Is it smarter to buy a slightly used car instead of new?

Often it can be a good value. A one- to three-year-old car has usually taken the steepest depreciation, may still have factory warranty, and can sometimes be certified. Downsides include less selection on color and options, possibly higher used-car interest rates, and unknown history. Sometimes new-car incentives narrow the gap, so compare out-the-door prices and financing for both before deciding.