We are a family of three currently renting an apartment.
We drive a gas guzzling clunker that will need to be replaced in the next 2 months.
We have some savings.
1) We need another vehicle and want something that is 1) fuel efficient and 2) affordable. We would never buy a brand new car because of the depreciation. We are considering buying a used car that is newer and is a hybrid or gets great gas mileage. Ideally, we want this car to last 20 years! It is thus a significant investment for us. We will only finance it if we can get 0% apr financing. (Car suggestions appreciated)
2) We are sick of renting! We are throwing money away everything month and getting no equity and nothing of value in return. We would like to move toward owning our own home ASAP (probably not feasible until at least another year). We would start with a town home or low-priced starter home. We could use our savings towards establishing a down payment. If we spend them on a car, we will be that much further from a down payment.
What should we do?
I had the idea that if we lease a car and own our home (instead of "leasing" our home and owning our car, like we do now) at least the car payment is less than the rent payment. But then we would still own no car. And again, we will not be in a position to purchase a home for at least another 12 months.
Please - advice, discussion, help from all you brilliant mamas!