From Yahoo Finance · · 1m 20s
Should I buy a new or used car?
Decide between new car benefits and used car savings with budget and tech needs.
In brief
Decide between new car benefits and used car savings with budget and tech needs. New cars offer customization and tech but depreciate faster; used cars save money but need more maintenance. Originally reported by Yahoo Finance.
New car benefits
Buying a new car allows customization and the latest technology but comes at a higher price and loses value quickly.
Used car savings
Used cars are less expensive and slower to depreciate but may require compromises and higher maintenance costs.
Key considerations
When deciding between new and used, consider budget, tech needs and maintenance costs for the best choice.
Pros of new cars
Customization: Choose color and style; current technology: Latest safety features; better interest rates: Lower auto loan rates.
Cons of new cars
More expensive: Higher purchase and insurance costs; depreciation: Lose 20% value in first year; higher insurance costs.
Pros of used cars
Less expensive: Save thousands; lower insurance costs; slower depreciation: Lose 10% in first year.
Cons of used cars
Making compromises: Harder to find desired features; car history: Check maintenance records; increased maintenance costs.
Average monthly payments
In Q2 2026, used vehicles cost $542 monthly while new vehicles cost $765, according to Experian data.
The takeaway
New cars offer customization and tech but depreciate faster; used cars save money but need more maintenance.
