New cars or cheap used cars for sale, which are the better deal? Keep in mind that a shiny new car loses value the second the tires touch the pavement outside the car 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. That of course combines with the concern over the state when a car needs less maintenance. Those states converge in the slightly used car. The big hit to car value has already occurred. Someone else absorbed that loss. The cheap used car is still in good condition, often still under warranty, so that it won’t have need for constant and costly repairs like an older model car needs.

Late model used cars sale are available from a variety of sources. Dealerships take in trade-ins from customers who purchase or lease new vehicles. Those cars than have to be sold. Companies like Carmax specialize in used automobiles, while eBay has an entire subsection dedicated to car auctions, mostly for used car lease. Speaking of auctions, most cities have a lot of auctions taking place every day. These include police auctions of impounded vehicles as well as dealer auctions that might involve, for example, cars purchased from car rental companies.

Kelly Blue Book is a valuable resource to determine the relative fair price of a used car deals. It lists cars by year, then the general prices for those cars in various conditions from excellent to poor. It also breaks down the prices depending on whether the car is being sold by a dealer or by a private individual. That does make a difference because dealers have overheads that private sellers do not have.

What about financing a best used cars? The better idea is to save money to make a cash purchase. 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. Buying a car like that used can not only help the budget, but creates less stress. People with more expensive cars worry more about theft, accidents and wear. Not that used car owners like to drive junk, but a little ding or dent means less on a simpler model. 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 are a way to save.

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