Ah, yes. I remember when I took the plunge and bought a new car of my very own for the first time.
I also remember getting an earful from many of my readers after I wrote about it. Of course, I should have expected it; most of my readers are financially savvy individuals. They know that those who are not only more than happy living without that new car smell, but also willing to pay for occasional maintenance and repair costs, typically end up getting the best deals when they buy used instead of new.
That being said, it’s also true that, despite the conventional wisdom, there are very few financial rules of thumb that are 100% sacrosanct, applying to all people all the time — and that includes the oft-repeated mantra that says the only car you should ever buy is a used one.
After all, there’s a reason why we call it personal finance. What makes sense for me might be completely unreasonable to you, if only because our financial situations are light-years apart.
In my case, there were more than a few reasons why I felt it made perfectly good sense to buy a new car instead of a used one, including:
- I was offered ridiculously-cheap (almost free) financing
- I already had a fully-funded savings account
- I plan on keeping the car for at least a decade
- I could easily afford it
As I’ve written many times before, the bottom line is that being financially responsible and buying a new car arent necessarily mutually exclusive. In fact, there are times when financially responsible folks can get away with buying a new car — even though the conventional wisdom says that isn’t the most financially advantageous option.
Ultimately, however, the “right” decision is going to depend on the state of your personal finances.
Photo Credit: moto123; Infographic: Wheels For Wishes
Spend your money the way you want. Financial responsibility does not mean never, ever treating yourself, just that you don’t treat yourself at the expense of your financial security.
I felt that way even before this month, when my husband decided to buy a new truck. Nine years ago he bought a used 2003 truck with 74,000 miles on it for $15,000. It had been in an accident, but he felt the damage was not bad enough to walk away. He traded it in with 305,000 miles on it, just starting to require pricey repairs.
Could he find another used truck and possibly have the same good luck? Sure, but we have ample savings and can well afford the payment, especially with the financing terms. Chances are he’ll keep this one 15 or 20 years or more. And after 24 years of working his butt off and living well beneath his means, he’s walking around feeling like he’s finally getting his due. It’s worth it.
I know exactly how your hubby feels, Amanda! Thanks for sharing that.
I have never paid $45 for an oil change, where are these average people having them done anyway? All the chain oil change shops constantly put out $20 oil change coupons – in fact it’s cheaper to have them done at that price than doing it yourself.
In fact we go to a local shop that’s been in business forever, but he sells Firestone, so he puts out – and accepts – their coupons and deals.
We have a 2007 Camry that we paid $14K for in 2010, and it is fully loaded with all the options – heated seats, Bluetooth, vsc, sunroof, etc.
So an average price of $11K NOW for a car that is seven years old seems awfully high.