New car versus used car decision is more difficult than ever

All car purchases start with one decision: New or used? It's hard to remember a better time to buy either. With automakers selling hundreds of new models, and more used cars than there are people to drive them, there are plenty of good vehicles out there ready for an owner and driver.

If you're on a tight budget, then buying a used car gets you the most vehicle for the least amount of money. You can count on one hand the number of new cars that list for less than $10,000. That buys you a tiny car, probably with two doors and certainly with a manual transmission instead of an automatic, no air conditioning, a lack of safety features (antilock brakes, side-impact airbags, etc.) and few other common amenities.

For less than half the price of the average new car, you can buy a three- or four-year-old used vehicle that is larger and loaded with more features than the small, bare-bones new one. But buying a used vehicle has its risks, which could cost you more over the life of the vehicle. The fact is, you are buying a vehicle that someone else has owned and driven. You don't know how it's been driven or how well it's been cared for. A used vehicle will require maintenance and possibly expensive repairs far sooner than a new one, and these repairs probably won't be covered by a warranty.

THE CASE FOR BUYING NEW

For some people, buying used isn't an option; they want a brand spanking new car. They want to select the color and all of the features that go on it. There's definitely a pride of ownership and peace of mind in being a vehicle's first owner. Some of a new car's advantages include:

In addition to comprehensive warranties, automakers provide warranty coverage for both corrosion resistance and powertrains. Chrysler, Jeep, Dodge, Hyundai, Kia and Mitsubishi have the longest powertrain warranties, ranging from "lifetime" (for Chrysler products) to 10 years/100,000 miles for the others. Many other manufacturers offer coverage beyond three years/36,000 miles, the previous norm -- like in the case of GM's five-year/100,000-mile warranty. It's good to keep in mind that if you buy these vehicles used, what's left of the warranty may not be fully transferable.

THE CASE FOR BUYING USED

If you're not married to the idea of buying a new car, used vehicles have their own benefits: