Used cars are more popular than brand new cars but both have their advantages. There’s endless choice when it comes to used cars and you can save when it comes to the initial purchase price. However, brand new cars can save you in the long run as they can be cheaper to maintain. It can be hard to decide whether a new car or used car is best for you, so the guide below is here to make your decision a little easier.
Should you buy a brand-new car?
Source: carwow.co.uk
There’s no denying the smell of a brand-new car and the ability to customise it to how you want but buying a new car can be expensive! They’ll also depreciate at a faster rate than used cars.
Pros:
- You’ll get the latest technology and safety features.
- You can customise it to your requirements.
- You get a full manufacturer warranty included.
- You’ll not have to pay for an MOT until the car is 3 years old.
- Brand new cars can be more fuel efficient.
- Low interest rates can be offered on UK car loans.
Cons:
- There can be long wait times on new cars.
- They depreciate at a faster rate, and you’ll receive significantly less when selling.
- The cost will always be considerably higher than buying used cars.
- Insurnace costs can be higher as they can cost more to fix.
Are used cars right for you?
Source: autocarindia.com
Used cars are the most popular amongst UK drivers. They’re cheaper than brand new cars, there’s 100s of cars to choose from and they retain their value better.
Pros:
- There’s a seemingly endless choice on the market and no manufacturer build times.
- Second hand cars are cheaper to buy and have a lower purchase price.
- By the time you get a used car, most of the depreciation has already happened and they hold their value better.
- Repair costs can be more affordable than brand new cars.
- Insurance premiums could be cheaper.
Cons:
- You won’t be the first owner and used cars can have a hidden history.
- You’ll need to pay for regular maintenance such as servicing and MOTs.
- Finance deals could have higher interest rates.
- You can’t tailor the car to your specification so you may have to make compromises with what you want.
What to consider when deciding between new and used cars:
Source: birchwoodcredit.com
If you’ve read our pros and cons above and still feel stumped when it comes to choosing between a new and used car, there are a few real-world situations below to help.
Depreciation
Brand new cars can depreciate as much as 50% in the first 3 years of ownership. As soon as a new car laves the forecourt, it will start depreciating. This means when it comes to selling your car on, you’ll be missing out.
As a used car buyer, you’ll feel the lesser effects of a car’s depreciation and the previous owner(s) will have already taken the brunt of the depreciation for you.
Car finance
Car finance deals can help you spread the cost of getting a car into affordable monthly payments. Brand new cars usually come with lower interest rates but they can have a higher purchase price so can it kind of balances the cost out. Used cars normally have higher interest to pay but a lower overall loan amount.
Reliability
Source: ackodrive.com
With used cars you won’t be the first owner and the car’s history could be amiss. When shopping for a second-hand it’s important you find out as much as you can about the car’s history to avoid buying an unreliable car.
Brand new cars are usually less of a worry as they come with newer technology and you’ll be the first person to own and drive the car.
