When Cars Become A Liability
A lot of people in the Philippines invest in cars. An average brand new car would cost around P800,000. On the other hand, second-hand vehicles could be bought for as low as P300,000.
Given the country’s transportation woes, the idea of a private car is becoming more and more attractive. But when you have cities such as Manila that have been dubbed as the gates of hell because of hellish traffic conditions, does having a car still make sense? It is imperative to know when to determine if the car is becoming a liability on your part.
When does a car become a liability for its owner?
When the cost of gas outweighs the comfort it provides
Value-added tax in the Philippines has hiked the price of gas over the years. In addition to this, deregulation laws allowed gas companies to adjust their prices without any problem. If you purchased an older car, it is a possibility that you spend more on gas. Given this scenario, you have to ask if you are spending more than the comfort and convenience you receive from your car?
Cost of parking
How much is the cost of parking in your workplace? If you’ll park your car for an entire day, it is a possibility that you are spending around P100 or more every workday. Though there are instances when you can park your car for free, there is a chance that you risk the car from getting stolen or vandalized.
If you bought a 5-year-old car, for instance, remember that problems may start appearing from this point on. Aside from the cost of your car’s maintenance and engine problems, you also risk getting towed in the middle of the streets.
Traffic problems can be annoying. In fact, it has an economic impact. Billions of pesos are lost due to the fact that we couldn’t travel from one place to the next in a very convenient manner.
Cost of accidents
Now another problem that you may encounter when you have a car is an accident on the road. Not only are you leaving yourself prone towards doing damage to other people’s property, but you may also even injure someone if you are not that careful.
But what if you are a responsible and defensive driver? Unfortunately, given the conditions in the Philippines, you are dealing with untrained drivers of public utility vehicles which still leave you vulnerable. An accident could easily cost P50,000. Now, if you don’t have the money for these scenarios, it makes perfect sense that you assess why you are getting a car.
If you really want to have your own car, it is a good idea that you evaluate your options. For instance, if you spend so much time on the road, why not get the right car insurance to minimize the cost of risks that you are exposed to? Also, it is a good idea to use apps such as Waze to have an idea of where to pass.
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