Should I buy a new or used Toyota Highlander?

We've just completed our test of the 2014 Toyota Highlander, and this redesigned midsized SUV continues to perform well and stands at the top of the category. But before you rush to the dealer to buy one, consider whether a used model may be a better option.

For its third-generation, there were a number of improvements made to the Highlander. Handling is now more responsive, making the SUV more enjoyable to drive than before. One can now configure the Highlander to accommodate eight passengers, thanks to the wider three-passenger third row, but that aft bench is still only best for children. Fuel economy averaged 20 mpg overall in our tests—two mpg better than the previous-generation. Plus, the Highlander scored an Acceptable in the new Insurance Institute for Highway Safety’s small offset crash test, which is fairly unique in this class. (The Honda Pilot, Kia Sorento, and Mazda CX-9 scored Poor, costing them their Consumer Reports recommendation.)

Negatives are few: Blind-spot monitoring and forward-collision warning technologies are limited to the pricey, top-level Limited trim, adding $1,400 to the cost. Plus, the top trim can only seat seven people. Go beyond the surface level and some interior trim looks a bit low rent, and it’s not as quiet or plush riding as the previous generation Highlander.

The last-generation Highlander scored high for its refinement, quiet interior, ride comfort, power, fuel economy, and flexible and roomy second-row seat. There is no question that those traits remain appealing for buyers, especially since the new Highlander represents a subtle evolutionary advance.

Sure, buying used sacrifices infotainment upgrades, bumper-to-bumper warranty, improved crashworthiness, and lower new-car finance rates, but it can add up to significant savings on a reliable model if you choose carefully. Consider the budget you’d need for a new small SUV, which actually gets you behind the wheel of a used midsized SUV.

As our pricing chart illustrates, the savings on a three-year-old Highlander can easily be more than $10,000 depending on the trim level. With the new Highlander at dealerships, there may be a fair number of trade-ins from current owners looking to upgrade, aiding choices and prices. It’s best to compare the trim levels for the used and new models to determine what features are available. We selected the popular, well-equipped Limited line for the used comparison.

Buying new is always alluring, but you can save a significant amount of money on a used car.

—Liza Barth

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