Orly's got a lot of good points... if you're starting out and cash is a problem, buy exactly what you need at first.

Maintain the vehicle properly and you won't have to dispose of it down the road. The longer you can keep an economical car running in top shape, the more money you save from not having to purchase a new car. Personally, I hate the three-five year ownership cycle. I intend to make our current car last as long as humanly possible.

RE: First car blues: Yeah... secondhand would be optimal, but having a newer vehicle will just encourage you to drive a little more carefully. And not putting money into the endless little niggles and repairs that come with even a decent secondhand is a bonus for first-time buyers who aren't car-crazy like us.