The most important reason for having a car is convenient transportation. A car gets you where you want to go much faster than other means of transportation. Less important reasons for having a car include that cars are fun, they can make a statement about your lifestyle, and they just look cool. If a car fits into your budget and you are achieving your other financial goals, then it may be appropriate for you to buy a car for any one of these reasons.

Keep in mind that buying a car can hurt your financial goals if you must borrow money to pay for it. When you borrow money for a car, you must use your money to pay interest, which means that your money can’t be used to earn interest or build wealth. If a car is not in your budget, it can take the place of more important goals. In addition, if the car costs more than you had planned for, making payments can become a financial burden. Before purchasing a vehicle, determine if the purchase fits into your financial plan and the costs fit into your budget.