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Needs vs. Wants
Needs are the necessities of life such as food, shelter and clothing. In
today's world, transportation is usually a need. If you cannot walk or
take public transportation to work and shopping, a vehicle is a need for you.
Wants are things we would like to have, but which are not necessities. You
may want power locks and power windows on your vehicle, but unless you have special needs, these features probably are not necessary to fill your transportation
needs.
Do you need a luxury car or basic transportation? Do you need a new car
or just a reliable one? Often there is a lot of "want" mixed into our
needs. It is important for you, and anyone else involved in your transportation decision, to distinguish between your actual needs and your wants. Being able to recognize the difference between needs and wants will help you to prioritize how your vehicle dollars are spent.
Taking the Initial Steps:
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First, distinguish between your needs and your wants. Consider purchases that put your needs before your wants.
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Do your research before you buy. Determine the features that
you must have to fill your needs.
Needs
"Needs" are things that you cannot survive without. For example, if you
have two children, then a vehicle with more than 2 seats would be a need.
Some needs are also known as "must haves". They are assumed to be a basic essential. When buying a car, you would not ask if the car has four wheels, but you most certainly need them!
Wants
Wants differ because they are based on our perceptions. Although they
are not absolute needs, they can be high up on the priority list. Using
the example above, wanting power locks in your vehicle might be a high priority
if you have children, assuming that you believe power locks would make the
vehicle safer.
The lowest level "want" is a "like." There are things we like that we may not be able to afford. They are the "nice-to-haves" that are icing on the cake. For example, your needs may be met with a Toyota, but you might like a Lexus.
Sometimes you don't know what you like until you see it. These are "surprise likes." When buying a car, surprise likes can cost you a lot of money! This is why it's so important to do your research before you shop for a major purchase. Figure out your needs and wants then make a list. Once your list is completed, you are ready to research the price of your car.
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