Should You Buy a New or Used Car?

Not anymore.

Used car prices are the highest in years and will remain that way until 2013.

Currently there's a shortage of 2- to 5-year old used cars which makes them hard to find � and expensive.

Leasing hit a low point, which means lease returns will decrease over the next few years. Dealers depend on lease returns and trades for their used-car inventory.

While used car prices are higher, new car prices are lower.

Manufacturers are offering huge incentives (rebates, low-interest loans, special lease deals, etc.) on last year's models as well as brand new 2011 models. In many cases, these incentives actually make a new car cheaper than its previous year used model.

Still, if you're buying an older used car in good condition, the old rules still apply.

But if looking for a relatively new used-car, compare the price with the deal you can get on a brand new model. Even if the used model is cheaper, consider the full new-car warranty, lemon law protection, and updated features of the brand new car.