New or recently used?

I've got one for ya, what's better, buying new or used for $350/month? Here's my dilemma. My wife is going to need a new(er) vehicle in the next year or so, probably payments would be $300-350/month. Do I go and get a new compact or midsize car with a great finance rate over 60 months, or do I go and get a nicer car or CUV from a used lot and pay up the 5-8% finance rate they charge.

So a new car I have a brand-new vehicle under warranty, but I have to deal with plummeting depreciation over the next few years. If I buy used, I have a lower purchase price and a nicer car, but the interest rate makes the payments about the same, and no more warranty.

Any suggestions?

What would be the "great finance rate" for the new vehicle, and would you or your wife (whoever gets the loan) be eligible for that rate? Remember the rates they tease you with in the ads are for the top tier of credit worthiness, and with the tightening credit market the past year, fewer people are eligible for these rates.
The best way to finance a vehicle whether it be used or new is to pay cash( which means saving up for awhile and planning for the purchase) but being realistic, most people aren't disciplined and able to do that so they have to finance it. Getting a loan for the lowest rate and the shortest amount of time is the best option which means shopping around to credit unions, banks and dealers to see who can offer the best package. Doing a little research now can save hundreds, if not thousands of dollars over the life of the loan in finance charges.
If you can find a used model with low miles and obtain financing with great terms, you should come out ahead in the end. If the model(s) you are looking at are fairly reliable and have a good track record then a used vehicle without the warranty should work. You can keep a small amount of money on the side to cover any repairs that may crop up. Sometimes a used vehicle you are looking at may still have some of the original warranty left and can be transferred to the new owner. But letting the former owner take the hit in depreciation can make the used vehicle more attractive.

97ventureowner, answered your question, with this simple statement.

If you can find a used model with low miles and obtain financing with great terms, you should come out ahead in the end.

Agreed, look for one still under warranty, always a plus