A car drops an average of 20 percent in value when you drive off the lot. Insurance costs will be lower for an older car. Therefore, buying a used car is smarter financially.

You may be thinking – why buy someone else’s problems? A car could look good and be a reincarnated rental that was never maintained. In that situation, you’d be happier with a new car.

You have to consider what would make you happiest – a shiny new Toyota or a five-year-old BMW? This all depends on your priorities.

Should I buy a new or used car?