Car Buying Tips: Should You Buy a New Car or Hold On To Your Current Model

I've been giving lots of thought to replacing one of the two family vehicles in our fleet, namely, my wife's 1998 Ford Contour SE.  The Contour has only 63,000 miles on it and is in good mechanical shape; however the vehicle does not have any of the necessary modern safety features (including electronic stability control, anti lock brakes, side impact front airbags, rear side impact airbags, etc.).  In turn, I'm in a bit of a dilemma because I'd like to keep the vehicle given that it runs well, but there are two huge negatives with the car: 1., the already mentioned safety issues and 2., given that our family will be expanding soon it would be nice to have a vehicle with more interior and cargo space.  My frugal side is telling me to drive the vehicle until it dies and put safety and space issues to the side, while my analytical side is telling me to purchase a 2-3 year old, high quality/spacious/fuel efficient, used vehicle with cash.

What the process above has taught me is that it's pretty easy to make a car buying decision when you really need a new car, but it's tough to make the same decision when you have a vehicle that runs well but does not meet safety and everyday practical needs (like cargo room, rear seat space, etc.).  

When I'm presented with a tough consumer product purchase I like to lay out all of my options, including whether I will be financing or paying cash for the product and truly get down to whether I need the item or not.  In our family's case, I think we will be opting for a slightly used vehicle that has the following attributes:

1.  Good reliability, safety, and cost of vehicle ownership.

2.  Good interior space (including rear seat and cargo capacity).

3.  Good fuel efficiency (gas prices WILL go up again!).

4.  Nice, yet classic, interior and exterior styling (even us practical types like a good looking vehicle that will not age!).

5.  Good performance (a car should have nice acceleration, with low end torque for merging and moving well from a full stop, as well as good braking and handling).  All wheel drive is not a requirement, even though we live in the snowy northeast (front wheel drive with good tires will work just fine).

6.  Good value (I don't believe in car payments and like to keep cars as long as possible given that they meet most of the requirements I mentioned above, including safety).

At the end of the day it's my recommendation that you opt for a slightly used, "new", vehicle only if your current vehicle DOES NOT:

1. Meet your current needs in terms of space and utility.

2. Meet current safety standards

3. Run well mechanically (are you constantly taking your vehicle in for service?)

Have you gone through a similar car purchase experience? if so, comment below and let me know how things went!