When it comes to buying a car, many people think the choice boils down to new vs. used—but a recent poll conducted by CarInsurance.com reveals that buyers have a different perspective.
We found that a staggering 85% of car buyers care more about the specifics of the car — its features, safety ratings and performance – than whether it’s new or pre-owned, according to a survey of more than 1,000 readers.
So, what drives car buyers today? Let’s break it down.
- According to our poll, 85% of car shoppers prioritize getting the best deal over whether a vehicle is new or old.
- 13% of respondents prefer buying new cars instead of used vehicles, according to CarInsurance.com’s survey.
- A small percentage of buyers still choose used cars when beginning their vehicle ownership journey.
85% of buyers care more about the car’s specifics, not whether it’s new or old
Our recent survey found that 85% of car buyers focus on the car’s specific details rather than on its new or pre-owned status. This shift in mindset highlights that today’s buyers are more concerned about how the car fits their needs, lifestyle, and budget.
While the new vs. used vehicle debate has long been a key factor in car buying decisions, buyers now seek cars that offer long-term value, performance and features that align with their personal preferences.
Why new cars remain a top choice for 13% of buyers
Despite focusing on car specifics, 13% of buyers prefer brand-new vehicles. According to estimates from Cox Automotive’s Kelley Blue Book, new vehicle sales in 2024 reached 16.0 million, an increase of 2% from 2023 and marking the highest annual sales volume since the pandemic.
An Edmunds report shows that the average discount for new vehicles increased to $1,744 in Q3 2024, up from $828 in Q3 2023. The Cox Automotive Economic and Industry Insights team anticipates that the new vehicle market will grow by about 3% in 2025.
“I think there are three main factors that affect an individual’s decision to buy a new car instead of a used one. First, some folks have a lot of money and can buy a new vehicle and it is not a financial strain. Second, some buyers don’t want to deal with maintenance issues or the threat of a car breakdown and feel more secure in a new car. Third, whether someone is rich or not, a certain clout comes with saying you bought a car new — it’s a way to try to garner street cred for some people,” says James Brau, Joel C. Peterson Professor of Finance at Brigham Young University.
Buying a new car? Explore how much insurance you need
Why some buyers choose to start their car journey with a used vehicle
Our survey found that only a small percentage of buyers prefer used cars to start their vehicle journey. For these individuals, cost savings and the ability to find high-quality pre-owned vehicles are often the driving factors. Although the percentage is low, it highlights a trend of buyers choosing vehicles based on practical considerations.
According to a 2021 report from the International Organization of Motor Vehicle Manufacturers (OICA), new car production slowed significantly in the early stages of the COVID-19 pandemic. As fewer new vehicles entered the market, more buyers turned to used cars, boosting demand and increasing prices.
A report by Edmunds reveals that the average price of used vehicles decreased by 6.2% year-over-year, dropping to $27,177 from $28,960 in 2023.
“The amount of immediate depreciation a buyer suffers as soon as the new vehicle is driven off the lot is really big. Buying a dependable used car that is a few years old is almost always the financially wise thing to do. In addition to a much lower sales price, the insurance on the vehicle will also most likely be lower,” Brau says.
Understand how much used car insurance costs
How to shop for a new or used car
Here are some critical to-do items when you’re shopping for a vehicle:
- Set your budget: Determine how much you can afford, including the down payment, monthly payments and additional costs like insurance and maintenance.
- Decide between new and used: Consider whether you prefer the warranty and reliability of a new car or the lower price of a used car.
- Research models and features: Identify the type of car that fits your needs and compare features, fuel efficiency and reliability ratings.
- Check vehicle history reports (for used cars): Use services like CARFAX to check for accidents, title issues, or previous ownership details.
- Compare prices: Look at prices from dealerships, private sellers and online marketplaces to find the best deal.
- Inspect the vehicle (for used cars): Before you buy, have a trusted mechanic inspect the car for potential issues.
- Take a test drive: Test drive the car to evaluate its comfort, handling and performance.
- Understand the total cost: Consider the total cost of ownership, including fuel, insurance and potential repair costs.
- Negotiate the price: Be prepared to negotiate with the seller to get the best possible deal.
- Review financing options: Compare interest rates from banks, credit unions and dealership financing to secure the best loan terms.
- Read the fine print: Carefully review the sales contract and understand all fees and terms before signing.
- Get auto insurance: Shop for car insurance before finalizing the purchase to ensure you’re covered as soon as you drive off.
Check out how to compare car insurance rates for new vs. used vehicles
Final thoughts on shopping for a new or used car
While new and used cars each have their place, today’s car buyers prioritize specific needs over whether their car is brand-new or a few years old. Buyers are more informed, with a clearer understanding of what they want from their vehicle. Car buyers are no longer just asking, “Is it new or used?” but rather, “What’s in it for me?”
Resources & methodology
Sources
- COX Automotive. “Cox Automotive Forecast.” Accessed January 2025.
- Edmunds.com. “Price Gap Between New and Used Vehicles Report.” Accessed January 2025.
- OICA. “Global Auto Production in 2020 fell 16% due to the COVID-19 Crisis” Accessed January 2025.
Methodology
CarInsurance.com conducted a survey using a poll, inviting website visitors to share their preferences when shopping for a car. 1,000+ respondents participated in the survey, which asked questions about whether they preferred buying a new or used vehicle.
Participation in the poll was voluntary, and no personal identifying information was collected. The CarInsurance.com editorial team analyzed the results, and the story is based on the feedback and data collected through that poll, as well as publicly available industry reports.
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Laura Longero
Executive Editor
Laura Longero is an insurance expert and Executive Editor at CarInsurance.com, where she specializes in helping consumers navigate the complexities of the financial and insurance industries. She has 15 years of experience educating people about finance and car insurance. Prior to joining CarInsurance.com, she worked as a reporter and editor at the USA Today Network. Her expertise provides readers with practical guidance, helping them make informed choices about their financial and insurance needs.
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Leslie Kasperowicz is an insurance educator and content creation professional with nearly two decades of experience first directly in the insurance industry at Farmers Insurance and then as a writer, researcher, and educator for insurance shoppers writing for sites like ExpertInsuranceReviews.com and InsuranceHotline.com and managing content, now at CarInsurance.com.
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Nupur Gambhir is a content editor and licensed life, health, and disability insurance expert. She has extensive experience bringing brands to life and has built award-nominated campaigns for travel and tech. Her insurance expertise has been featured in Bloomberg News, Forbes Advisor, CNET, Fortune, Slate, Real Simple, Lifehacker, The Financial Gym, and the end-of-life planning service.