There is almost nothing that can compare to the thrill of getting a new car, whether brand new or used. After all, even if it’s a used car, it is new to you. But how do you go about deciding between new or used and get a good deal to boot? Well there are many factors that can come into play and with the auto industry having gone through some of it’s worst sales reporting, in history; the next few years may be a great time to buy a new car, even if you’ve never done so in your life. This guide will give you some tips to help you on your next car purchase.

Financially, buying a used car can sometimes be a better bet unless, you buy one riddled with problems. This is often the case with used cars and when you actually add up the money you’ll spend fixing the problems a previous owner didn’t want to deal with, buying a car new may become more attractive than ever. However, as soon as you drive that new car off the lot, its value depreciates. Of course, different car brands and models depreciate at a different rate. In the first year, an average of 20% of the value will be lost. Within 3 years, depreciation can be up to 40% and after 5 years, 70%. So, during the time you are still paying, most of its value is lost, leaving you with negative equity.

What are some other things to consider? Used car loans are usually offered at a lower rate and your insurance premiums are lower. Used cars either have a shorter or no time under warranty, which means more money maintaining while you are making payments. New cars are preferred by those that value the most up to date features, especially for safety and convenience. If you have children a new car is always a good idea. Every year the automobile industry learns more about safety and they implement this in their newer models. The industry is now also being held to standards regarding the environment that weren’t even in existence several years ago. Another good reason to opt for a new vehicle; you’ll be doing your part to drive a fuel efficient car when it’s necessary.

So, you’ve decided on new or used. What next? First, as with any major purchase, do your homework. Look at your budget, be realistic, and write down the numbers you come up with; and NOT in pencil! When you see that convertible for just $3,000 dollars outside your budget you will need the strength provided by that piece of paper. Check your credit score and report. Make sure you know what is on your report so that you can answer any questions. Another good idea is to shop loans before going to the dealer. If you’ll be trading in your old vehicle, find out what the value is and the reasons why. Don’t get sucked into the idea that you vehicle is probably only going to fetch such and such. If your used car has been customized or is a make and model with a high resell value, make sure you negotiate for the best deal on a trade.

Now you need to figure out what you want. Do you need a sedan because of small children or can you get a coupe? Do you need 4WD or can you get along with just 2? How important is gas mileage to you? These and many other questions should be answered before you even step foot on a lot. Pick a couple of viable models and research them thoroughly online. Find out what the MSRP is and what different dealers are charging for the car.

After you’ve decided on some models and test driven one of each, you need to make the deal. Do most of your dealing via fax, not in the dealership. Use the information you have gathered and use it powerfully. The dealer may sound compelling, but remember he is just trying to get the biggest commission possible. Be wary of the extras that they will try to sell. Even warranties can usually be purchased cheaper somewhere else. Discuss added fees and try to eliminate them. If you are feeling pressured or disrespected in any way, WALK AWAY. Only when you feel comfortable should you sign the papers. Happy purchasing equals happy driving!