Buy New vs. Used Car – Pros and Cons

Shopping for a new vehicle can be an exciting time but there’s a lot to think about. One of the main things including will you buy a new or used car? There are advantages and disadvantages to each option to consider. Before you begin the car shopping process, make sure you understand how much you can afford and you go in with a budget.  

Buy New


  • With a brand new vehicle there is significantly less chance for any problems and maintenance. 
  • There’s no history to worry about any accidents or upkeep from previous owners such as routine maintenance and regular oil changes. 
  • When buying new you get the latest features including technology and safety features, both which are rapidly evolving.  


  • New cars cost significantly more which can lead to more expensive car insuranceIt is a good practice to send your insurance agent the full 17-digit VIN of the vehicle you are looking to purchase so you know the expected premium when making your purchase decision. 
  • If you choose to finance by leasing, when the lease is up you have to give the vehicle back or buy it out. 
  • The value depreciates immediately after leaving the dealer and by 20% or more within the first year 
  • Once the warranty expires, they can be more expensive to repair due to advanced technology.  

Buy Used


  • Used cars are much less expensive and may fit better in your monthly budget. 
  • You own the vehicle right away if buying in cash or when the loan is paid off. 
  • The vehicle depreciates at a much slower rate which can benefit you at resale to get a better value for your car’s worth 


  • There is potential to put money into it sooner for maintenance and repairsHowever, it’s easy to learn about a car’s past by getting a vehicle history report which shows the title history, record of maintenance, how many previous ownersand information about collisions. 
  • Most vehicles are sold as is, meaning whatever issues the previous owner didn’t want to deal with are now your problems.  
  • You potentially may have to search longer to find exactly what you want or might have to compromise on certain items such as color, trim package, or features.  

Take the time to research different vehicles and what the best option is for you can help avoid frustration and unexpected surprises later.  

Contact your local Rural Mutual agent for more information how to select an auto insurance policy that’s right for you.