Buy Used Car or New Car?

Our trusty old car is giving us problems agains. Its an engine overheating problem. Sob. Sob. The men at the workshop could not find the problem and after losing RM1k plus for fixing other things the problem recurs in the evening. How annoying is that! Thats always the problem with mechanics. Fix everything else accept the problem. The other thing about mechanics is everytime we send the car over for fixing, somehow or other a new problem will arise within the next month or two.

We were hoping to keep this 12 year old car of ours for a few years more before we scrap it and get another but looks like it may be time to change. Sigh! New cars are so expensive. Some of them even cost the same as an apartment. Imagine driving an apartment around! And they depreciate so quickly. Getting a new car does not seem to make financial sense. Not only that, theres the car installment payments to consider. We didn't mind driving an old car because it meant driving a fully paid old car but now that its become not so reliable, its costing us to keep it so maybe its time to go.

So, we're thinking of second hand but then we are worried that in trying to be smart we end up making a big mistake like getting a stolen vehicle, a problematic one that has been through an accident or whatever risk associated with a used car. Aarrgghh! Hubby asked me to check out Eon. Apparently they also trade in used cars and give a warranty. I found a lousy website that has no links and no contact address. If they can't even have a proper website, I worry about the service.

What to do? Dunno, dunno, dunno. All I see is money flying out the window. If must pay mortgage and car installments too, how to save any money for the children's education or even have any retirement plan?

Anyone has any thoughts to share? What car do you drive? Is it reliable? What about fuel consumption? Should we get a new car or a used car? What car? Should we keep this since its worth so little now? Any tips on buying new/used car? Decisions. Decisions. Decisions.