The very minute that you drive a new car off a dealer’s lot, it loses value. That’s just a fact of life, and if you ever decide to trade it in, you need to be smart about the resale value of cars, because not all cars depreciate at the same rate. Used cars tend to be more affordable than new cars, and you can often get more car for your money. If you’re on a tight budget, then buying a used car gets you the most vehicle for the money. You can count on one hand the number of new cars that list for less than $12,000. For less than half the price of the average new car, you can buy a 3- or 4-year-old used vehicle that is larger and loaded with more features than a small, bare-bones new one. Although used vehicles typically don’t carry the same warranties as new ones, the original factory warranty on a new car is often transferable to a second owner. In the end, the decision to buy new or used boils down to what you can afford and what will give you peace of mind.