When my friends are crazy about lifting of vehicles import ban since 18th August, I welcomed a second hand car at my home.

It’s just a humble one – a 2011 model Alto K10 with an odometer reading of about 120,000KM.

This would be a shock to my friends, who have been telling me, someone of my age and status, should drive a nice car.

My brother-in-law, whom I have mentioned several times for a rich man in a car paradox, also has his recommendation for me.

It is just how the society expects of me, and not necessarily how I should believe or do. I also have my own money mindset.

Sometimes I wonder how many bad decisions in life can be avoided if we are being honest of our own financial situations.

This second hand Alto K10 will do for me. I don’t want to purchase a new expensive car. Here are some reasons:

#1. Car is Just to Travel from A to B

A car is one of the means of transportation – just for traveling point A to point B. Nothing more, nothing less.

However, advertisements did their part. Cars are now becoming a status symbol, and so much a part of identities in most people.

But for me it’s same – a means of transportation. Personally, I won’t feel proud in having an expensive new car.

I definitely won’t go with the scripts of our society. My mindset is simple: being rich is better than looking rich.

#2. I don’t Want to Lose my Money

We know that a car loses its value once it is on the road. We also know a new car will lose more – depreciation.

A second hand car in a good condition will be more depreciation resilient than a new one. If you know it, pat yourself.

Unless a new car is purchased for business to generate returns, it would be a pure no-return-expense.

And who would love to bear a huge expenditure which will in whatsoever give no returns now or in future?

#3. It’s Expensive to Get a New One

My friends have been talking so much about prices of new cars released in social media by various car dealers.

It makes so much sense. Just look at prices. A car that cost 400-500K in few years ago is now 500-700K. Let’s not even talk about SUVs!

This means most of us cannot afford purchasing a new car. But if you go with the ‘affordability’ definition of our society and banks, you will afford even if you have a negative net worth.

Just be honest about your financial situations and then take decisions. It will save you from financial mistakes that will cost you.

If I cannot purchase 5X of the same car with my own money with the net worth still positive, it means I can’t afford it.

#5. My Personal Ego can Handle it

I used to get annoyed when friends, and relatives tell me why I am being so conjus, and not drive an expensive nice car.

To be frank there were moments I thought if they are right. But over time, I got used to it – proud of being in control of my finances.

This much is already an achievement for a poor farmers’ son. I also have my priorities and don’t take pride in driving expensive cars.

Moreover, along the journey of my personal finance knowledge upskilling I have realized that, ‘by desiring less, poor man becomes rich.’

What do you think of cars? Are you planning to purchase a new car very soon? 

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