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We are in the middle of a full blown recession, yet people are still keen to own the latest new cars. No matter how much people are struggling they still love to go out and splash out on the latest top of the range car.

Lets consider just a few of the reasong why people love to own new cars and why they are often willing to put themselves in considerable debt to drive the latest models.

Peer Pressure
This is definately one of the key reasons why people are buying new cars. What is worse than going out in an old heap and then seeing your friends or a family member driving a fantastic top of the range car. People don’t want others to see that they are struggling, so they go out and buy a new vehicle even though they can’t afford to show everyone they have made it in there lives.

Show off
A lot of people want to buy a new vehicle to show off, they love all the attention they get from having people look at them when they stop next to traffic lights or pull up in a crowded area.

Speed
Some people love cars that go super fast and they know that by buying a new vehicle it will ultimately fill there thirst for driving at high speeds. New vehicles tend to be capable of much higher speeds. Even diesel vehicles are quite nippy these days.

Relaxation
A lot of people just buy a new car simply for the comfort and relaxation factor. This is especially true if people are travelling a long way on a regular basis. They want to relax and have all of the latest whizzy technologies that are now available.

Collectors
Some people are quite lucky to be well off. These lucky people tend to have a habit of just buying new cars and collecting them. Their newly purchased cars can end up unused, sitting on the drive and ultimately sold off after a few short months. But to the buyer it does not really matter as they have the money to effectively feed their collection habit.

There is nothing wrong with buying a new car; I myself tend always look at new vehicles. But make sure that you have the correct finances in place to actually pay for the vehicle as if not you will probably end up getting yourself into a lot of debt and the debt company may well take back the car from you, leaving you with nothing.

I recommend car leasing as a sensible way to finance the acquisition of all new vehicles. I have my 5 series BMW on a very affordable BMW lease deal and all of my companies commercial vehicles are on very cheap van lease contracts.

Many people treat cars like a status symbol. Everyone has heard of the celebrities with massive collections of expensive cars, or custom built garages to accommodate their cars in the heart of an expensive city like New York. But for some people cheap cars are the way to go. Cheap in price doesn’t have to mean cheap in quality. Less expensive can still be functional, and even fun.

One of the ways to obtain a quality car on the cheap is to purchase cheap used cars. Even luxury models are much less expensive when purchased second hand. A new term has emerged over the last decade, pre-owned – to denote used cars that are of high quality. These pre-owned vehicles have even managed to pull some long time new car buyers into the used car market. Consider this with luxury cars. A Mercedes or Lexus is so well built that even 10 year old cars can still be in excellent condition. In fact, many people have generations of car buyers in their family who always purchase higher end models that are used. Remember the chauffeur in “Driving Miss Daisy”? He always bought Miss Daisy’s second hand, luxury cars.

Some cheap new cars are quite nice, too. Hyundai makes some models that are decent for less than $12K.  A well engineered car like the Honda Civic is only around $15K.  That car lasts a long time, and gets great gas mileage.  Cheaper cars are also generally less costly to maintain, and they don’t require premium gasoline.

Another area to look is cheaper, if not really cheap, luxury cars.  Audi has some luxury models that generally sit at the bottom price in their class.  Nobody beats Audi as far as engineering.  The Audi TT can be just as much fun as a Porsche, but much less expensive.

Some people aren’t happy unless they scrape the bottom of the barrel cheap.  They turn to the clunker, the hooptie, the ancient model car that was probably old when their parents first bought a car.  Teens often buy this style of car.  This type of car is good practice for a life of car care, and it gets the job done. But watch out, the age old adage “You get what you pay for” applies to cheap cars too. When the car overheats, you won’t be happy.