Nothing busts a family budget more than a high-interest car loan--except maybe two high-interest car loans. Suppose you buy a car for $20,000 at 18%. The payments are $508 for 5 years but you end up paying $30,472.00 for the car or half again what the car is worth. If a family has two such loans, you can easily find yourself paying more for cars than you do for a house. At a more reasonable 4.5% rate, the payments are $373 and the total cost is $22,372. However, the best kind of car is a paid-for car! That is my favorite make and model. If a car can be bought for cash, say with a tax refund, the savings over time are tremendous. Also, if you can keep a car going even for a year or two extra before you replace it, you can really help your finances. As my Daddy used to tell me, "The cheapest wheels are the wheels you've got.