Should you buy used cars or new ones? The moment a new car leaves the dealership it's value falls. The answer is a lot easier with that information. 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 largest decline in value has already happened. Someone else got robbed by that decrease. The 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.

Many sources provide these slightly used cars. People who buy or lease new cars trade in their old ones to the dealer. Those vehicles are looking for new owners. Companies like Carmax and eBay motors have tens of thousands of used cars available for browsing. In America there are car auctions every weekend. 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 the place to look for used car prices. Categories include make, model, year and condition from poor to excellent. It also breaks down the prices between dealer sales and private sales. Dealers have overhead private sellers don't have so that is important.

Have you considered financing? 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. It's nice to own a top of the line auto. But consider something a little simpler with a few less bells and whistles. That not only helps your bottom line, but your blood pressure. Theft, wear and accidents are bigger worries for people with fancy cars. 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. Net worth comes from saving. Most rich people get that way by saving money. Good used cars are a way to save.