Cars are important for a thriving circular economy. If you live in a city, public transportation is usually the most convenient and environmentally friendly. However, if you live outside the city and want to participate in a thriving circular economy owning a car is often inevitable. It simply is the best way to get around, interact with the community, and help support your local area.
Get an e-car if you can afford it
Today, in most places the choice of getting an electrical car makes a lot of sense, as the cost of driving is often heavily subsidized or even free. However, few can afford the initial investment of a new e-car. In fact, as dinbudget.se says: buying a new car is seldom a good investment.
The reason is that cars lose a lot of value as soon as they are used. In order to get a cheaper car the market requires a lot of volume of used cars. The market for e-cars is simply not large enough at this moment for it being a sound choice for the poor man. In fact, when you buy a car you aim to hit that sweet spot of cheap and reliable. So, at this moment, most often the best choice for you is a traditional car. But keep your eyes open, as I said, there are plenty of places where owning and driving an e-car is virtually free.
Financing a e-car: What You Need to Know
Buying a car is a major investment for most people. While some may be able to pay for a car in cash, many others opt to finance their purchase. Financing a car means borrowing money from a lender and paying it back with interest over time. If you’re considering financing a car, here’s what you need to know.
- Determine your budget: Before you even start shopping for a car, you need to determine how much you can afford to spend. Look at your income, expenses, and other financial obligations to determine how much you can realistically afford to spend each month on a car payment.
- Shop around for loans: Don’t just go with the first loan offer you receive. Shop around and compare interest rates, loan terms, and fees from different lenders to find the best deal.
- Consider a down payment: A down payment is a lump sum of money you pay upfront to reduce the amount you need to borrow. A larger down payment can help lower your monthly payments and the total cost of the loan.
- Know your credit score: Your credit score plays a big role in the interest rate you’ll be offered on a car loan. Make sure you know your credit score and work to improve it if necessary before applying for a loan.
Financing a car can be a great option for those who can’t afford to pay for a car upfront. Just make sure you do your research, understand the terms of the loan, and have a clear understanding of your budget before signing on the dotted line. In some European countries, like Norway, Sweden and Germany, it is possible to include your car loan in your house loan. If you have this possibility, think about using this option, since the interest rate will be much lower.
How cars are important for a thriving circular economy
So what does owning a car have to do with circular economy? As we spoke about in a previous blog “Circular Economy and You” it is vital to engage with your community. It is important not only to meet people and participate in events. Cars are also important for help move goods and other items that are the core of a circular economy. It might seem counter intuitive, but in want of practical alternatives, ensuring a vibrant circular economy will itself have spill over effects that outweigh the downsides of traditional fuel cars.
So keep on driving, and keep on finding exciting projects to execute.