New or used car

By choosing a used car instead of new, you can save some money. A new car depreciates fast, especially in the first few years. After 3-4 years, a car is worth only about 60-70% of its original price. As soon as a just-sold new vehicle drives out of the dealership, it drops a thousand or two in value as it suddenly becomes a used car.
Yes, it's nice to drive off the lot in a shiny brand new car that is covered with bumper-to-bumper warranty and if you can easily afford it, why not? However, I have calculated this many times with many people: even if a new car is sold with zero-percent financing, it will almost always cost you few thousands more than a good 3-4 years old used car.
It's easier to pay-off a used car, which gives you more flexibility. With a new car you could be locked in a lengthy contract and it's hard to get out of it earlier if for some reason you decide to get rid of a car before the contract expires. The insurance is also often cheaper for a used car. Another advantage of buying a used car is that you could buy a premium or luxury model for the price of a base small new car.
Of course, buying a used car is a bit of a gamble - some cars may be in a very good condition and others may have some hidden problems. You will probably have to spend some time and look at a number of cars before you find the one that you like. Hopefully, this information will help you with the whole used car buying process. You can also check my article what to look for when buying a used car with illustrations. We also have a section on car maintenance.