Posted by Maneesh Sethi :: February 27, 2008 @ 7:53 am

Choosing whether to buy a new or used car is one of the most common debates in the personal finance world. Although I usually tend to argue for buying a used car, I understand where some of the people in the new-car camp are coming from: they desire a car with dependability, a warranty, and of course that new car smell.

Fortunately, even if you've decided that a new car is right for you, that car doesn't have to break the bank. Many new cars, without a doubt, are incredibly expensive and all will depreciate the minute you take them off the lot. However, given the always-predictable holiday sales, not to mention your forthcoming stimulus check from the government, there are some good reasons to consider a new car.

Bankrate compiled a list of new sedans that all cost under $15,000. Here is their list:

If you look for these same cars on the used market, you might be able to find some great deals. For example, a used Toyota Corolla will probably cost you under $10,000, and it's also one of the most dependable cars out there.

The Bankrate article also offers some great advice that you should definitely read before starting your car search.

"The bottom line here is that for the foreseeable future, it is a buyer's market
for smart car shoppers. Buy only as much car or truck as you need, set a target
price and stick to it. Such intelligent shopping can help you do well in these tough times."

Buy only as much car as you need – don't go overboard with fancy options that aren't important. Having a target price will help you keep yourself from spending too much. For smart financing alternatives, check out Lending Club’s low-interest person-to-person loans. Even if you do go with the dealer’s financing, you can take out a loan from Lending Club for the down payment.

Happy hunting!