How many family cars do you own? A lot of families have two cars and once you get used to it, you might think that you can’t live without that second car. But even though there are a lot of benefits to having two cars, there are plenty of disadvantages that you should consider as well. If you are thinking about buying a second car or you have two already and you’re considering getting rid of one, here are some of the pros and cons you should know about.
The most obvious reason to have a second car is that it’s convenient. If one of you needs to pick the kids up but the other one wants to do the grocery shopping, sharing one car makes things a bit more difficult for everybody. With two cars, you don’t have that problem and it’s a lot easier to manage your schedule.
It’s More Expensive
The biggest downside to having two cars is that it’s more expensive. When you add up the cost of insurance, fuel, tax and maintenance, owning a car isn’t cheap. Multiplying that cost by two can put you in a tough position when you are trying to stay on top of your family budget.
You Have A Backup Plan
If your finances are strained, your second car is a useful asset that can get you out of a tight spot. There are some great companies that will give you an instant offer on your car so you can sell it right away. That lump sum of cash is so valuable if you are struggling with debts and when that money is tied up in assets like cars, you won’t spend it on anything unless you really need it. So, in that sense, you can consider your second car to be an emergency fund.
They Lose Value
This is a problem that you experience whether you have one car or two, but it’s worse with two. As soon as you drive a car off the lot, it depreciates in value a lot, which means that you are losing money on your investment. When you buy two cars, that loss is doubled so you should think about whether that money would be better spent elsewhere. The same money that you spend on a car could be put into an investment account, for example, where it would increase in value instead of losing value.
You Have A Backup Plan
Most people rely on their cars and if they are out of action, it can put you in a difficult spot. If your car breaks down or you are in an accident, having a second car can be a real lifesaver. You still have a car to use while the other one is getting fixed. If you only have a minor problem that can be fixed in a few hours, you don’t need to worry too much. But if you need extensive repairs that will take days to complete, you will be thankful for your second car.
Having two cars can sometimes be a blessing, but there are also some big downsides, so don’t assume that you always need a second vehicle.