Oct 21, 2026

Should You Buy a New or Used Car? Here's Doug DeMuro's Take

Should your next car be new or used? Not too long ago, the general recommendation was to buy a used car to save some money without compromising the vehicle’s reliability. In recent years, however, used car prices have gone up substantially and may potentially cost even more than new models.

So which option provides the best value in 2026? In a YouTube video, auto expert Doug DeMuro addressed some of the top pros and cons to buying new and used cars.

Good To Know: I'm an Auto Expert: These Used Cars Could Get Cheaper Throughout 2026

Sign Up Now: Start Growing Your Net Worth With Smarter Tracking

Here are his two cents, including what reasons are valid for buying a new car and what to look for in a used car.

New or Used Cars: Which Should You Buy?

Generally, DeMuro is a fan of used cars. He said he owns seven cars right now and every vehicle is used except for his Toyota Sequoia (used models didn’t exist at the time he was purchasing the Sequoia).

There are a few reasons why he gravitates towards used cars. Manufacturers don’t make new cars quite like used car models anymore (especially when it comes to sports cars) and they’re cheaper. He also finds the ownership experience for used cars is comparable to new cars.

That said, used cars aren’t for everyone. There are still plenty of good arguments to be made in favor of buying new vehicles.

Reasons To Buy New Cars

It makes sense to buy a new car if you’re unable to find a used model of your current car. DeMuro uses the example of electric vehicles (EVs) and how there’s not a ton of used EVs on the market right now. If you have a certain model you want and can’t wait until a used version is on the market, you’re better off buying new.

Other reasons why it’s worth buying a new car are if you have the financial means to do it and plan to own this car forever. If you plan to get 20 years or more out of a new car, the initial depreciation hit won’t matter as much in the long run.

The last good reason to buy a new car? You get stressed out by the thought of shopping for a used car. Some buyers have had bad experiences with used cars or don’t know what they’re looking for or how they can assess the quality of a used car.

What To Look for in Used Cars

Cost, not surprisingly, is the top reason to shop for used cars. Most used cars are cheaper than new models simply because they have been used before.

That said, buyers need to keep more than the price tag in mind. Before you buy, DeMuro recommended learning how to read a CarFax vehicle history report. This gives you a good look at the car’s history, including anything that looks unusual or where there are gaps in service.

In addition to reading the CarFax report, DeMuro said to get as educated as possible about used cars before making a purchase.

A few ways you can go about doing this is by reading content online from trusted auto industry experts detailing everything from how to spot a ticking engine to certain car models or years to avoid. Bring a friend along who has plenty of mechanical knowledge or try to get the car checked out by a mechanic before you buy it. And pay attention to the vehicle during your test drive. How does it sound, smell and feel?

DeMuro said you avoid the common pitfalls of used cars by looking first for cars that are relatively not old (three to five years at most), then vehicles with relatively low mileage and finally sellers who care for the car and are selling it properly.

This article was provided by MoneyLion.com for informational purposes only and should not be construed as financial, legal or tax advice.

More From MoneyLion:

Written by

Heather Taylor

Edited by

Rebekah Evans