College is over and there is a good chance that the run-down 1989 Cutlass Supreme you inherited from your grandma is clutching onto life with everything it has. The smell of accumulated pizza sauce and hot wings has permeated the fabric and no amount of Febreeze can get it out. You are probably back home and driving around town to various job interviews, parking inconspicuously in the back of the office park so no potential co-workers can see your ride.
You’ve seen all of your other friends with new cars and wondered to yourself why you haven’t jumped on the bandwagon. If you are struggling to find work or are stuck in a transitional job until your career starts, you should put off on purchasing a brand new vehicle. But if you do find yourself in an entry-level position, the time is prime to make the investment in a new automobile.
Low Interest Rates
With the current economic downturn and American car manufacturers struggling, they are looking to unload product as quickly as possible. This means that you can get a Chase Freedom loan or an advance from a local credit union very easily. It also means that the dealer will be willing to take a good deal off the sticker price in order to get the car off the lot.
In high school, most of us were lucky enough to have a car that actually got up hills. Sometimes it wouldn’t make it all the way to class and we would park it at McDonald’s and skip school altogether. This kind of behavior doesn’t fly in the professional world. Having a new car to not worry about will guarantee you won’t miss work due to inconvenient maintenance issues. The only thing you may have to pay for is regular scheduled maintenance for the first few years, which most dealers will offer free for the first two years.
Accidents happen and health insurance isn’t cheap. Brand new vehicles are equipped with the latest ABS, seatbelts, rear collision defenders, and side passenger airbags. While defensive driving will get you far, you can never count on the other people on the road.
You may not want to think about it, but office politics are real. People are going to judge you based on the way you dress, act, and socialize no matter how you perform your actual assignments. The office is not your family or friend, but a totally new element of people you need to learn how to deal with. Having a new car will show your co-workers that you take pride in yourself.
You are about to enter a world full of frequent flier miles and cash back credit cards. You are going to receive a lot of offers for credit cards and you should start making investments in order to build up your credit for further down the road. While renting an apartment or house is as easy as paying the rent, a new car will be your responsibility to maintain, clean, and upgrade.
Making the decision to purchase a new car isn’t something to take lightly. Get some financial consulting or talk to someone who knows a lot about cars before making a decision. Also, make sure you pick a car that you are going to want to drive for the next 7-10 years while you are making payments. You don’t want to get stuck with a bad decision.
This has been a guest post. Hope you enjoyed it!
My name is Derek, and I have my Bachelors Degree in Finance from Grand Valley State University. After graduation, I was not able to find a job that fully utilized my degree, but I still had a passion for Finance! So, I decided to focus my passion in the stock market. I studied Cash Flows, Balance Sheets, and Income Statements, put some money into the market and saw a good return on my investment. As satisfying as this was, I still felt that something was missing. I have a passion for Finance, but I also have a passion for people. If you have a willingness to learn, I will continue to teach.