I get great satisfaction from reading personal finance stories from personal finance columnists. One columnist I usually like is Terri Cullen, who writes the Fiscally Fit column at the Wall Street Journal. Recently, her husband was offered a chance to buy his dream car, a like-new Chevrolet Corvette, for a too-good-to-be-true-but-is price.

Gerry and I never make big purchases unless we both agree, but this time I felt the decision to buy the car should be Gerry’s alone. This is a car he’s talked about for as long as I’ve known him — for years I’ve watched him gaze longingly at other Corvettes on the road. The car’s price tag had always stopped us from buying one — late-model Corvettes in good condition cost in the low $40,000s. “Too expensive for a car,” Gerry would say, mostly to convince himself. And now he had the opportunity to buy one, practically new, at half the price.

Terri and Gerry (seriously) discussed the pros and cons of taking advantage of what would likely be the best deal they would ever see on a material dream. They included their son in the discussions as well, not for his input, but to teach that major financial decisions are not made on a whim. When the dream-fulfilling option involves going into debt and comes at a time when there are other priorities, these discussions are even more important.

Whether or not Gerry purchased the car, their son, Gerald, has learned a valuable lesson about making decisions about money and setting priorities. As I realize the Wall Street Journal may not always be available for free, I will go ahead and say the Cullens decided not to purchase the car, despite the great deal due to their friend’s estate sale. Going into debt for a toy (admittedly a very nice toy) did not outweigh the necessary expenses like house repair.

Somewhat like the Cullens, I’m sticking with my Civic for the foreseeable future. I’m closing in on 80,000 miles, which isn’t too bad after purchasing the car in June 2004 and living with long commutes to work and to my girlfriend. I don’t have a “dream car,” though I have no experience driving sports cars. I could go test driving one weekend, but I don’t want to develop a taste for expensive cars.

Debt vs. the Dream Car [Wall Street Journal]
Image credit: Smenzel

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Consumer Reports released its top picks for 2007, which lists the organization’s favorite cars in several categories. Here is their methodology:

Our Top Picks are recommended vehicles that have met our stringent requirements in three key areas: Testing. Of the more than 250 vehicles we’ve recently tested, each Top Pick has scored at or near the top of its category. Reliability. Each has proven average or better in reliability, which is based on more than 1.3 million responses to our Annual Car Reliability Survey. Safety. Top Picks also performed at least adequately in overall crash protection if tested by the government or the insurance industry…

Here is the list of Consumer Reports’ choices.

Fun to Drive: Mazda MX-5 Miata
Small SUV: Toyota RAV4
Small Sedan: Honda Civic (I drive a 2004 Civic)
Family Sedan: Honda Accord
Minivan: Toyota Sienna
Luxury Sedan: Infiniti M35
Midsized SUV: Toyota Highlander Hybrid
Budget Cars: Honda Fit
Green Car: Toyota Prius
Upscale Sedan: Infiniti G35

This list has much in common with Car and Driver’s 10 Best in 2007 list, but there are some notable differences. Consumer Reports includes not one American car, while Car and Driver includes the Corvette and Chrysler 300, as well as representation from BMW, Volkswagen, and Porsche.

Why such a wide discrepency between the two lists? Here’s Car and Driver’s methodology:

First, how well the car performs its intended functions. We expect sports cars to be fast and exhilarating, while we presume a family sedan will be practical. Second, we show a preference for the more engaging cars in each category; be it better driving manners, a double-take-inducing look, or a powerful engine. Finally, we are suckers for a good deal, so an inexpensive car that’s fast, fun, and practical will certainly rise to the top of our list.

It’s interesting the Car and Driver mention getting a “good deal,” while Consumer Reports doesn’t. However, the latter seems to feature more generally affordable vehicles, like the Honda Civic and Accord. Do these lists reveal a bias against or towards manufacturers headquartered in the United States (“American” cars)?

Cameron Johnson says American cars are high-quality but have a bad reputation. Then again, his family has been in the Ford business for generations and he is a business consultant for the automaker.

Here is how I judge quality. I mentally tally cars I see disabled in the breakdown lane (shoulder) while I travel every day on the highway. If all cars are created equal, the proportion of brands broken down should equal the proportion sold. There are of course other variables. For example, perhaps some cars are more likely to be owned longer and thus the average condition is worse. Regardless, my informal survey makes me feel comfortable about my Honda Civic. The only one I’ve ever seen towed is mine, but that wasn’t due to the quality of the car.

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