New cars or used cars, which are the better deal? The moment a new car leaves the dealership it’s value falls. That makes the question a lot simpler to answer. Buy the car after it has taken the biggest value hit. Balance that with the time when the car won’t need as much repair work. The slightly used car is about the best for both concerns. The big hit to car value has already occurred. That loss went to the original owner. The auto is likely still under warranty and isn’t in a state of needing constant work.

Late model used cars are available from a variety of sources. Car lots have a lot of traded in cars. Those cars than have to be sold. Companies like Carmax and eBay motors have tens of thousands of used cars available for browsing. Speaking of auctions, most cities have a lot of auctions taking place every day. Dealers auction cars, as do cities when police confiscate them from criminals.

The most trusted source for used car prices is Kelly Blue Book. Cars are shown by year, model, then with prices shown for various conditions. Sale by an individual or dealer is also shown. That does make a difference because dealers have overhead that private sellers do not have.

What about financing a used car? 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. Remember, however, that even simpler models get from point a to point b. That not only helps your bottom line, but your blood pressure. 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.

With wealth it’s not what you buy. Wise spending turns into wealth. Most rich people get that way by saving money. Saving money on a used car can be one step to being wealthy.