NEW VS. USED: WHICH IS RIGHT FOR YOU?

If you want superior long-term savings, buying used is a better investment. Used cars have a lower sticker price, but many people don't realize that they also have a lower rate of depreciation. Some new cars lose up to 40 percent of their initial value within the first few years of ownership, largely due to a dip in demand. When you buy used, you avoid this initial reduction in value and save more overall.

If safety is a priority for you, consider buying a new car, as recent models are more likely to have the latest safety technology on the market. Many vehicles come with standard or available driver-assist technologies, rearview cameras, and more. New cars also give you more infotainment options, like touch screens, smartphone integration, and wireless connectivity.  

Financing is calculated on a case-by-case basis, but in general, you'll get more financing options when buying new vehicles. Interest rates are also likely to be lower than for used cars. If you take into account common incentives for new car buyers, like cash rebates, you may save far more than you expected. However, used cars have a lower principal loan value due to their lower sticker price, so it's possible to save more with a used vehicle, even with higher loan rates.

It's important to reflect on your own buying habits. Do you sometimes have buyer's remorse when making large purchases? A used car might be right for you. Do you want to impress friends or clients? A new car will likely better suit your needs. Do you live in constant fear of putting that first dent in your door? It might be worth buying a used vehicle that already has a few dings in it.