Replace Or Rebuild ? - Replace

Does it make economic sense to buy a new car?

• The average new car costs around $20,000. In addition to your trade in, you'll have to make monthly payments for 3 to 5 years (and, of course, a new car loses about 25% of its value the minute you drive it out of the showroom).
• Sure, you'll have a shiny new car you may come to love or hate. 
• You get a new-car warranty. 
• Finance charges are expensive. At 8%, you get socked for $2,300 over 3 years. 
• Insurance costs will probably go up. 
• You could lease a new car, but you won't build up equity. With a $300/ 36 month lease, you 11 have nothing to show for your money after 3 years except $10,000 worth of receipts. Excess mileage is costly. 
• Sales tax on a new or leased will hit you for $1,000 to $5,000 or more (depending on where you live). 
• You may gain new options like a CD player or sunroof.