The allure of a new vehicle can be powerful, but three times as many used vehicles are sold each year in this country than new cars. Your budget and mindset -- some people just can't stand the idea of "buying someone else's trouble'' -- may determine which is right for you. If you're on the fence, here's a breakdown of benefits and drawbacks.

New-car benefits and drawbacks

Benefits Drawbacks • It comes with a comprehensive manufacturer's warranty of at least three years or 36,000 miles that will cover almost any eventuality. Some go to 10 years or 100,000 miles. • It will likely have the latest safety, comfort and convenience features available. • There are no surprises. You are the first owner and there are no doubts about previous mechanical problems or accidents. • It will cost significantly more than a three-year-old used car. • Comprehensive and theft insurance costs could be significantly higher than buying used, although insurers offer discounts for newer safety features. • It will lose 25 to 40 percent of its value the moment you buy it, likely locking you in to long-term ownership.

Used-car benefits and drawbacks

Benefits Drawbacks • It will be significantly cheaper to buy than a new one. • Comprehensive and theft insurance costs are likely to be less. • The rate of depreciation over time will be less than the first two years of ownership of a new car. • A buyer may be able to step up to a luxury model for the same price as a new, plain-Jane sedan or SUV. • Questionable maintenance and repair history. • No comprehensive new-car warranty, though used-car warranties often are available at extra cost. • Higher maintenance costs as the miles on the vehicle climb toward 100,000. • Not as many safety and convenience features as newer vehicles.