It makes sense to buy used car in this tough economy. But if you can afford a four hundred dollar new car payment then by all means go for that new car smell. But if you are like most people these days a used car is appealing. Not only for the price but because there are a lot of good used cars out there.

And new cars do not go up in value. Once you buy it and own it expect about a thirty percent drop in value. Of course you still owe one hundred percent of what you contracted to pay for it.

Auto insurance is also higher with a new car compared to a used car. Also, many used cars still are under the manufacturer’s warranty. You will find most American cars have a 12 thousand or 36 month warranty.

Find a car in this range and you will have the basics covered. The drive train, brakes, seals and gaskets, cooling system. If you buy your used car from a dealer, they will try to sell you extended coverage. This is…