should I save $ 10,000 or buy a car?

Question

i'm 26 and dont really need a car... but still want to buy 1
It an investment. no??

Answer 1

Always remember, instant gratification comes with a price. Don't buy a new car if you don't need one. Find a good place to put your money to make more money. Have you ever noticed that extremely wealthy (old money) people often drive older cars. When you can really afford it, it's not as important. My son is 30 years old and never had a new car. He just bought a Maserati, but only after buying a home first and starting his own business. You'll feel wonderful when all your friend's cars are scrap metal in some junkyard and you're able to buy what you want. Start watching Suze Orman on T.V. or reading her books, she gives great financial advise.

Answer 2

A car is NOT an investment. It depreciates some huge percentage the minute it leaves the lot--bad return on an investment any way you look at it. But a car because you need a car, there are better ways to invest money.

Answer 3

Unless you are buying a classic car that is in good shape, or that you will put into good shape, cars make lousy investments. Even used cars quickly lose values. New cars are even worse!

Figure out your goal for the money, and when you'll need it.

If it's needed in the short term, like less than 2 years, put it in a CD or a savings account at one of those online banks that pay over 5% interest.

More than 2 years, I'd recommend a balanced mutual fund (one containing about half bonds and half stocks).

More than 5 years, invest in stock mutual funds of all types.

I'm linking to two sites below to help you find the highest paying CDs and bank rates for short term money.

Answer 4

A car isn't an investment in that the value will go down each year. If you get a new car and keep it in perfect shape and running order, for 25 years and longer then it will pay off the older it gets provided it's in mint condition. :-)

Other than that, I would say if you don't *need* a car right now, then save up your money for the day when you may really need one. :-)

Answer 5

for the most part, no, buying a car is not an investment. most cars go down in value over time. if you don't really need a car, you would be better off talking to a stock broker and putting your ten thousand dollars in mutual funds, so if you need a car five or ten years down the road, you will have more money, and you will be able to afford a nicer, more reliable car. the money could also be used as the down payment on a house on down the road, as houses, unlike most cars, ARE good investments.

Answer 6

A car is not an investment, the moment you drive it off the dealers lot you have lost half the money you paid for it. Save the money, a CD or a saving account. Add to it and start now. By the time you're 40 you can have a car, don't spend all your money and wind up living from paycheck to paycheck, or living to pay off your debts. Good luck.

Answer 7

A car is not an investment. It loses value by the day. And costs money to maintain - insurance, repair, parking costs. An investment gains value.

My friend Crissie once said a car gets better looking when it's paid free and clear. She is right.

If you don't need the car, don't buy the car.

Answer 8

If you have the option to, you should save your money. Cars are not investments, but houses are.
Once you drive a car off the lot, the value goes down while things like houses gain equity.
If you find that you need a car, save $7,000 and purchase a used $3,000 car to compromise.

Answer 9

If you have other debts.. pay them off with the 10K.

Cars are not investments... they depreciate in value as they age. If you don't need a car, save the $10,000 and invest it in something like a mutual fund.

Answer 10

Buying a car is definately not an investment. I bought my car for 9000 and now it's worth about 2000. I would suggest meeting with a financial planner and investing it.