I am amazed when someone who is barely getting by decides to run out and buy a brand new car. First, it is money dumb to buy a brand new car. You sign a loan to pay $20,000 for the new car. But as soon as you drive the car off of the lot, the car is worth $18,000. So you lost money. If you sold the car as soon as you drove off of the lot, you would still owe $2000. That is money DUMB!
But it is really DUMB to buy a brand new car and make payments when you are having a hard time paying your rent and other bills that you need to live. The argument that is most often made is that "I need a car to get back and forth to work, so that I can pay my bills." True, but you do not need a brand new car.
The next argument that I will save money on repairs with a new car. Really? Does the cost of higher registration and insurance payments approximate any occasional repairs that you might have to make? NO!
Common sense says buy only the car that you can afford and rarely that is a new car.
