Yeah, but the warranty usually only covers the first few years. When you buy something that's 3-5 years old, anything that was going to go wrong that the warranty would've covered has already gone wrong.
I'd much rather buy used if it means getting a real low mileage vehicle and saving 20%, but the last couple vehicles I've bought I got new because they were specific ones that (in these parts, anyway) hold their value really well and don't cost much less used than new. Tacomas and 4runners are very much like that around here. Jeep Wranglers and 3/4 and 1-ton pickups too, especially diesels. And people drive a lot around here, so it's not uncommon to see a 5 year old vehicle pushing 100k miles already.
Saw an article somewhere (WSJ?) not long ago talking about how nationally, the price gap between used and new is much closer right now than usual. That certainly reflects what I see around here. Doesn't mean used isn't a good way to go, just depends on what you want and can or want to pay for. Cash for clunkers didn't do used car buyers any favors.
