Posted on: 10 January 2017
Millennials have a reputation for being savvy and money smart. It's not that they count all their pennies so much, but that they make sure they make shrewd business and daily life decisions. What can everybody else learn from their approach, therefore, when it comes to cars?
How You Spend Your Money
Whenever you buy a car outright you are taking command of a depreciating asset. This means that the vehicle will be worth less in five year's time than it is today. When you consider that for the majority of the time that vehicle will be parked outside your house or in a garage, it might not make too much sense for you to invest your money this way. If you question that assumption, just sit and think for a moment exactly how few hours in a given day you're behind the wheel – and it is a sobering thought.
Do You Need a Daily Car?
If you live and work in a city location, as an increasing number of Australians do, then you may like to consider whether you should own a car at all. Many millennials have come to that conclusion and simply get a car when they need it. It's far better for them to pay to rent a car whenever they need one to go away for a week at the beach, or have to travel inter-city to a business meeting.
Furthermore, when you exercise this kind of fiscal awareness you realise that you have more money to apply when it comes to renting those cars. Many people are therefore opting to upsell and to really take advantage of the driving experience when they rent.
In short, they're deciding to rent a luxury car instead of a simple runaround. In this way, they really take advantage of that weekend away at the beach and may have the opportunity to impress somebody special as part of the journey. As they don't have to consider long-term operational and maintenance costs in this situation, they can certainly justify the budget required to rent a more upscale, luxury car instead.
Making a Choice
So, if you want to take a leaf from the book of the millennial, consider whether you need to buy a new car when it's that time again. Perhaps you can manage by using public transport on a daily basis and simply renting a luxury car when you need it.Share