Amen. My DW and I took the "no new cars" pledge years ago. At 25K miles/year, it made no sense for me. I pay cash for something nice but used, drive it until it dies or needs a costly repair, and go pick out another, whatever strikes my fancy, or looks like a good deal. It doesn't matter much, since I can easily get something different if I don't like it.

I donate the old one to charity or some needy person who can do repairs, or knows someone who can do repairs for them. I can do the basics and follow a Chilton's, but I don't like doing repairs. My mechanic is probably the most expensive around, and is known for his nationally syndicated radio program, but his work is always right and I trust him implicitly. I'm willing to pay for that, and for the certainty that my wife is driving a safe car.

Not only do I save on car payments and interest, I save on insurance, too, since I carry liability only (albeit with very high policy limits). The secret to this is to put a little aside every month in lieu of car payments.

As a general rule for new cars, I was taught that if you can't put at least 20% down, NOT including any trade-in, and pay it off in 3 years, you are buying too much car, and you'll certainly end up owing more than the car is worth.

Jeff