Am I better off buying a used car?

Buying a late-model used car instead of a new one can save you thousands of dollars over the first five years of ownership, assuming it has low mileage and modern safety features. That's because it has already taken its biggest hit in depreciation. If a car hasn't been well maintained, its reliability and value are wild cards. Before you buy any used car, ask a qualified independent mechanic to inspect it.

See our list of the best and worst used cars to find a reliable model.