At present, many people are facing the financial dilemma of "zero savings and high debts", and for them, whether they dare to take the risk of buying a new car in this situation has become a difficult question worth pondering.
1. Analysis of the current situation
1. The current situation of zero deposit and high debt
According to the latest data from the People's Bank of China, by the end of 2023, the per capita savings deposit balance of mainland residents was 68,000 yuan, a year-on-year decrease of 3.2%. The per capita loan balance of residents reached 41,000 yuan, a year-on-year increase of 8.9%. This reflects the current situation in which many households have little savings left, and even cannot make ends meet, and are in high debt.
2. Lack of cash flow and high repayment pressure
Against the backdrop of high debt, the cash flow situation of residents is also worrying. According to the 2023 White Paper on China's Household Wealth released by the China Banking Association, nearly one-third of households have insufficient cash inflows, and 20% of them cannot meet their daily living expenses. [2] This has undoubtedly exacerbated the repayment pressure of residents, making them more cautious about buying large durable goods such as cars.
2. Risk assessment of car purchase
1. Affect the quality of life
Although cars can improve the convenience of life, the cost of purchasing and using them cannot be ignored. According to authoritative estimates, the annualized cost of a family car is between 30,000 and 50,000 yuan. For families with limited incomes, this expenditure will undoubtedly significantly reduce the standard of living.
2. Limited sources of funds (loans, installments
For car buyers who lack sufficient down payment, bank loans and car installments may be the only option. However, due to their lower credit ratings, they often only have access to loan options with higher interest rates, increasing the burden of future repayments. ［4］
3. (Successes and failures.)
There have been many precedents for indebted families to "grit their teeth" and buy cars. Some people pay off their loans quickly with hard work, but others end up being crushed by debt and have to sell their cars to pay off. [5] These vivid cases are worthy of our reference.
3. Discussion of other options
1. Delay the purchase of a car
For families who are struggling to afford to buy a car, it may be wiser to put a hold on to their car purchase plan. Waiting until your financial situation improves before reconsidering buying a car will be much less risky.
2. Used car market
Used cars are relatively affordable and are also a good option. However, before buying a car, you need to know more about the condition of the second-hand car to avoid falling into the dilemma of "hindsight". ［6］
3. Expert advice (financial planning
Regardless of the choice of car purchase, it is important to take the advice of a professional financial planner to make an informed decision by taking a comprehensive assessment of your family's finances.
Fourth, the analysis of the motivation for buying a car
1. Job requirements
For a career, having a means of transportation is a must. For example, real estate agents, couriers, etc., the efficiency of their work largely depends on the convenience of transportation.
2. Convenience of life
In addition to the needs of work, the convenience of life is also the reason why many people choose to buy a car. For example, picking up and dropping off children to school, taking care of the elderly, etc., it is undoubtedly more convenient and faster to have a private car.
3. Personal reasons
There are also people who buy a car purely out of personal hobbies, such as a preference for special models such as sports cars and off-road vehicles. This is the freedom of personal consumption, but it still needs to be done within one's means.
5. Decision-making suggestions
1. Weigh the pros and cons
For indebted households, the decision to buy a car requires repeated trade-offs. From an economic point of view, buying a car will undoubtedly add to the financial burden; But from the perspective of convenience, car ownership may also be necessary.
2. Rational decision-making
On the basis of weighing the pros and cons, car buyers need to make rational decisions, have a clear understanding of the family's financial situation, have a full estimate of the risks, and have a reliable plan for the source of funds.
3. The future
Even if you can't afford to buy a car today, you shouldn't give up on your plans. As long as we abide by the principle of rationality and make reasonable arrangements, we will be able to realize our dreams one day.
For people who are struggling financially, whether or not to buy a new car needs to be carefully considered. Only by comprehensively assessing risks, weighing the pros and cons, and making rational decisions, can we avoid falling into a larger debt quagmire and leave room for manoeuvre for future financial reconstruction.