---
title: Pros and Cons of New and Used Vehicles | Arizona Financial Credit Union
description: Trying to decide if it’s better to buy a new car or a preowned car can be a tough decision – there are advantages and disadvantages for both options. To make your decision a little easier, we’ve outlined the pros and cons of each below.
---

[Momentum Online ](https://www.arizonafinancial.org/blog)

# [Pros and Cons of New and Used Vehicles | Arizona Financial Credit Union](https://www.arizonafinancial.org/blog/spending-and-saving/car-buying/pros-and-cons-of-new-and-used-vehicles)

 Written by [Arizona Financial Staff](https://www.arizonafinancial.org/blog/author/arizona-financial-staff) | Jul 7, 2020 7:00:00 AM

Trying to decide if it’s better to buy a new car or a preowned car can be a tough decision – there are advantages and disadvantages for both options. To make your decision a little easier, we’ve outlined the pros and cons of each below.

**NEW CARS**

**Pros**

**Fewer repairs.** You can assume you won’t be dealing with major repairs or maintenance issues for a while.

**Easier shopping.** There’s no need to drag your prospective new car to the mechanic to check it out.

**More financing options.** You’ll be offered attractive incentives, like cash rebates from the carmaker and better interest rates from the lender.

**Improved technology.** Recent models have incredible technology, such as programmable settings, autonomous emergency braking and adaptive cruise control.

**Automaker’s guarantee**. Most new cars come with warranty coverage for their first three years or 36,000 miles, whichever comes first. Some brands, like Hyundai and Volkswagen offer even more generous warranties.

**Cons**

**Price.** Of course a new car will cost more. But, what makes it more painful is the fact that you can get a comparable vehicle for much less.

**Depreciation.** New cars go down in value as soon as they leave the lot, by 15-20%. And at the end of the first year of ownership, your new car can drop another 10%.

**Higher premiums.** Insurance companies charge more for newer vehicles.

**Registration.** Newer and more expensive vehicles can be pricy to register depending on how your state calculates your license registration fees.

 

**USED CARS**

**Pros**

**Price tag.** It’s not unusual to find a used car in decent condition with a price tag that’s 30% lower than a similar brand-new model. And many dealerships offer dealer-certified preowned programs that come with inspection and extended warranties.

**Less depreciation.** With the previous owner absorbing the initial depreciation on the car, your vehicle will only experience a minimal drop in price.

**Lower insurance.** With your car weighing in at a lower value, your monthly insurance premiums will be lower.

**Lower interest.** If you finance a used vehicle, you’ll likely have a higher interest rate. However, since the loan amount is lower, you’ll save in total interest payments over the life of the loan.

**Cons**

**Complicated purchase**. With a used vehicle, you’ll want to get a vehicle history report, get the VIN so you can do a title search for liens or other issues, and bring it to a mechanic for an inspection.

**Fewer choices.** When buying pre-owned, you don’t get to be picky about things like colors and features.

**Risk.** Even if you do your homework well, you run the risk of buying a car that has issues.

To help minimize risks when purchasing a used car, buy from a reputable dealership and request a report of the car’s history (e.g., [Car Fax](http://www.carfax.com/)).

Whatever option you choose, let Arizona Financials' car-buying experts do all the legwork for you. Get started at [MembersAutoCenter.org](https://www.membersautocenter.org/).

[View full post](https://www.arizonafinancial.org/blog/spending-and-saving/car-buying/pros-and-cons-of-new-and-used-vehicles)

```json
{
  "@context" : "http://schema.org",
  "@type" : "BlogPosting",
  "author" : {
    "@type" : "Person",
    "name" : "Arizona Financial Staff"
  },
  "dateModified" : "2024-01-11T20:37:05.070Z",
  "datePublished" : "2020-07-07T07:00:00Z",
  "headline" : "Pros and Cons of New and Used Vehicles",
  "image" : {
    "@type" : "ImageObject",
    "height" : 584,
    "url" : "https://21893935.fs1.hubspotusercontent-na1.net/hubfs/21893935/Imported_Blog_Media/ProsAndCons.jpg",
    "width" : 1140
  },
  "mainEntityOfPage" : "https://www.arizonafinancial.org/blog/spending-and-saving/car-buying/pros-and-cons-of-new-and-used-vehicles",
  "publisher" : {
    "@type" : "Organization",
    "logo" : {
      "@type" : "ImageObject",
      "height" : 60,
      "url" : "/hs/hsstatic/content_shared_assets/static-1.4092/img/default-amp-logo.png",
      "width" : 60
    },
    "name" : "Momentum Online"
  }
}
```