The allure of a new vehicle can be powerful, but three times as many used vehicles are sold each year in this country than new cars. Your budget and mindset -- some people just can't stand the idea of "buying someone else's trouble'' -- may determine which is right for you. If you're on the fence, here's a breakdown of benefits and drawbacks.

New-car benefits and drawbacks


Benefits Drawbacks
• It comes with a comprehensive manufacturer's warranty of at least three years or 36,000 miles that will cover almost any eventuality. Some go to 10 years or 100,000 miles.
• It will likely have the latest safety, comfort and convenience features available.
• There are no surprises. You are the first owner and there are no doubts about previous mechanical problems or accidents.

• It will cost significantly more than a three-year-old used car.
• Comprehensive and theft insurance costs could be significantly higher than buying used, although insurers offer discounts for newer safety features.
• It will lose 25 to 40 percent of its value the moment you buy it, likely locking you in to long-term ownership.