In light of the current economic recession, people are doing whatever they can to save a little money. They cut out coupons, avoid name brands, and stay in on Saturday night. They also put off large purchases like new homes and automobiles. But what happens when your only means of transportation breaks down?

In all likelihood you will have to find a replacement. But should you purchase a new car or a used one? Of course, everyone would rather have a new car than a used one. But in the midst of a recession, we must make our choices a little more carefully. We must ask ourselves what we need and what we can afford.

And when it comes to cheap cars here , there is really only one choice. The truth is that new cars depreciate at incredible rates the moment they are driven off the lot. In fact, a new car loses half its value in the first five years of ownership. (more...)