Which Is Better Preowned Cars or New Cars

Are preowned cars or new cars better?  Keep in mind that a shiny new car loses value the second the tires touch the pavement outside the car dealership lot.  That makes the question a lot simpler to answer.  Since a car is a depreciating asset, meaning in general cars lose value with time,  the best money decision is to purchase the car when it will tend to lose less value.  Maintenance costs are also a factor.  Those are most balanced in the late model used car.  The value has already dropped from new car state.  Someone else got robbed by that decrease.  The car likely won't need constant repair work, and the warranty is still probably valid.

Late model used cars are available from a variety of sources.  People who buy or lease new cars trade in their old ones to the dealer.  Those vehicles are looking for new owners.  eBay has a whole division dedicated to used cars, while specialty companies such as Carmax list thousands of them.  Speaking of auctions, most cities have a lot of auctions taking place every day.  Auctions include cars from the police, taken from criminals, or used rental vehicles. 

Kelly Blue Book is the place to look for used car prices.  Cars are shown by year, model, then with prices shown for various conditions.  It also breaks down the prices depending on whether the car is being sold by a dealer or by a private individual.  Dealers have overhead private sellers don't have so that is important.

Have you considered financing?  First consider paying cash.  No matter how low of an interest rate or how low the monthly payments, nothing helps the monthly budget like not having to make any car payment.  Sure, people like the fancy models.  But consider something a little simpler with a few less bells and whistles.  That can even mean a less stressful life.  People who own the luxury cars worry more about them.  Many used car owners take pride in their cars, but don't worry over a ding or two. 

Sure cars are a status symbol, but wealth isn't based on what you spend.  It's based on what you save and on net worth.  Most rich people get that way by saving money.  Good used cars help the budget.

Find more info on cars and car rentals here Preowned Cars