You might save up and buy a "cheap", used vehicle for cash, only to find you have no warranty when the transmission seizes. You might not have the money to buy a used vehicle with cash. If you borrow money to buy a used vehicle, your interest rates are higher. With a good credit history (or a cosigner), you may be able to purchase a new car at a much lower interest rate. You need to do the math and determine the right deal for you.

Maintaining a vehicle is expensive. Without including monthly payments, it is estimated that it costs approximately $10 000 a year to own a vehicle, including maintenance, registration, auto insurance, fuel, depreciation, and financing charges. And this is a best-case scenario. The longer you own and drive your vehicle, the more maintenance it will require.

Think of the popular MasterCard "Priceless" commercials:

• New tires: $1200
  
• Replacing timing belt: $1000
  
• New brakes: $500
  
• New windshield: $500
  
• Owning your own vehicle: Priceless? Not likely!