Should you buy used cars or new ones?  Keep in mind that a shiny new car loses value the second the tires touch the pavement outside the car lot.  That makes the question a lot simpler to answer.  Because autos depreciate, make the purchase only when it will lose the least value after you own it.  Maintenance costs are also a factor.  Those are most balanced in the late model used car.  The value has already dropped from new car state.  That loss went to the original owner.  The car likely won't need constant repair work, and the warranty is still probably valid.

Late model used cars are available from a variety of sources. Used cars dealerships take in trade-ins from customers who purchase or lease new vehicles. Those cars than have to be sold.  Companies like Carmax specialize in used automobiles, while eBay has an entire subsection dedicated to car auctions, mostly for used vehicles.  Speaking of auctions, most cities have a lot of auctions taking place every day.  Auctions include cars from the police, taken from criminals, or used rental vehicles.

Kelly Blue Book is a valuable resource to determine the relative fair price of a used car. It lists cars by year, then the general prices for those used cars in various conditions from excellent to poor. It also breaks down the prices depending on whether the car is being sold by a dealer or by a private individual. That does make a difference because dealers have overhead that private sellers do not have.

What about financing a used car? The better idea is to save money to make a cash purchase. No matter how low of an interest rate or how low the monthly payments, nothing helps the monthly budget like not having to make any car payment. Sure, people like the fancy models. But consider something a little simpler with a few less bells and whistles. Buying a car like that used can not only help the budget, but creates less stress. People with more expensive cars worry more about theft, accidents and wear. Not that used cars owners like to drive junk, but a little ding or dent means less on a simpler model.

Wealth isn't made by spending, even on a car.  It's based on what you save and on net worth.  There are people living hand to mouth even though they earn a lot of money.  Saving money on a used car can be one step to being wealthy.