When is a Car Deal Really a Deal?

Isn't it nice when the government wants to giveemotions involved with driving your brand new
you thousands of dollars to buy a new vehicle?car. This is usually why people buy new cars
Or how about when car dealers run fabulousbefore their old ones are truly "used up".
specials that you just can't resist?The Federal- Finances - When the repairs on your old "classic"
"Cash for Clunkers" program begs the question:start exceeding the cost of a newer vehicle, it's
when is a "deal" really a deal?time to move on. Or, perhaps it is simply time to
My sister and her husband recently faced thisdown-size to a less expensive vehicle. The need
question. Their 15-year-old truck decided to breakand financial reasons seem pretty straightforward,
down again. They were faced with a decision -but how do you respond to an emotional desire
either spend money on an expensive repair orto buy a new car? When the new car bug hits, I
buy a new truck. When the "cash for clunkers"pull out my calculator and start to compare the
program started, their decision was easy. Theycost of a new car to other emotional things in my
are now the proud owners of a brand newlife. The vehicles I want to buy usually cost about
vehicle and really benefited from the $4,500$300 more per month than keeping our old truck.
rebate.The lower maintenance and better gas mileage of
My husband also has a 16-year-old pickup trucka new car is quickly outweighed by the higher car
with over 100,000 miles on it. Only once did it getpayments, higher insurance, and higher excise tax.
better than 15 MPG. The truck does not haveBy keeping the vehicle we already own, we save
much value on the used car market and certainlyabout $3,600 per year. Whenever I feel the "new
qualifies as a "clunker". Could this be a goldencar urge" I ask myself if there are other things in
opportunity to take advantage of themy life that I could do with $3,600. When nothing
government incentives? But wait, does this makeelse tops the list, a new vehicle will appear in our
good financial sense for us?driveway. Until then, the thoughts of what else I
Deciding when a car deal is really a "deal" is usuallycan do with $300 each month tends to dim my
based on need, emotion, and finances.emotional desire for a new car.
- Need - Why do you need a new (or new toRebates, tax incentives and "free cash" are all
you) vehicle? My sister had a definite need, sincegreat. But never allow such promotions to diminish
the old truck was used for the family business.the need to carefully consider your needs,
Other needs might be caused by a new driver inemotions and your financial situation. If all
the family or new baby in a car seat.indications point to a new vehicle, happy driving! If
- Emotion - There is a reason most of us like thenot, enjoy the money you are saving by balancing
"new car" smell. There are a lot of positiveyour desires with life's other pleasures.