Car ownership has long been a rite of passage - a symbol of independence and freedom. Having your own wheels allows you to go where you want, when you want to, without relying on anyone else. However, owning a car can be costly - so, is it really the best option for you right now? Let’s explore the pros and cons of car ownership, as well as some of the alternatives available in 2023.
The pros and cons of car ownership
There are many benefits to owning your own car - from convenience and flexibility (goodbye public transport reliance) to control and the ability to recoup your car’s resale value. When you own your car (as opposed to leasing, subscribing or ridesharing), you can maintain it as you see fit, and customise it to your liking. This is particularly attractive for those who see their car as more than a means of getting from A to B, or really appreciate what is going on under the hood. If you take good care of your care, you can often sell it later on for a great price, depending on its age, make and model.
On the downside, buying a car is also a considerable financial investment. You’ll need to consider upfront costs plus the hassle of ongoing maintenance, insurance, repairs and more. In the majority of cases, cars also lose value (or depreciate) over time, meaning you won’t generally get back what you paid when it’s time to sell.
Alternatives to car ownership
If the cons seem to outweigh the benefits, there are alternatives to car ownership. The first is financing a vehicle - as this helps to break down the overall cost of the vehicle into manageable payments. With finance, you can expect to pay the price of the vehicle plus interest (usually ranging between 6% and 20%, depending on your individual circumstances) over a period of up to 7 years (usually).
With most banks and lending institutions, you’ll also need to consider additional monthly lender and broker fees and then there’s ‘break’ fees if you’re wanting to pay off your loan early. These can add up to thousands of extra dollars, depending on your loan term and lender.
That’s why when it comes to finance, it’s a great idea to consider all your options. Online car loan comparison platforms like CarClarity can help you find the finance arrangement that works best for you.
Just remember – when financing or buying a car outright, you’ll need to factor in additional running costs including insurance, registration, depreciation, servicing and other maintenance costs.
A second option is a vehicle lease. You won’t own the car, but the cost of use, maintenance, insurance and registration is rolled into one easy regular payment, and you’ll need less money up front to get into a new vehicle. There are many pros and cons to both leasing and finance, so take some time to consider whether these options are right for you.
A carbar subscription = ultimate flexibility
We’ve covered a few alternatives, but there’s one more.
A carbar car subscription service offers the best of both worlds. Similar to a lease, you can get into a new fully-maintained and comprehensively insured car for a simple weekly subscription cost.
There are minimum costs, but no minimum terms - unlike a lease. Just give us two weeks’ notice and you can swap your car or stop your subscription at any time.
If you love your subscription car and want to own it, you can also now purchase your beloved subscription car when it works for you. Unlike any other car retailers in Australia, carbar customers can retain weekly payments and seamlessly switch their carbar subscription to a loan arrangement thanks to our latest partnership with car loan comparison platform, CarClarity.
The best part? You don’t even need to decide straight away. A car is a big purchase, so we allow our subscribers to switch to finance once they’re ready. Taking some time to try before you buy could save you money, time and hassle in the long run.
We’re adding new cars to our fleet every week – whether you choose to subscribe, finance or buy.
The choice is always yours.
