The question of which is the smarter move- purchasing a used or a new car has been debated for decades. If you ask ten different people you are bound to get ten different reasons why their choice is the right one.

My wife and I had the extreme pleasure of purchasing a car last month. We went to dealership after dealership test driving both new and pre-owned vehicles. I'll share with you what we decided to go with in a moment but lets quickly review the pros of each.

Pros of buying new:

Warranty- if you decide to buy new you will enjoy a full bumper to bumper warranty and if the car is a foreign make this may be up to 100,000 miles!

Roadside assistance: most new cars purchased will come with perks such as roadside assistance or free car washes and/or free scheduled servicing

Save on financing: If you decide to purchase a new car your interest rate on your loan will be lower and you may be able to spread the loan over a longer number of years which would in turn lower your monthly payment

Takes the mystery out of it: if you buy new you are aware that no one has beat on the car, failed to maintain the vehicle or gotten into an accident. This peace of mind is worth it to some buyers.

Pros of buying used:

Great value: if you end up going with a pre-owned vehicle you can get "more bang for your buck" as new cars depreciate the most within the first three years of ownership. If you opt for a pre-owned you are letting the previous owner absorb the bulk of the depreciation. Buying used may allow you to purchase a car one class higher than if you went with s brand new vehicle.

Pre-owned extended warranty programs: nowadays even the used cars have extended warranties to give the owner that piece of mind that used to be reserved for new car buyers.

Save on taxes: if you purchase a pre-owned you will get hit with less sales tax and if you reside in a state that has the loathed annual excise tax you will save on that as well.

Back to our purchase. So after killing two weekends my wife and I went with a pre-owned vehicle. The car we purchased was three years old with only 18,000 miles. The brand new sticker price was $42,000 and we settled at $24,000 and it still has four years and 50,000 plus miles left on the warranty!

Conclusion: It depends on what you value. I will be putting together tips & techniques on buying a car at a later date which will include some inside knowledge from an auto sales professional who has been in the business for over a decade. Until then I would say to be sure to know or have the following before entering a dealership:

Know your credit score before they pull it. You don't want any surprises!

Know the bluebook value of your trade in and the car you would like to purchase

Have a car loan in hand before entering the dealership and don't let them know this until the sale price is agreed upon.

Good luck and happy car hunting!