They might offer you $4,000 cash back, 0% 60-month financing, no payments for the first 3 months, forgiveness of your remaining lease payments…..new car manufacturers will do just about anything to get you to buy a new car these days, just short of giving it to you for nothing. 

Make no mistake, despite all those attractive offers, a new car is going to cost you plenty. Buy a $30,000 SUV at 0% for 5 years and its still going to set you back $500 for each of the next 60 months! You may also have to write a check for a couple of thousand in sales tax, fees and your insurance rates will most likely increase. Remember too, the finance company can demand that you carry higher limits of liability that could cost you even more. This of course is assuming the dealer gives you enough for your current car to pay off any existing loan. If not, you could be stuck with even higher payments. 

Cars manufacturers and dealers are masters of illusion. The will convince you that a new car is the answer to all your dreams and if you buy one, it will make you rich, powerful, more good looking and get you will get a beautiful passenger to ride along beside you. Beware, new cars may do many things for you but they will not make you rich. Just the opposite in fact, they can drain you wallet faster than you can drain the gas tank, despite how good or irresistible the deal seems. Cars are a huge expense and brand new cars are the most expensive of them all. 

But everyone wants to drive a nice car. Sure they do, and they can. Car dealers are flooded beyond capacity with just off lease, low mileage, and well-conditioned cars often complete with attractive warranties that are just like new. Even without the bargain financing and lease options, over the long run, these cars a can save you thousands of dollars.  

Sp before you get sucked in by all the advertising glitz and the showroom glamour, stop for a moment to think about what you are committing to. For as soon as you drive that brand new car off the dealer lot, it becomes a used car. Consider buying a slightly less than new car up front, be just as happy and drive around with more cash in your wallet
 
Joe Simpson CPA , is an author and self-proclaimed “personal financial therapist”. If you are in need of help, Joe is available. Just send him a e-mail at JoeNYCPA@msn.com to schedule an appointment.