• Car buyers may run into several problems in their search for a new or used car.Jupiterimages/Photos.com/Getty Images
  
  Purchasing a car is an exciting experience for most buyers. A new car oftentimes represents a new place in life where an upgrade to a better car is a reward for hard work and a job well done. But buyers can encounter a number of problems when purchasing a new or used car. The way that these problems are faced and resolved may have a direct impact on the purchase price of the car and the enjoyment that the car provides.
  
  

New vs. Used

• One of the oldest dilemmas when purchasing a car is whether to buy a new car or a used car. Car buyers vary greatly on this topic, as some desire the dependability of a new car, while other buyers prefer the cost savings of a used car. The major problem when deciding between purchasing a new or used car is the issue of depreciation. A new car will lose 70 percent of its value over the first four years of its operating life. While many car buyers have no qualms about this, others prefer to purchase a car whose previous owner bore a large brunt of the vehicle's initial cost.
  
  

Financing

• Most potential car buyers intend to purchase their new or used car by means of an installment loan. These loans require that the buyer have a relatively favorable credit history that is clear of major problems such as bankruptcy or repossession. Purchasing problems may occur if the loan applicant has a spotty credit history, resulting in a high interest rate or a loan application rejection. While there is nothing wrong with purchasing a car with an installment loan, some car buyers prefer to self-finance the purchase of a vehicle by saving money to purchase a car in full with cash. Dave Ramsey, a popular personal finance expert, recommends purchasing cars with cash and investing the amount that would have otherwise been spent on a car payment in a reputable mutual fund.
  
  

Vehicle History

• Many car dealers sell automobiles that have a history of wrecks, floods, fires and other problems. Buyers that purchase these flawed cars can nearly guarantee that the car will have a major mechanical problem at some point in its operating life. Car buyers who are seeking to purchase a used car should always ask to see a vehicle history report on the car they may purchase. A vehicle history report will show vital information, such as insurance claims filed on the vehicle and police reports that will ensure that the car is not stolen property.