Cry me a river. Compare your 1500 per year for everything, with $200-$300 per month for car payment. Using .07 cents per mile, and average 10,000 miles per year. Now, well low-ball insurance at $1000 per year, and assuming our car gets 20 MPG and that gas holds at $2.00, thats another $1000 for gas. Please allow me to do the math for you. $3000 annual payment + 700 operating costs (tags, taxes, maintenance) + 1000 for insurance + 1000 for gas. Without taking into account the equity of your own car