Buy a car or go on nice vacation?
First off, please don't answer, "Do what you want to do." If I could make a choice I wouldn't be on here. I'm 25 and don't own a car. I've gone to NY the last couple years for vacation but want to go oversees, maybe England next year. I've saved up some money and could use it to put a down payment on a new car, or to go on the vacation I want. A new car would be nice and make life a little easier and is a long-term investment, but I have gotten by fine via public transportation. The car is probably the "responsible" thing to buy, however I love to travel and want to do so while I'm young and solo. I would probably be happy with either, and can't make up my mind. Looking for thoughts or what you would do.
- tiescoreLv 66 months agoFavorite Answer
Two options: Split the money into a savings account for each and start a plan to add income to those funds...
Flip a coin: Is there that little moment of disappointment? Then do the other thing.
- 6 months ago
Depends were the location is
- DEBSLv 76 months ago
"is a long-term investment" << No. It is a quickly depreciating purchase which costs you money in both the short run and the long run. Do a search on the true cost of owning a car when you add in the purchase amount, insurance, fuel, parking, & maintenance. Then compare it to what you spend on public transit and getting around now. Then balance that against the freedom a car possibly gives you to help you earn and spend money by getting from point A to point B easier.
Along those lines, would having a car make allow you to go on more vacations? That would be a plus.
- G. WhilikersLv 76 months ago
You're just asking for permission. Go get those priceless memories you might not have another chance at.
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- SlumlordLv 76 months ago
Well, if it were me and the car would make your day to day life easier then I'd get the car. If you continue to make the decisions that help you out then hopefully, some day, you'll be self sufficient. Take a vacation every year and you probably will have lots of great memories but will never get ahead in life.
- STEVEN FLv 76 months ago
I would either use it to pay CASH for a used car, or put it in savings to cover the next major home repair I need.
- vulcan_alexLv 76 months ago
How about just invest the money for your future. You use public transport so you don't need a car, and a vacation is only for those with their various responsibilities in hand, I bet you don't have that. If you don't have an emergency fund that is the first place to start.
- Anonymous6 months ago
Cars aren't usually an investment. You lose money the second you drive it out of the car yard. Go travelling while you can. You said you get by with public transport.
- Anonymous6 months ago
A car is NOT a "long term investment". A car is an anti-investment. And so is a vacation.
Car and vacation both will keep you from building your net worth. IMO it makes zero difference which you choose. Both are money losers.
You have to decide whether enriching your life experience (vacation) or making your life more convenient (car) is more important.
Are you contributing sufficient funds to a retirement plan? If not, you can't afford the car or the vacation.
- D JLv 76 months ago
Only buy a car if it is necessary for your daily life.