New vs. Used

Some people prefer to have a vehicle up-to-date with the latest luxuries or conveniences. Others like to have the intimate knowledge of a vehicle's maintenance history that can only come from being its first owner. And some buyers live for the "new car smell" that wafts from the open door of a new vehicle.

Others prefer buying a car a couple of model years older, allowing them access to a particular make or model that might otherwise be out of their price range. They avoid the significant decrease in value that often happens in the first three years of new car ownership. In addition, by purchasing through reputable dealers, these individuals are confident they will get many years of enjoyment from their "new" used vehicle.

The benefits of a new car:

Perfect condition Low maintenance costs, since wear and tear replacements are usually a few years away High reliability and a full manufacturer's warranty Customizable features

The benefits of a used car:

New cars lose about 40% of their value within three years, at which point, the depreciation starts to slow down Opportunity to afford a higher-end vehicle, or a vehicle with more luxuries and upgrades A lower purchase price can translate into lower monthly payments Insurance premiums may be lower

Should you buy new or used? Be sure to weigh the pros and cons about warranties and price points, do some monthly payment comparisons, and consider what's most important to you before you make your choice.