Does one of these use more resources than the other?

What is happening differently in the background for these two code blocks? Would one be considered "better" than the other?

My thought is that Example2 might be worse because it might have to wait for the garbage collector to dispose of the item, but I don't know enough about the garbage collector to know if that is true.

Example1:

ListItem item;
for (int i = 1; i <= 32; i++)
{
   item = new ListItem();
   //do some stuff
}

Example2:

for (int i = 1; i <= 32; i++)
{
   ListItem item = new ListItem();
   //do some stuff
}