Car salesmen are… salesmen. Their job is to sell you stuff. Whether you need it or not.

Here are some things you don’t need – and some things you need to know about:

* You probably don’t need the optional engine –

Wanting more power is one thing; paying extra for power you don’t need – and let’s be honest, can’t make much use of – is another. Unlike in the past, when many cars were under-engined as they came, there isn’t a new car on the market that can’t do 0-60 in 11 seconds or less and most (better than two-thirds of them) do it in eight or less. This is three times as quick as a ’70s-era VW Beetle. And it is about as quick as a V-8 powered car from the same era. Any new car you might buy is capable of reaching atleast 115 MPH – and most are capable of more than 120. Trust me on this.

All them can cruise at 90-plus all day long – without struggling.

That’s with their standard, as-it-comes engine. How many of you ever drive faster than 90 MPH? The highest speed limit in the United States is 80 MPH. In most states, it’s maybe 70-75. If your car can comfortably handle cruising at 75-80 and has enough power/performance to merge and pass – you’ve got all the power/performance youneed.

If you want more power/performance, fine. There is nothing wrong with that. Just don’t be fooled by a salesman into believing you need that.

Because probably, you don’t.

* A six-year-loan could leave you under water –

To make new cars appear more affordable, new car loans as long as six (or even seven) years are now available. Adding an extra year (or two) of payments is a way to lower the monthly payment – which is becoming more and more necessary to facilitate the purchase of vehicles with sales prices in excess of $30,000 (the average price paid for a new car last year) at a time when the average person’s annual income can’t deal with a $500-per-month payment. Which is about what you’d be facing to finance a $30k car over 60 months… assuming zero interest. But, here’s the problem: Unlike a house – which usually will at least maintain its value – a car will almost always lose value over time. The longer you stretch out the payments, the more likely it is you’ll reach that awful nexus of still owing money on something that’s worth less than your balance due.

The average new car is worth half or less what it sold for at the end of five years. So a car that sells for $30k today will probably be worth only $15k at the five year mark. This “depreciation trend” is not, however, steady. After five years, the average car’s valuereally begins to plummet – in part, because the market perceives them as being “old” (yesterday’s news, no longer trendy or cutting edge) and in part because they are getting to the age at which stuff begins to break or requires repair. The car is out of warranty – and because of the complexity of modern cars, even minor repairs can be very expensive. Market value slides downward accordingly. You do not want to be making payments on a six or seven year old car – no matter how “affordable” those payments may appear at sign-up time.

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