From the TGIF 2 Minutes Archives… with an update on buying cars for kids.
There are few things as exciting as getting a new car: the “new car smell”, the test drive, sound system, sunroof, heated seats… the feeling of “everything is new”. And these days cars are advanced computers on wheels and can be very cool.
With that said (back in mid-2021) yours truly bought a new car – the first new car in 15 years! The 2005 (Certified Pre-Owned) B-mer went 180k miles and could have gone another 100k but with too much maintenance. It was time for a new vehicle. But what new car to buy? New or used? Sedan or SUV? Buy or lease? And the cost: go expensive or go reasonable in cost?
Any major purchase – housing, appliances, transportation, kids’ education, family vacations, etc. – needs to be evaluated both from a financial and emotional perspective. The emotional side is fairly obvious, but the financial side has both obvious and not-so-obvious factors. Cash flow considerations are obvious and not-so-obvious too.