Skip to navigationSkip to main contentSkip to right columnADVERTISEMENTRebecca BettertonThu, September 17, 2026 at 4:53 PM GMT+2 5 min readKey takeawaysBuying a new car allows for customization and the latest technology, but it comes at a higher price and loses value quickly.Used cars are less expensive and slower to depreciate, but may require compromises and can come with higher maintenance costs.When deciding between new and used, it's important to consider budget, tech needs and maintenance costs.Shopping around and getting preapproved for financing can help you get the best deal.It's the choice that millions of car buyers make each year: Do you buy a new car with all the bells and whistles, or a used car to save money? Deciding between that new-car smell and a pre-owned vehicle involves more than just price, but it's an important factor.A used car is a good choice if you're trying to save on your initial purchase. But you'll need to consider the cost over the life of ownership — including maintenance and repairs. Depending on how you want to use the vehicle and your overall finances, you may find that buying new is the better choice.Pros and cons of buying a new carBuying new can be a good choice if you want the latest features and cheaper maintenance costs from the start. However, it also comes with a higher depreciation rate and higher purchase and insurance costs.ProsCustomization: The primary benefit of buying a new vehicle is that you can customize it to your preferences — you can select the color and style you want and request any add-ons that appeal to you.Current technology: There are practical advantages too — you will drive off with the latest technology and safety features. Better interest rates: With a new car purchase, you are also more likely to get a better auto loan rate than you would with a used car purchase, often by a few percentage points. Reliability: You won't have to contend with any potential hidden mechanical problems when you buy new. Plus, the vehicle's warranty should limit your spending on repairs and maintenance in the first few years of ownership.ConsMore expensive: New cars are often several thousand dollars more expensive than their used counterparts, which could make a down payment or monthly loan payments harder to afford, even if you score a lower interest rate.Depreciation: You'll also have to contend with vehicle depreciation, or the rate at which your car loses value. As the saying goes, new cars lose value when you drive them off the lot. Experian estimates that new cars lose 20% of their value in the first year, and depreciation continues for the first 10 years of ownership.Higher insurance costs: New cars often cost more to insure because of their higher risk of theft, value and other related factors.Terms and Privacy PolicyEU DSA contactPrivacy & Cookie SettingsMore Info