Save up to buy a car without financing.

Interest costs you. A lot! Buy the best beater you can afford and survive with no car payment. Take the money you would have paid for a car payment and pay that to your "new car fund." Wait a few years paying your car fund every month and go shopping for a new - used car. Only do this if you need to, your current car may suit you just fine for even more years. Drive this new used car for many years with no car payment. Continue paying your "new car fund" each and every month to make sure when you want to make a purchase you can do it with cash. By doing this you avoid paying double the price when considering all of the financing charges. Never, ever buy a brand new car. Let other people find out what's wrong with the models and take a beating in depreciation those first few years.