Oil Price Collapse – Is It a Great Time to Buy More Cars?
With neon signs flashing all–time low prices of gas coupled by the equally cheap down payments and easy car ownership schemes, it’s tempting to buy more cars. But before you think about getting a new vehicle to add to your already commendable fleet, think about the impact of oil price collapse to the economy and your finances first.
Oil price collapse may bring a sudden surge of celebration among motorists and consumers as commodity prices go down, but just think of its long term effects. Drop in oil prices affects shale extraction and offshore drilling. This means that jobs in these industries are under threat. Some decrease in oil prices is good, but extreme reduction and for an extended period spells disaster in worldwide economy.
If your income is dependent on shale extraction or offshore drilling, you are among those who are worried for the future. Obviously, you shouldn’t be thinking about car purchases at this time. However, if you are not working for oil companies and related industries, you should still consider the long-term effects of oil price collapse to the economy. If you already have a couple of cars, think twice about increasing your private fleet.
Reduction in oil prices also staves off the need for renewable sources of energy. Why strive for sustainable and renewable energy when oil is cheap? This ultimately impacts the design and manufacture of eco-friendly cars. Highly discounted oil prices eventually overshadow efforts to counter global warming and decrease carbon footprints. The human race slides back to being cruel to the environment, and it buying another car, which you rarely use, is one way of hurting Mother Nature.
There is every reason to stall your dream of buying so many cars despite the decreasing prices of oil. Of course, this doesn’t mean you shouldn’t buy a car at all. If you do need one, by all means, purchase a car for yourself and your family. But if buying a new car means adding another unit to an already very extensive fleet, just mainly for showing off or wasting fuel, we suggest you stop and think first. Think about the long-term effects of car ownership to your pocket and to the environment.