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If the maintenance expense on your old car is getting too high and you’re ready to start shopping for a new ride, consider buying a used car instead of a brand new one. Brand new cars are rarely worth the higher prices they command, simply for the benefit of a new car smell. Buying a used car can save you money in several ways.

A new car depreciates by a significant amount the moment you drive your freshly purchased vehicle off the dealership parking lot. That’s the main reason why buying a used car is so much more cost-effective. Let some other car buyer take the hit on depreciation and look for a used car no more than two or three years old. The average annual mileage for most drivers is about 12,000 miles. Multiply that by the car’s age and compare to your potential used car. If the car has significantly higher mileage than that, it’s probably not the best deal for you.

Be sure to ask for a history on your used car. A vehicle that has suffered through a flood or other natural disaster may have hidden damage you can’t easily locate. Also, a vehicle that has been in a collision may have structural damage that negates its safety features.

Check with your automobile insurance agent and get a quote for the used car you’re looking at before you make the deal. You can probably save money on your car insurance by not buying a brand new vehicle, but you’ll want to make sure that the insurance is affordable before you buy.