Both the new and used cars have their own advantages and disadvantages. It is the mind set of the people who are purchasing the car. Some like to buy cars only for the sake of showing their buying capacity and their status symbol while some others would be obsessed with buying fancy new model cars as soon as they are launched in the car market. New cars are meant for people who have the buying capacity, who think of only quality of a product and not the quantity, who would like to enjoy sole ownership of the car and who do not want to get compromised with their comfort. Whereas used cars are bought by people who would like to enjoy the benefits of owning a car but cannot afford to buy a brand new car. Such people are very practical as they think that, when a used car is purchased in a good condition it will serve the purpose of the new car and also comes with a very less price tag. Used cars are purchased by people who know the value of money and save money by all means and methods. Buying a new car is really exciting, but then buying a used car makes sense as lot of money is saved. A new car after purchase is no longer a new car and has to under go depreciation value. As the value of the new car decreases up to 40 percent within three years, a car is not considered as an investment. Whereas when a used car is purchased it benefits the purchaser with a lower value. Money is saved on insurance premium cost, registration cost, financing cost and licensing fees and the purchaser need not worry about the sales tax too. A used car is considered to be less reliable, as the exact condition of the car is not known. Also when a used car is bought in auctions, the purchaser is not even given a chance to look or test-drives the car, which makes the purchase altogether very risky. There is no idea if the previous owner performed maintenance and repairs of the car regularly. Such cars even though bought at a very low price will end up costing more on repairs and maintenance after purchase. When buying used cars detailed inspection of the interiors has to be made, as it will avoid any chances of replacement of any item as it costs more. The exterior of the used car also needs careful examination to find out if the car was involved in any accident or damaged in any natural calamities etc. The engine and the oil should be checked to avoid heavy expenses in replacing the car engine. Car should be test driven to see the performance of the car, suspension and to check the brake controls. There are certain kinds of used cars which are maintained very well, handled and driven by a single owner and which even comes with a lifetime warranty. Such cars are off-leased and sold. The purchaser will be very lucky enough to buy such kind of well maintained, hassle free used cars.