Buying a new car is an exciting experience. But most people only do it every ten years or so. At least, that’s the idea. Modern vehicles are capable of lasting for upwards of twenty years (as long as you don’t rag them off-road), so the need for replacements is minimal.
With that said, there is a growing cadré of individuals who aren’t afraid to switch to a new vehicle every 12 months or so. These individuals love the idea of always driving a new car and prefer it to stick with the status quo.
But should you follow in their footsteps? Well, that’s what we’re about to find out in this post. We look at the question of whether you should change your car annually and the pitfalls.
The Pitfalls of Changing Vehicles Annually
The following are some of the problems you will encounter if you try to change your vehicle annually.
Higher Costs
Unfortunately, changing your vehicle annually will result in much higher motoring costs. New vehicles depreciate quickly, often losing 20 to 40% in the first year, meaning you could be down thousands of dollars even if you try to sell it back to the garage. Then, you’ll have to finance a new vehicle with the small amount of money you get from the buyer.
More Financing
Car loans last for several years. Therefore, you’ll need to arrange financing for multiple vehicles as you replace them every year.
Again, this is a problem because you’re paying interest. Car loans are expensive because lenders assume vehicles will depreciate. If you continue to spend money, you’ll struggle to move forward in terms of your bank balance, and the amount you’re paying every month will continue to increase. You could get into unsustainable debt.
Inconvenience
Finally, changing cars every year is inconvenient. You constantly have to advertise vehicles or sell them back to dealerships. You also have to fill out forms all the time and constantly update your license, insurance, and tax information. It’s a nightmare.
How To Change Your Car Annually
With that said, there are some methods you can use to change your car annually.
One way is to use full body wraps. These change the way your vehicle looks without altering anything else. It’s like driving around in a new car, but without all the paperwork and hassle that goes with it.
The more expensive option is to lease vehicles. Here, you pay a dealership a fixed monthly fee and they supply new vehicles for as long as you need them. Instead of you taking ownership, you simply rent vehicles long-term and return them for an upgrade at the end of the term.
Leases aren’t cheap but the best option for people who always want to drive new cars. You always have a new toy at the end of the year.
Finally, you can sometimes get away with changing your car every year if you use it for business purposes. Tax breaks and business leasing deals make it a more enticing prospect.