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New cars or used cars, which are the better deal? The moment a new car leaves the dealership it’s value falls. The answer is a lot easier with that information. Because autos depreciate, make the purchase only when it will lose the least value after you own it. Balance that with the time when the car won’t need as much repair work. Those states converge in the slightly used car. The value has already dropped from new car state. Someone else absorbed that loss. The car likely won’t need constant repair work, and the warranty is still probably valid.

Many sources provide these slightly used cars. People who buy or lease new cars trade in their old ones to the dealer. Those cars than have to be sold. Companies like Carmax and eBay motors have tens of thousands of used cars available for browsing. There are car auctions in every city. Dealers auction cars, as do cities when police confiscate them from criminals.

Kelly Blue Book is the place to look for used car prices. Categories include make, model, year and condition from poor to excellent. Sale by an individual or dealer is also shown. That does make a difference because dealers have overhead that private sellers do not have.

Have you considered financing? The better idea is to save money to make a cash purchase. That saves money in the long run. It’s nice to own a top of the line auto. But consider something a little simpler with a few less bells and whistles. Buying a car like that used can not only help the budget, but creates less stress. Theft, wear and accidents are bigger worries for people with fancy cars. A scratch doesn’t mean as much on a less expensive car.

With wealth it’s not what you buy. 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.

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