Pros and Cons of Buying a Car in Today's Economy

The first thing to consider is: Do you need a new car? Well, maybe not a new one, but one needing fewer repairs and better gas mileage.

It is very tempting to go out and buy another car in order to save money on gas, but there are several things to consider.

1. The dealers are willing to make great deals. (or so they say). There are all kinds of incentives offered from low interest rates to gas cards for a year.

2. Gas prices are declining but it only takes a decision by OPEC to cut production to send prices over $4.00 a gallon.

3. The stock market is recording record losses. Is a GREAT DEPRESSION only days away? All indicators are pointing in that direction. Money you have may be needed for food.

4. Credit is expensive. Even if you get a great price on a car you may not be able to afford the financing. Banks are being very, very careful about loaning money. Even people with good credit ratings are being forced to accept high interest rates.

5. How many tankfuls can you purchase for the cost of a new car payment per month?

6. Car insurance rates are on the rise due to the economic chaos.

7. If you are a gambler you may go ahead and purchase but the odds are against you. Jobs are being lost in the hundreds of thousands. Competition within your own field or company is increasing. The best employees or those with connections will be the last to be laid off.

8. How much is comfort worth to you. A newer small, gas economy model means sacrificing room and optional luxury equipment.

9. Consider the savings in fuel you would really achieve. If your present car gets 22 miles per gallon and the new one gets 25, is it worth the higher payment.

10. Are there things you can do to achieve better mileage or drive less?