Some New Cars Now Cheaper Than Used Cars

>> In tough economic times it makes sense to maximize every dollar. So why would you finance a car if it makes sense to maximize every dollar? This comparison of monthly payments is what almost every car dealer wants you to see -> focus on the monthly payment and not the bottom line which is that you are buying a car you can't afford and the additional costs of financing a vehicle are crazy. This mindset is part of the problem we have in this country -> financing big purchases instead of saving and paying for them thus avoiding interest charges. Time to pick up some books by respected personal finance counselors like Dave Ramsey and learn how to manage money instead of focusing on the "monthly payment" Welcome to crazytown.

@fireman949 I agree. The problem here is the numbers are crunched with ZERO down payment and ZERO trade-in -- that makes no sense. Only a few very young buyers have no trade-in at all. Of course, some people are so money-foolish, they take their money from a trade-in or sale, or the insurance settlement from an accident, and SPEND IT, and then finance the car out the wazoo. I've seen plenty of despairing folks at dealerships, when they are told they are now "upside down" on their car or "underwater" and that they have ZERO equity to either buy another one, or even get out of a bad car payment/lease. However, the system is heavily geared to this kind of buying and "non saver" mentality. I know people who have simply awful credit scores (under 600), no cash, heavy debts and a lousy payment history (late pays), and they waltzed into a dealership and signed for a brand new (leased) vehicle on what were honestly pretty sweet terms (a brand new loaded Ford Escape for $199 a month). Meanwhile me -- honest, hardworking, thrifty, saver -- who has ALL CASH to buy a decent USED vehicle -- has had nothing but misery in the same time period....being treated as a loser and idiot by dealerships, who act like an all cash deal is "cheating them" of the money from a financing deal....who won't bargain on prices (not even a few hundred dollars)....who are stubborn and rude. I have been thrown out of dealerships, had cars sold from under me, been forced into bidding against other buyers, etc. When I walk out -- as recommended by most books and advice sources -- they NEVER follow. They do NOT want to sell a decent car for a fair price (cash) to an informed, smart, savvy buyer. They DO want to sell new cars to cash-strapped idiots, who prefer to live their lives in debt. And Americans often get their "self esteem" from having the nicest, newest car of the "right" manufacture (Japanese or German) or the "right" model (SUV, hybrid) and if you don't adhere to this -- if you drive an older car, a frumpy model (minivan) or don't trade up every few years, you get mocked. Seriously -- I have been laughed at and ridiculed by family and neighbors -- for driving "junkers", for being "cheap", a penny-pincher, etc. Soooo....just sayin'. There is a reason for all this. Also, if everyone lived like I do (or you, presumably), the big car makers would likely go broke and out of business. They exist by EXACTLY these business practices.