"An intelligent heart acquires knowledge, and the ear of the wise seeks knowledge.
(Proverbs 18:15)
Given that after your home, cars will be the second largest thing that you purchase, speaks to the importance of gaining as much knowledge as we can before we set foot onto the car dealer's lot.
The first decision to make is to soberly view your finances and arrive at a final price that is reasonable and within your budget. And you know from reading this post over time that I encourage you stay out of debt if at all possible, but if you are stuck, and must take a loan out, do not let it be for more than 36 months. If a car loan is longer, you will owe more than the car is worth until the last few months.
I encourage you to purchase and not lease a vehicle, a lease is merely rent and after the period you have to turn in the car with zero to show for it - and possibly have to pay more for high mileage or other stipulations. Purchasing your car, you'll own it outright and can choose to sell it or trade it in towards the cost of your next vehicle.
The next decision to make is to buy new or used... I encourage you to be open to pre-owned vehicles, a new car loses about half its value in the first few years. You can buy 3-5 year old cars that are in "like new" condition at a huge discount from brand new.
Thanks to advancements in engineering, manufacturing, better materials and improved lubricants, the average lifespan of cars has increased substantially over time. The current average in the U.S. is over 16 years and 150,000 miles, so you can purchase a 5-year old vehicle (at a large discount) and receive over a decade of service on average.
Another drawback to a new vehicle is the increased insurance expense (which you also have to make room for in your budget), for the insurance company to cover the replacement cost of a new vehicle, which in June 2025 averaged over $48,000.
Once you determine your needs for the type of vehicle, do the research extensively and let it lead you to the most reliable models in that class. At the end of the day, the most important thing is that it gets you safely to your destination - don't fall for buying a slick-looking design that does not have reliability... it will not look as good on the side of the road with you waiting for the tow truck to arrive :-).
With online technology we have an enormous advantage from the past to easily locate many prospective cars in our area. When you're down to zeroing in on what may be "the one" for you, handle it this way:
- When taking the first test drive, obtain a comprehensive vehicle data report and even consider a second report from another provider to confirm the information.
- Wait and take a second test drive the next day, this gives you time to assess the first encounter, sleep on it and allow the Lord to provide direction.
- After the second test drive, have a local mechanic do an inspection of the vehicle. If the seller will not allow it, consider moving on to another seller. An inspection is a reasonable price to pay versus the cost of the car to make sure it does not contain an unknown repair or issue not evident from the test drives.
- Then, if you still feel peace from the Lord, go in confidence.
Your insurance expense is one of the big chunks to owning a vehicle. To maximize your dollars in this area of necessity, do these things:
Unless you are 100% satisfied with your carrier, shop around and see what your rate can be for the same coverage elsewhere. Continue to do this annually.
Pull out your policy, read it, understand what every piece of coverage represents and determine if you need each of the areas that it covers, such as road service, car rental, medical, etc.
Especially be scrutinizing the deductible amount on the policy. A low deductible means higher rates. Consider raising your deductible to lower your rates and pay for the smaller occurrences yourself.
Then, take good care of your vehicle, mindful of the amount you have invested in it to begin with. Stay on top of oil changes and routine maintenance, and even consider taking classes to learn how to handle the basics on your own and save the money. There are local community education classes (an example of one is in the link below) where you can learn how to repair and maintain your car in less than a day.
https://denvertoollibrary.org/automotive-classes
You can also view online videos to assist in performing some basic repairs or replacements - specific to your vehicle. This tool has helped me work through some tricky circumstances.
And lastly, when considering everything with the second largest item you will purchase, remember to stick with these words from Proverbs 4:6 :
"Do not abandon wisdom, and it will watch over you. Love wisdom and it will protect you."
God Bless you and may He show Himself greatly to you,
Paul
