There are three classifications of cars when you are looking to buy one. First off you have the new cars that are sold by a dealership. Next you have the used, but still relatively new cars that are also sold and certified by a dealership. Then you have the used cars, no matter what age, that are sold by the owner.

Here is what you need to know about buying these different types of cars. The new cars sold from a dealership are overpriced, they cost the most money even if you finance, and their resale value is terrible. The older cars sold by an individual are potentially mere weeks away from a major malfunction and will need hundreds if not thousands of dollars in repairs. The best value on cars is with the slightly used, still relatively new cars that have a smaller amount of miles on them, are still in great working condition, and represent a great value.

For example, a brand new car may cost twenty five thousand dollars, but in three years that same car, with less than fifty thousand miles on it might only have a resale value of fourteen thousand. Fifty thousand miles does not ruin a car, so if you are purchasing a care with only fifty thousand miles on it, you are getting a car with a fairly long expected life span at a huge discount. Certified pre-owned or used cars sold by dealers, when compared to really older cars that are sold by individuals, are in much better condition and are a much better deal.

Think about it like this, imagine that you have a relatively new car that is being sold for about fifteen thousand dollars. Now assume that car is in amazing condition and will not need any attention other than the tires, regular oil changes and an occasional check up over the next several years. Now imagine that you have the same type of car, but much older with a lot of miles on it and it’s for sale for only eight thousand dollars. However, that car will need hundreds, maybe even thousands of dollars in basic repairs in the next few years and who knows what else may go wrong with it. Your best bet to get a great value is to go with dealer certified pre-owned and used vehicles. Finding the best value on a car is very important not only because it is a major purchase but also because buying a “lemon” can mean thousands of dollars of repairs and servicing calls made to the vehicle over the lifetime of the car.