If the used car doesn't come with a warranty, you might be paying for unexpected expenses down the road. Also, there are times when car insurance is higher on a used car. If you are taking out a loan either way, the interest rates are sometimes higher on used cars as well. However, you might not be able to afford new and will just have to budget properly for future repairs. I have an 18 month old little girl. I personally like knowing that if something happens to my car, I'm protected with the warranty.