If you're considering purchasing a new car and you have been looking at different models, you have to make sure you are smart about the purchase. Buying a used car instead of a new car can save you thousands over time.

There are many reasons a used car dealership is the first place you want to start looking for a car, and your goal should be to pay cash. You may not get the newest looking car on the market, but you should still be able to get a good car for your money. Here are a few things to consider.

Debt is Scary

The average American is paying hundreds of dollars a month for their car payment and borrowing more than ever even for used cars. If someone were to lose their job, have a medical emergency, or lose part of their income, it could be near impossible to make this large payment. At one point in 2014, auto repossessions were up by more than 70 percent. Instead of struggling with debt or being worried about making the payment, pay cash and avoid the risk of defaulting on the loan.

New Automobiles Decline in Value Quickly

As soon as you leave the parking lot in the vehicle you've purchased, the automobile is going to lose value. This amount could be thousands if you're purchasing a new vehicle. That isn't a smart business investment, and you could end up easily owing more than the vehicle is worth if you are paying a high interest rate.

Full Coverage Insurance

If you are driving a car and you have an auto loan, you have to pay full coverage insurance. The higher the value of your car, the more money you have to pay. Buying a car that isn't very high value but suits your needs and doesn't have a loan allows you to get more affordable coverage, reducing monthly expenses.

If it's possible, avoid going to the bank to get a loan for your next automobile purchase. Instead, purchase the car with cash that you have saved, even if it isn't your dream car. You will feel better knowing that you own the vehicle, and you don't have to make monthly payments to the bank. If you need to get a loan, get a small loan with a low interest rate that should be easy to pay off in a short period of time. Consider searching for used cars at used car dealer websites like http://www.upicksave.com to get started in the comfort of your own home.