In the UK the sales of used cars outnumber that of new cars by almost three to one. There are pros and cons when it comes to both types of vehicles, which we have explained below:
Buying a New Car
It’s no wonder people like to buy a new car. From the moment you walk into the dealership you are literally swept off your feet. Coffee, comfy chairs, that new car smell rushing around the office and sometimes even flowers once you have done the deal.
The car you choose can be personally tailored to suit your needs and there is complete peace of mind that it has no hidden history.
Buying new also means you’re acquiring cutting edge vehicle technology. New vehicles often come fully loaded with features such as stability control and enhanced safety systems. Finally excellent finance and warranty packages are thrown in to further sweeten the deal. However there are downsides to buying new, as explained below!
Buying a Used Car
Incredibly there are a whopping seven million used cars sold every year. This in itself presents a good argument to buy a used car, simply because of the wide range of choice available to the consumer. For a more detailed guide on why a used car may be right for you, take a look at our Buying a Used Car guide.
The biggest pro however, is that you aren’t hit with the immediate price depreciation. If you buy a new car the price drops by approximately 20% the moment it leaves the forecourt. Furthermore they are only worth approximately half their original value when they reach just three years of age. In some cases this can be even more!
In recent years manufacturers are offering increasingly long warranties, sometimes up to seven years. This gives the used car buyer extra peace of mind as it often still applies after they purchase the vehicle.
Buying from a used car dealer can offer you peace of mind, just like a new car dealership. They can provided extended warranty packages, insurance deals and finance solutions that are often very competitive. Buying in this manner will of course be slightly more expensive than buying privately, but the comfort of knowing your purchase is secure could well be worth the extra cash. To be sure you are buying from a reputable source, use a trusted dealer from our extensive list.
If you are looking for the cheapest deal possible, then buying privately, or in fact from auction is the best option. Our advice is to read our tips on this method here, to ensure you don’t get caught out.
Buying a Nearly New Car
The third option that people often forget is the ‘nearly new’ category of vehicles. Often dealerships will sell off ex demonstrators at a lower price. This can, in some cases, provide the best of both worlds to the consumer but it largely comes down to personal choice.
You will not lose all of the depreciation value like a new car, but it still won’t offer the same savings as buying used. Of course the car will also lose that ‘new car’ feel but the mileage will still be low enough for it to drive well.
Overall, you cannot spec the vehicle yourself and their availability may be limited. Don’t forget that unlike a new car, there will also be an extra name on the registration documents. When it comes to selling the vehicle again this will lower its value.