Buying a Car...Ugh...

I used to love buying cars. I used to buy a new-to-me car every couple of years. And practice makes perfect. My friends even took me with them to help pick a car and haggle. 

But now...It's been 10 years since I bought a car. And I'm overwhelmed. 

New or used?
Buy or lease?
Finance or cash?
Want vs. need?

My brain tells me buy a used car with cash that's reliable. That means no bells and whistles and a level of uncertainty, because the car will be at least 10 years old. 

The external world (a.k.a advertising) is telling me that I'm at a point in my life where I deserve more; that my car is a reflection of who I am and how successful I am; and I need a new car, all of the amenities, with the highest possible gas mileage, that suits my lifestyle. 

But no amount of advertising can change the fact that a car is an expense. A liability. And at the end of the day, I need to minimize the cost of this item. But I don't want to minimize my upfront cost so much so that I incur a lot of back-end expenses (and time) at the mechanic. 

Best way to minimize the overall cost, is to buy used and let someone else take the big depreciation hit. And honestly, I'd prefer a car that has a few dings and scratches, because it looks stressful, constantly worrying about keeping a car perfect. 

New car out. Used car it is. 

I'm bombarded with advertising that gives me numbers that challenge everything I think I know. Lease a car for $2,000 down and $99 a month! What? Really? How? I'm interested. No, wait. I know a lease means I'm just renting the car...but that could actually work for me, right now. But they want a 3-year commitment...that doesn't work for me.

Leasing out. Buying it is. 

My car cash savings is enough to buy me a good enough car, but there will most likely be some visits to the mechanic. Which I'm not keen on. Then, I see ads that confuse me again because they're telling me I can buy a new 2013 car for 0.0% APR. That's free money! I could save/invest the money I was going to spend and make money! That would be awesome! And I get a brand new car. Wait. The fine print says I have to pay $16.99 per month for every $1,000 I borrow. Isn't that basically 1.6% interest? How is this not false advertising? 

New car out again. Mostly cash, plus a little financing to get a slightly newer and slightly nicer car. 

We have our budget. We know we want a hatchback because it fits our lifestyle (this is the only part of car advertising that works for me). Now we need to sort through the comparisons: reviews, true-cost-to-own, insurance, fuel costs, maintenance, make, model, etc...

Do you love your car enough to recommend it? 

-Leah Schonlank

The other big determining factor to consider when buying a car is how long you want to keep it. But that's a whole other story. 

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