Should I buy a new or used car?

Written By Andrew Brady

Is it worth buying a new car over a used model?
We explain why nearly new might be the answer
The advantages of buying a used car

“Should I buy a new or used car?” is the question thousands of drivers ask themselves every year. There are many benefits to buying a new car. But, cars today are so well built and reliable that a nearly-new model, or one with a low mileage, could give you years of trouble-free motoring.

Here we ask if it’s worth buying a new car or a used one. We investigate the pros and cons of each and even suggest a middle route that could give you the best of both worlds.

Is it worth buying a brand new car?

There are several benefits to buying a brand new car.

In the latest models all the technology should be bang up to date. That means inside the car, features such as satellite navigation or Bluetooth phone pairing are likely to be standard equipment. These may have been only optional or perhaps not available on slightly older models.

Advances in car technology are coming thick and fast. New small cars have automatic driver aids and safety features that were only on expensive premium models a few years ago. As well as being safer, new cars can be more economical and therefore cheaper to run.

New cars also come with a manufacturer’s warranty. This is like a guarantee for all major parts and can last for up to three years while some manufacturers offer up to seven-year warranties. When you buy a new car, they’re often sold with service plans that give you cheaper maintenance. And because it’s new, the car should be more reliable.

As car dealers and manufacturers have new car sales targets to hit, they may well offer healthy discounts – often called ‘deposit contributions’ – to encourage buyers. Last but definitely not least, your new car will be exactly as you want; everything from the design of the wheels to the colour of the seats will be your choice. And when you pick it up, you’ll be able to relax in that new-car smell that everyone talks about.

The disadvantages of buying new

The trouble with buying a new car is that its value will tumble the moment it becomes yours. That means if you were to sell it immediately, you’d get a lot less back than what you paid for it originally. According to the Money Advice Service, what a car is worth will drop between 15 and 30%, depending on the model, as soon as you drive away from the dealership. This depreciation is one of the hidden prices of motoring and adds to the overall cost of driving a new car.

Buying a new car is also a complicated business. You will find yourself drowning in lists of equipment that you could add to your car if money were no object. And once you’ve finally settled on a car you can afford, you’ll probably have to wait at least a couple of months before you can take it home.

Why buy a used car?

There are nearly four times as many used cars sold in the UK every year compared to new models. That gives you an enormous choice. What’s more, you won’t have to spend hours studying boring specification sheets because someone will have done the hard work of deciding what equipment to pick for you. Unless you’re particularly fussy, you’re likely to find exactly what you’re looking for somewhere in the country. And if you’re buying from a main dealer or online marketplace, you can access all the used cars on their books, wherever they are in the UK.

More importantly, when you buy a used car, someone else has suffered the depreciation. It’ll still be worth less when you sell it compared with when you bought it, but with a used car, the rate of depreciation slows the older the car gets.

With used cars you also have greater flexibility over finance. With new cars, dealers make it very difficult for you not to take their finance. Buy a used car and there are numerous finance options to spread the cost over a longer term if that’s better for your budget.

The main aspect to consider with a used car is that it is exactly that: used. But there’s many ways to reassure yourself before deciding to buy your new used car such as studying its paperwork and having a look at its complete history check. Ask the seller any questions you feel are relevant to help you decide and be sure on your purchase.

Taking this into account, you could come away with a great bargain that will see you through many happy years of motoring.

Nearly new might be a brilliant middle ground

There is a compromise between new and used. These are brand new cars that are registered but owned by the dealer. This usually means they’ve been used as a demonstrator vehicle to showcase models to customers or for test drives.

Whatever the reason, the cars are likely to be almost brand new, have hundreds rather than thousands of miles on the clock, and they’ll be significantly cheaper than a brand new model. They are unlikely to bear the scars of everyday life because if they have been used, it will only have been intermittently. And they will still be new models so there’s a good chance they are packed with the latest technology.