Buying a new car is something that many people in the present day view as an unnecessary expense. With the amount of belt-tightening going on as a result of the global financial crisis, there are many who view going for a new car as an extravagance, a luxury purchase that will only lead to greater difficulty in the future. Are they right? Well, as with many such broad questions, the answer just isn’t that simple. There is more to consider than the up-front expense.

If you can get a good deal on a new car loan – and such deals still exist – then there are many reasons why buying new now of all times could be seen as a smart move. The economy is still in a trough, and prices are in stasis as a result. If your own financial position has been relatively unaffected by the crisis, then now is the best time of all to buy new. Financial recovery will occur at some point in the next few years and when it does, prices will rise to reflect that situation. Prices which include second-hand resale value, just when you may be considering a trade-in. The big question is whether you feel you can afford the monthly payments. If you have that kind of wiggle-room, then go for it.