Buying a car is never an easy decision. The last car that I purchased was back in 2011. It was more of a need than a choice to purchase a car. The last car I had at caught a fire for about 3 times in one year. Whatever the problem was I will go and get it fixed repeatedly. The last time my car caught on fire was in 2011 and this time it really put fear in me. I decided to buy a car because of safety reasons. During this time, the economy was trying to get back on a good foot. I have a job at the time. Even though I had a job, it still was going to be a burden to pay for another car. My credit was not so good at the time. Therefore, I had to get special financing. I called many dealerships that has special financing.
Microeconomics
On an economic scale was not in the family budget. One of the things that had to be considered was pricing of a new vehicle. This included the cost of the vehicle the financing of the vehicle and the duration to own the vehicle. One thing that played a big factor in purchasing the vehicle was the bad credit that I had. I know the interest rate was going to be very high due to this factor.
“According to Economic Freedom Americans, continue to lose economic freedom. Following declines in seven of the past eight years, the United States this year has equaled its worst score ever in the Index of Economic Freedom. Ratings for labor freedom, business freedom, and fiscal freedom have flagged notably and the regulatory burden is increasingly costly”.
Buying a car used to be so easy at one time. All dealerships will have the same vehicles at the same price. In today's market with the economy the way it is you may go to one dealership and another dealership may have the same vehicle but at a different price. This makes the buyer very skeptical about purchasing a new vehicle due to the economics; many buyers have bad credit because they are unable to make payments on time or are unemployed. In 2011, the economy was trying to make a comeback. Before we purchased the vehicle in 2011, we had to take all of this in considerations. My husband was just been laid off his job for about a year.
The Dealership made double money on the vehicle because the price was higher. Although, the interest rate came close to equal the amount of the vehicle and the monthly notes were very high it did not matter. However, the need of having a reliable vehicle was greater than the price of the vehicle worth. I had to purchase the vehicle in order to keep my job and be able to get to the job.
Finances was a struggle for the family at that time. Due to the demands of having to get to work and not many choices, the decision of purchasing a new car was made ASAP. Consumers are force into purchasing resources for their family at any cost in order to survive. That sacrifice was an opportunity cost of choice that had to be consider.
We did not consider trading in our old car. The old car had been paid off. We decided to keep it and get do the repair on it for future use. If we had traded the old car, we would have felt misused and cheated.
The down payment for the new car was a little bit more than we could afford at the time so the dealership gave us a month to come up with the money. Therefore, we were able to have new car special financed.

Many cars look like junk. If that concerns you, do not worry. Just because a car has thousands of miles on it does not mean that it has to look bad. Again, cars that seem well taken care of by their previous owners can look just as good as new cars.