Car Buying: New Or Used?

Financial advisor Jonathan Pond recommends the following:

If you love cars, buy used. The reason is if you are trading in cars more often; every four years or so, it will be more expensive if you buy new. Car values drop the most in the first three years.

If you hate buying cars, and want one just for transportation, it's best if you buy new. If you keep it ten years and run it into the ground it will save you money in the long run.

The best strategy he says, is to buy a four-year-old car and keep it for four years. That way you buy it after it's greatest depreciation, and before major repair work is needed.

Now I like cars...but I still bought new. Here's two reason's why:

• It was a demo and the price was reduced because of that.
• It's a Honda Fit, which should hold it's value well over the years.

I traded in my nine year old car for this new one. I wanted to get some value out of the old car and avoid many costly repairs.

I have bought both new and used cars in the past, and I have had pretty good luck for the most part in both cases.

What kind of car do you look for when buying...new or used? Leave a comment and let me know.