Eduard Conti, economist and financial advisor: "A car can become a financial drain; you shouldn't spend more than 10-15% of your income on it."

Discovering the true cost of a car can be more surprising than expected. When faced with a purchase of this magnitude, we take into account a number of obvious parameters—starting price, financing , fuel consumption, etc.—but we forget about other expenses that appear over time and test our financial balance. In fact, few consumer decisions involve such a huge emotional burden and, at the same time, so many unexpected expenses as buying a car.

Eduard Conti, an economist and personal finance specialist with extensive experience advising families, analyzes why owning a car is too often an automatic decision that deserves much deeper reflection. In his experience, rethinking this choice saves money and worries, and may be the key to discovering alternatives that are perhaps more convenient for many families.

Is having a car really a necessity?

In some cases, yes, especially when public transportation doesn't adequately meet daily needs . But in others, having a car is more of a habit or even an excuse. We're socially accustomed to having one. And there's another factor we shouldn't overlook: the irrational component, since for many people, having a car is simply part of their life script.

To what extent does it represent a financial effort for families?

According to the INE (National Institute of Statistics and Census), Spanish families spend 11.6% of their spending on transportation, and 90% of that amount corresponds to private transportation. This means that the car accounts for, on average, 10.5% of household spending. But of course, this is an average. In low- or lower-middle-income families, this percentage can exceed 20%, which is very high. It is advisable not to spend more than 10-15% of monthly income on the car.

Why is it so difficult to contain this spending?

Because emotional considerations often prevail. When we make financial decisions, we veer between analytical and impulsive. And with a car, emotional considerations win out. It's a status symbol. Some people say, "I'm not going to buy this car because anyone can have it." That need for differentiation leads us to spend more than we should.

What mistakes do we make when calculating the real cost of owning a car?

The main reason is that we don't calculate it correctly. We only think about gas or electricity, but there's much more: maintenance, repairs, taxes , insurance, unforeseen expenses... And the great forgotten: depreciation. If you buy a new car for €20,000 and sell it five years later for €12,000, you've lost €8,000. That €1,600 per year is also part of the cost.

Why don't we take that depreciation into account?

Because we don't see it. Since there's no direct payment, it's not perceived as an expense. But it's a real and very significant cost. It directly affects the comparison between options: new car, used car , leasing... If you don't consider everything, you can't compare accurately.

What impact has the market had in recent years?

Vehicle prices have risen dramatically . Ten years ago, depreciation wasn't as noticeable because the purchase price was lower. Now, with prices so high, the loss in value can be much greater. In addition, electric and hybrid vehicles come into play, and we still don't know how they will depreciate in five years.

What would be the correct order to decide whether to buy a car?

As an economist, I would always start by figuring out how much you can afford. But most people do the opposite: they look at cars, get excited, and then try to fit the purchase into their financial reality. The right thing to do is start with your income, your expenses, see how much you can allocate, and from there analyze options. Even without being an expert, nowadays you can make a fairly accurate estimate with the help of artificial intelligence and certain applications. And above all, don't dedicate all your savings to the purchase or resort to credit without having calculated the real impact of the monthly payment.

What do you think about renting, now that it's so widespread?

It can be a good option, especially for people who can take advantage of it tax-wise, such as the self-employed. They pay a fixed monthly fee for 3, 4, or 5 years, which includes insurance, taxes, maintenance, and more. In terms of financial planning, knowing what you'll pay each month helps a lot. Plus, you avoid surprises and can better plan your finances.

And what risks are there with car loans?

They're very high. It's normal to pay 8–10% APR on car loans, when a mortgage can be as low as 2%. The automotive sector has become a financial business . Brands prefer to sell on credit because they earn on interest. Before signing anything, you should carefully consider how much that monthly payment will cost you over 6, 7, or even 10 years.

And read the fine print carefully…

True. Often, the fine print of contracts hides a high down payment or a high final payment, and this distorts the perception of the real cost. It's a shared self-deception. The dealership quotes a large monthly payment, which seems manageable, and in the fine print hides the down payment of 10,000 euros and a final payment of another 5,000 euros. You see it, but you prefer not to look. It's as if you want to be fooled a little, because it allows you to justify the emotional decision to buy the car.

What role do insurers play?

People tend to act passively, but you should review the terms every year. We're seeing increases of 15-20% even if you haven't had any claims. Sometimes, just one phone call can save you €200. And there's another important aspect: when you take out a third-party policy to save money and then have a claim that isn't covered, you can regret it. Peace of mind also comes at a price. And it's worth planning ahead. If you find out two months before renewal, your brokerage can negotiate a better premium.

What advice would you give to someone considering buying a car?

Be realistic. Practice financial self-awareness. Don't go completely broke, don't buy on credit unless strictly necessary, and above all, understand that every euro spent on a car is a euro you can't spend on other things: a vacation, a home improvement project, your children's dental treatment... Many families aren't aware of what owning a car really costs them. Furthermore, having a car that's rarely used can be an unjustified luxury on tight budgets. You have to ask yourself if you really need it or if it's a decision driven by habit or status.

So, is having a car a luxury?

It may be a necessity, especially if you rely on public transportation and live in poorly connected areas. But as a financial decision, it should be a conscious one. Owning a car is legitimate, but you need to understand the overall cost of the vehicle's entire lifecycle. If you don't plan well, the car can become a financial drain that lasts for years.