Replacing Your Car
Compared to the cost of engine replacement, the cost of a new car averages around $20,000. In addition to your trade-in, you'll have to make monthly payments for 3-5 years. If you lease a new car, you won't build up equity. With a $300/36-month lease, you'll have nothing to show for your money after three years except $10,000 worth of receipts. Apart from that, the sales tax on a new or leased car can run from $1,000-$5,000 depending on the final cost of your new car.
Is a New Car Worth Your Money?
Finance charges for a new car are also expensive. At 8%, you will pay at least $2,300 over three years. You will also have to worry about the increase in insurance costs. At the end of the day, you will have a shiny new car that you may come to love or hate - a car that will eventually depreciate and lose about 25% of its value the minute you drive it out of the showroom.