Advantages of New and Used Cars

All car purchases start with one decision: New or used? With automakers selling hundreds of new models, and more used cars than there are people to drive them, there are plenty of good vehicles out there ready for an owner and driver.

In the end, the decision to buy new or used boils down to what you can afford and what will give you peace of mind.

If you're on a tight budget, then buying a used car gets you the most vehicle for the least amount of money. You can count on one hand the number of new cars that list for less than $10,000. That buys you a tiny car, probably with two doors and certainly with a manual transmission instead of an automatic, no air conditioning, a lack of safety features and few other common amenities.

For less than half the price of the average new car, you can buy a three- or four-year-old used vehicle that is larger and loaded with more features than the small, bare-bones new one. But buying a used vehicle has its risks, which could cost you more over the life of the vehicle. The fact is, you are buying a vehicle that someone else has owned and driven. You don't know how it's been driven or how well it's been cared for. A used vehicle will require maintenance and possibly expensive repairs far sooner than a new one, and these repairs probably won't be covered by a warranty.