Should you buy a car when gas prices are plunging?
Should you buy a car right now? During the last quarter of 2014 to the first quarter of 2015, we’ve witnessed continuous roll back from gas companies. Recorded on February 2 2015, gas price has already depreciated 123 days straight. The price of gas is now at $2.06 a gallon in the US.
In the Philippines, the price of gas has plummeted as well prompting public utility vehicles to lower the fare. Should you buy a car now that the price of gas is at an all-time low over the last few years? If you are somewhat considering the idea, here are some things that you still want to check first.
How do you intend to use the vehicle?
The first thing you should consider is the manner how you are going to use the vehicle. For instance, are you planning to make use of the vehicle for your small business? Or perhaps, you are planning to take a long out of town trips? If so, then perhaps, buying a car right now is a practical thing to do. With the current gas price, you’ll definitely get the most of your vehicle if you use it this way. For those who are simply looking to have a vehicle for work, you are still going to have a decent amount of savings.
Specification of the vehicle
Before you even rejoice with the possible savings that you are going to have, you may have to consider the specification of the car you are planning to have. Why is this an important thing to look into? If you will have a V8 vehicle for instance, this would defeat the purpose of saving on gas. Though you can actually save some cash since gas is cheaper per liter, its consumption is still something that could bore a hole in your pocket.
Up to when is the price this way?
Over the last few years, economists speculated the price of oil to simply go up. The price of oil in the world market is affected by several factors. For instance, it is affected by the amount of oil produced by countries that are members of the OPEC, or by the presence of a nationalized refinery in a particular country. Up to when will the price of gas remain this way? No one really knows.
Conclusion
Since gas prices have plunged in different parts of the world, having a car may look like a good idea. Despite the fact that you can travel cheaper at this point, you still have to make sure that you have foresight on what you are going to do in case the price of gas hikes back up. For instance, buying a gas efficient car makes a good idea. This is where you can maximize savings.
As a rule of thumb, if you are still undecided about whether or not to have a car now that gas prices are down, you want to make sure that you are evaluating your budget. You want to stick with a car that you could afford. You want to have the necessary funds not just for monthly amortization, but also for insurance and gas regardless of the price range.
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