If you would like to buy a new car, but can’t afford to make high payments, there is a better option for you.  You can purchase a vehicle without going broke.  In order to get more for your money buy a pre-owned vehicle.

As soon as you drive a new car out of the driveway it’s price drops drastically.  You will end up losing around 25% of the purchase price of the car within the first year, and as the years progress the value declines radically.  A good rule of thumb is that after three years of ownership a car will only be worth half of what you paid for it.  So, if you plan on buying a 2008 for $50,000, realize that a 2005 is valued at $25,000.

Most Americans trade in their cars approximately every 3 years.  This means that there are a large amount of pre-owned cars on the market.  There are many vehicles with less than 30,000 miles on them that are under two years old.  These cars are practically new.  This should help eliminate fears that go along with buying a used car.  In addition, you can purchase an auto warranty to give you peace of mind.

Do your homework in order to get the best deal on a used car.  You can find a wealth of information on the Internet, such as the worth of used cars, as well as prices for used car warranties and auto loans.