It is predicted that within ten years 96% of all new cars will be bought on finance. It’s hardly surprising because car buying trends have been moving this way for many years now. There are a number of reasons for this.
Rewind a couple of decades though, and it was very rare for someone to purchase a car in such a way. How things have changed.
Despite everyone doing it, however, we see this kind of buying mind-set as somewhat of a worry.
The reason we are concerned about this is because it is yet another avenue of debt that people are quite happy to go down. We’ve run articles upon articles about how debt is ravaging our families and societies and how we, as a nation, seemed destined to live in a debt cycle. We’ve also written about how people have become accustomed to purchasing things that they cannot truly afford with the buy now, pay later attitude.
And here we are again. People want the very latest cars with all mod cons but cannot afford them outright, so instead take on many years’ worth of debts in order to have the very latest flash car. Whilst this is not the reason everyone gets a new car, it is the majority. We have to remember that a proportion of people do buy new cars over old because they want the safety of a 3 year warranty in case of breakdowns. In these instances, sometimes in does make more sense to buy new and on finance.
How did we get to this stage as a society? How and why do people think that it is better to have the latest car than it is to be financially secure?
In our opinion, people need to stop being so greedy and put financial stability at the top of the priority list.
Debt is normalised these days. So many people are in debt that is isn’t treated as the big issue that it actually should be, and that is where we are failing as a society.
People need to prioritise saving as opposed to splurging. For some reason, people these days seem completely unaware of the importance of planning for retirement and the future. Yet in generations gone by, it was vitally important that people planned for life after work.
This modern attitude to money is going to blow up in people’s faces eventually. There’s no doubt about it.