Martin,

I look at the cost of transportation as just that, a cost. I plan around that expense and adjust as income and other expenses change.

I gave up buying cars about 20 years ago. After running a number of cars into the ground (10 years, 100K or more miles) I decided the hassle of the unexpected breakdowns, maintenance and repair and towing bills wasn't worth it.

I've been leasing my cars since 1989. I know what my costs are going to be, generally all repairs are covered by the warranty, I get free roadside service for as long as I use the car, I don't worry about one of us getting stranded when the timing belt breaks, and I get more car for the dollar. I deal with one dealer and after 6 cars with her I get the best rates and usually save $8-10K over sticker.

To buy the same car as I lease would nearly double my payments and after 4 or 5 years I've got a car that isn't worth of what I would pay in lease costs. Ain't no equity in cars.

I did buy a used car for daughter a few years ago that, even after some serious pre-deal checking, has cost me as much in repairs and upkeep as I paid for the car.

Downside to leasing in PA is the 9% sales tax, thanks Ed. (Gov. Ed Rendell).

By the way, your cost difference works out to less than $5 a day. Is the comfort and security of new car worth that?