There are plenty of factors that will weigh in on the decision, including what kind of financing you can buy, and which car is ultimately the better deal.

Also, with the Cash for Clunkers deal, you might get a better deal if you’re trading in a used car with a lot worse gas mileage for a new car with great gas mileage.

Wander by any car dealers, and you’ll likely see a lot so full cars are spilling over onto the sidewalk.

The nation’s car manufacturers and car dealers are in big trouble, but the winners are going to be consumers who can cut themselves a great deal – and maybe even use the new Cash for Clunkers program.

In today’s article, I answer a reader’s question about how to choose between a buying a new car or a used car, and whether it’s worth putting down a large chunk of change as a down payment on the car so you finance less and pay less interest overall.

What do you think I said? And, what would you do?

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