read our guide to leasing versus buying a car for more information.

• How can I calculate the cost of owning a car?

  You can calculate the cost of owning a car by adding up the monthly car loan payments as well as expenses after you purchase the car such as: insurance premiums, gas costs and maintenance expenses that come with a specific model.

  Our car loan calculator can give you an idea of how much your monthly loan repayments will be based on your loan amount, APR and term. And you can get quotes from different car insurance providers to figure out how much you might pay for insurance each month.

  As for gas costs and maintenance expenses, online resources like Edmunds and Kelley Blue Book can give you an idea of what others have paid for owning similar models.

• Where can I find info about the public transportation options in my area?

  The best place to look is your city or county website — it likely lists bus and train schedules as well as frequent routes. You may also want to look into rideshare services like Uber and Lyft.