Are you in over your head with your car and its expenses? How much of your monthly income is going to support that four wheel money pit in your driveway? Do your car payments resemble a mortgage payment? And does the insurance bill look like a past due tax statement from the IRS?
Why are spending so much on your car? Do you think the neighbors are impressed? Does it make you feel good about yourself to drive a flashy car? Is it important what other people think?
What if you had bought a cheap used car? But if the costs of repairs on a cheap used car are driving you to the poor house, was that cheap used car so cheap after all? Maybe it would have been a better off to have bought a slightly more expensive used car that would not come back to haunt you later with repair costs.
I am a firm believer in not spending more than you can afford on a car. A car is NOT AN INVESTMENT. A car is a depreciating asset, which means it loses value as you own it. We all know that brand new car loses about 20% of its value as you drive off the dealer's lot. Even true "collector" cars are only worth what the market will bear. Prices will fluctuate with demand and the whims of the general economy.
Do not get me wrong, I love cars. If money were no object, then the object of my desires would a rich variety of car for me to lavish my time and attention upon. But there is also a practical limit to how much of my income can go to a discretionary expense like a car other than a basic transportation source. In my case, I need reliable wheels to get to work and shuttle the kids so I bought a new 2003 Honda Accord LX back in 2002. Boringly practical, it suits my need for size and utility. No sunroof, no leather, no four wheel disk brakes, but it carries five people and plenty of luggage while delivering over 20 mph in the city.
Boring is the operative word when describing the 2003 Accord. But I have an ace in the hole... my hobby car. My 1987 CRX Si is my secret automotive weapon. Basically a stripped down Honda Civic with just two seats, it is the car that I have poured my time and attention into. Bought used from a suburban Mom who no longer wanted it for $900, I have improved the car's performance to the point that it now delivers the same power to weight ratio of a new BMW costing 50 times as much. So I have performance and low cost all in my second car. And I can afford both of them.