Often when you're living month-to-month without savings it's feasible to buy a new car but not a used one. The loan terms on new cars are usually more favorabl

Often when you're living month-to-month without savings it's feasible to buy a new car but not a used one. The loan terms on new cars are usually more favorable and you don't have to worry as much about something expensive on the car failing and leaving you without transportation. I was a couple months out of college when the old car I owned needed about $3000 in repairs that I didn't have. My options were payday loan, buy a new car, or buy a much cheaper used car and hope that it didn't end up needing $3000 in repairs. New car was the easy choice, and I fully understood at the time that if I could scrape together $3000 it would be much better to repair the car I owned. It's like buying cheap sneakers from Walmart that you know won't last. Doesn't matter if it's a bad decision if that's all you can afford.