Used Versus New Cars

I drive a 1999 Jeep Cherokee, but before driving this slightly rusty, high mileage vehicle, I also drove a brand new 2004 Saturn ION. I've had both new and used vehicles and both have been an expensive venture.

Anytime you make a large purchase, it is always more than just the upfront cost. You have to figure in repairs, maintenance, gas costs, and auto insurance.

With purchasing a brand new vehicle, I was strapped into a monthly car payment and higher insurance rates. I also paid for upgraded oil changes to keep my brand new engine running like a charm. The best part of purchasing new was the included vehicle warranty which paid for almost all of my repairs, except for brakes, belts and tires.

When I purchased the used Jeep, while I paid for it with cash, the monthly expenses of keeping up with inspections and repairs was just as much as my auto payment. However, my insurance payments were much cheaper.

In the long term, which is the better buy? I would highly recommend purchasing a slightly used vehicle that still has a factory warranty. Purchasing new is almost never a good move, considering the drastic decrease in value the instant your new beauty leaves the lot.

When you decide to purchase slightly used, you're still getting that new car feel without several previous owners having ruined your "new" ride. If you do not have the funds to purchase a vehicle that's just a few years old, look for older vehicles in good physical condition, with mid-grade mileage. Calculate no more than 12-15,000 miles per year having been driven.

You never want to purchase a vehicle that has incredibly high mileage, nor do you want to buy a car with too low of mileage. The perfect in between will probably provide you with the best buy. But never, ever, forget to use a vehicle history report. Spend the $10 to run a report on your possible purchase in case of flood damage, car accidents, or other hinders against your purchase.

If you truly want to purchase a new vehicle, don't buy on a whim. Do your research on the new vehicle and look for rebates and cash back options. Many dealers are hurting for sales, so you can often get them to lower the purchase price for you.

Be an educated shopper whether purchasing new or used. Educating yourself on the sales process of such a large purchase can save you thousands.