When Your Better Judgement Says No

Heeeelllllppppp!! I want this car!


Against all better judgement, I am looking at new cars again. Turns out, its not just small purchases that would be prevented if I didn't window shop, or in this case, screen shop.


I have discovered this Honda Civic that seems to be the most incredible deal. So much so, I saw the car today and took it for a test drive. It's a dream.... if a dream were an affordable, import, gray coupe. Of course, every new car is a dream compared to my beat-up, little Jetta.


So, what's the catch? Well, there are two actually.


FIRST - I can not afford a new car!! With my promotion, I should be saving my extra income for all the renovations I want to do, a rainy day, retirement. That's logical. Cars are not logical. Cars do not give you HRTC (that's Home Renovation Tax Credits for all of you not up on the hottest acronym in the Canadian reno world). They also don't bail you out when your furnace quits in February. Nor do they look after you when you're old. They don't even pay for themselves when you decide you've had enough.    

Car = Bad Investment

SECOND - I've never leased before, and this deal is a lease take-over. Leasing has its good and bad: 

Good: Low payments. Because you're not buying the car, payments are only calculated on part of the car's value. In this case, there is a cash incentive. The incentive plus what I can sell my car for brings the effective payment down even more. Bonus!

Bad: After you've paid all this interest and money, you don't own anything. Sometimes, if you choose to buy the car it costs more than if you'd decided to finance the purchase at the start. Limited kilometres; expect to pay BIG $$$$ if you go over the allowance. Damage fees: Do I start parking in the corner of every parking lot to avoid being doored?

Yet, the appeal of an almost new car is soooooo strong! It's so stylish and smooth, unlike my Jetta that doesn't even have a radio anymore. Yet, when I add up last year's bills, I still don't spend as much on my car as I would in payments if I bought a new one. Not to mention, I will still have oil changes, so my current car is still cheaper to maintain. And drive.

Jetta mileage = 850-900 km per tank of diesel (@ .91/L)

Civic mileage = 650 km per tank of gas (@.99/L)

Oh the decision... Is anyone else contemplating a car purchase? Do you lease or purchase?