A few years ago I wanted a new car, so I got a bank loan for that and a couple of other things. Bought a Mk3 16v from a dealer. Then had tons of problems with it, dealer refused any contact, spent a further 1000 getting it sorted, then some tw@t crunched a door and drove off. I'd had enough, sold it, bought a Mk2 16v, was much happier with the car. Then my circumstances changed, I moved out of home, suddenly had lots more to pay for, and now I'm still paying off the loan.
Cars depreciate, you will lose money on them (unless it's a classic or something special), if you're secure in your job (ie salary won't go down) your outgoings won't increase (ie having a baby to pay for, or buying a house) and you're going to keep the car for 5yrs or so, then go for it. But that's my opinion and experience.
