This article is strictly for the young millennials (and probably just a previous generation to the millennials) who are about to buy their new car.
I am going to put forward a case for your perusal.
This is probably against your social dream of buying a car.
And, No, it is not related to environment safety or global warming.
It is for your selfish, personal financial betterment. Or so I think…
Why should you buy a car?
So here are the reasons you may wish to buy a car:
- You have no better option than a car for daily commute
- Public transport is not that great in your city
- You have a big family which requires traveling more than 3 times a week
- You feel a sense of achievement buying a car. All your friends own one. Or even better, you are the first ones in your group to buy and post a pic on facebook
- Other social pressures – attract the opposite gender, societal norms such as you must have a car if you are getting married etc.
The first three points focus on the utility of a car, and probably you SHOULD BUY one if such is your requirement ?
But if those three requirements can be settled by car pooling, public transport etc., then for God’s sake, PLEASE DON’T BUY A CAR!
Btw.. if even an iota of your reasoning consists of 4th or 5th points, then I just have to say, “I PITY YOU”.
I pity your idea of achievement and your depressing life in the chains of a dumb society.
Okay… Enough of ranting… against pity-worthy people ?
Going back to the idea of not buying a car, I suggest you put in all that money in Bitcoin.
Or by all means, diversify – Invest in Ethereum, Zcash, your favorite ICO, your choice of stock or mutual fund. (here are 5 super promising coins other than Bitcoin to check out!)
SO MUCH MONEY IN RISKY ASSET SUCH AS BITCOIN!!
Yeah, you heard me right.
And I am going to give a very strong reason for that now.
Single Biggest Reason you should invest in Bitcoin
(or some other cryptocurrency/token of your choice) rather than a CAR
While bitcoin, other cryptocurrencies and related products are very risky, they also have a high chance of delivering huge, and I mean OBNOXIOUSLY HUGE, returns in, say, next 10 years.
On the other hand, your car is definitely going to be worthless in the next 10 years.
And that is not a probability, cars require maintenance and it is a depreciating asset.
There’s a huge possibility that in the next 5 years you would have already sold a car and would be looking to purchase a new one.
So, if you do not have an optimum utility for a car, then don’t buy one.
Invest the money you would spend on a car
“But I would not make full payment of a car. I would pay EMIs.”
Okay.. then invest the money as you are paying in EMIs.
“Can I invest in Stock Market rather than Crypto Markets?”
Why I mentioned cryptocurrencies as an investment was to show the high risk that comes with it.
It is a very new arena and is so risky that your investment could be valued ZERO in the next 10 years.
And same will be the case with your car!
SO, please go ahead and invest in your preferred asset class.
If not anything else, you would learn the nitty-gritty of investing.
Heck! if you want, go spend that money on an amazing vacation with loved ones.
Create memories. Live life.
But don’t spend that hard-earned cash on a car!
Further motivation to NOT buy a car:
- It makes you fat!
There are several studies, as the one by John Pucher of Rutgers University, which shows that owning a car makes you fat.Yes, yes ‘correlation doesn’t mean causation’, but you cannot deny that commuters walk less after buying a car.Car reduces physical exertion to a huge extent and inactivity leads to obesity.I don’t have to convince you on that, just look at the ones known to you who bought a car.
- It increases frustration! (unless you are driving on a smooth, long, traffic-free highway)If you are living in a city with a lot of population and traffic, you probably have an idea of frustration a stupid driver and traffic jams can create.And when you don’t get a parking slot… Aaargh! my personal irk ?
- It makes you fat!
My point is – why would you leave a chauffeur driven Uber for a high cost, high maintenance frustration? (I am not being paid by Uber to say this)
And why would you waste money in buying a car if you do not have a utility?
Be smart. Money attracts money.
Disclaimer: This post is just to make people aware of the utilization of their money. If someone decides to invest money in cryptocurrencies, it is expected that they will take the full onus of their profits and losses.
Be smart, live well.