Should I buy a new or used car? Pros and cons

Deciding between a new or used car can be tricky. The best way to start is by weighing up the various pros and cons of each option. 

Luckily, we’ve done the hard work for you! Check out our guide to help you decide whether you should buy a new or used car.

Price

New Car: It’s a given that new cars generally cost more than used cars, which isn’t ideal if you’re on a budget. If you decide to take out a loan to purchase a new car then it’s worth shopping around for the best deal. Some dealerships may even offer you a zero-interest loan.

Used Car: One of the biggest benefits of buying a second-hand car is the fact they cost less – often thousands of pounds less! This means you can potentially get a much fancier car for your budget.

Depreciation

New Car: Unfortunately, a new car loses value from the moment you leave the dealership, and by the end of year one will have lost approximately 40% of its original value. If you use your car a lot, then the value may decrease even further. 

Used Car: Luckily, depreciation slows as cars get older, which means buying a used car may be a better financial choice. If you don’t drive your car lots (under 10,000 miles a year) then it may be worth choosing a car with higher mileage. 

Associated Costs

New Car: In general, associated costs (e.g. insurance) are higher with a new car. However, there are financial benefits to buying a new car from a dealership. Although you are paying considerably more, you will get a full warranty and you may receive some perks from the dealership, such as free MOTs.

Used Car: A benefit of buying a used car is that some associated costs tend to be lower than a new car. As they are typically less valuable, insurance premiums for used cars can be as much as 25% less. You also avoid any dealership admin fees.

Environmental issues

New Car: Although new internal combustion engine (ICE) cars tend to emit fewer pollutants than used ICE cars, environmental damage often occurs during a car’s production (e.g. leakage of harmful chemicals). Also, while buying a hybrid car may seem like an environmentally-friendly option, they still contain lead-acid batteries. Although these batteries are recyclable, they are made using nickel, which when mined causes great ecological damage.

Used Car: In some respects, buying a used car can be a greener option as consumers don’t directly contribute to the environmental damage created by the manufacturing process.

Conclusion

In conclusion, when wondering whether to buy a new or used car, you’ll have to consider several factors. whilst new and used cars both have advantages and disadvantages, used cars make the better buy for most customers. 

As well as saving you a huge amount of money from the get-go, on-going associated costs are often lower. Used cars also depreciate less in value. Finally, used ICE cars can be considered greener, as a considerable amount of environmental damage occurs during the manufacturing process.