From a financial point of view, I’d get a used Lexus, Accura, Toyota, or Honda, and pay cash for it.

But car purchases can be emotional and few of us can be rational. In 2001 I bought a brand new Mustang, mostly because I liked its shape. I thought (or “knew”) that a Toyota, even a used one, may have been more reliable.

My car was a newspaper ad special at $14.9K (a V6) and it came with 0% APR for 60 months. I put only $500 down (!) I made my last payment over a year ago, the car now has only 52K miles, and looks/runs like new. Never any problems. I do take care of it, though.

A similar story with my wife’s Subaru. Both cars are paid in full, and they are well maintained. No thanks, no car payments for me!