Purchasing a car in today’s economy can be quite a smart investment decision, depending on the car you buy. If the vehicle has a higher re-sale value, and is not too old to have rare spare parts, then it can be a worthwhile investment. However, the question that arises to everyone’s mind is which path to take towards this purchase. People also like to buy older model cars with a high re-sale, then slowly upgrade to newer ones. However, there are also many people who prefer to buy four or five year old cars through financing done by the bank.
Thus, the main question is whether to go for the banking method or go for the manual older vehicle purchase. One of the advantages of bank financing is that the car is not going to give you many issues in terms of performance. However, when it comes to the budget, you would also need a higher one for it.
Car Purchasing in Pakistan
If you decide to go for bank financing, it is important to note that the bank also requires an initial down payment. That means that you would have to have some capital to invest initially. Then, you would select from 3-year to 5-year plans as to which one to get. However, it is also important to note that due to increasing installments each year, you will be buying the car at a higher price than normal.
While the car will be newer and you can drive it from day one, it will be priced higher than what you can eventually sell it for. On the other hand, the other method can get you an older car in a reasonable budget. With time, you can upgrade it with another car by maintaining it and selling it at a slightly higher price point. This way, you even get to experience the drive of multiple cars, you learn quite a lot too.
Viable Investment Methods
That said, we recommend going for the banking method if you have a higher budget for purchasing a car. However, if you intend to upgrade, it is also quite a viable method. It will give you quite a lot of cars to work with, and you can upgrade and alter them as you like.
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