Buying a car can be stressful, whether it’s your first or your fifth. There is a lot to consider - the car itself, insurance, petrol costs, road tax, MOT and service costs and that’s before you’ve picked the perfect colour. If you want to save up for a new (or new to you) car, we’re here to help you decide whether a brand new or used car will suit you best.

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New Car

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It can be easy to be sucked into buying a brand new car - you’ll be the first owner, you can choose exactly what you want and you have a range to choose from. However, there are still pros and cons to consider.

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Pros

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More reliable - A newer car means less mileage and therefore, potentially less problems.

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More up-to-date - Buying a new car means that you can have access to newer features. Sometimes these are functional, other times they are more luxurious - did you know a lot of cars now have built-in chair massagers?!

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Warranty - When buying a new car from a dealership, any issues are covered under a warranty so you can have more peace of mind.

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Cons

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More expensive - Of course, more often than not, a newer car will set you back more so you need to determine your budget first.

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Higher insurance costs - Newer cars tend to be more expensive to repair or replace in case of an accident, so insurance costs will be higher.

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Lose money quickly - new cars depreciate faster than older cars.

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For example, a new Peugeot 108 that was worth £13,320 in 2021 would now be worth £9000 (14,000 mileage) - a total loss of around 33%. Compare that to a used Peugeot 108 bought in 2021 for £5200 (30,000 miles) is now worth around £4600 with 60,000 miles on the clock - a total loss of 12%.

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Used car

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Now over to the humble secondhand car. Yes, there may be less fancy features but there are still pros to a used vehicle.

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Pros

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Lower upfront cost - Secondhand cars will, on average, cost less money as you will not be the first owner.

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Lower added costs - Insurance costs will be cheaper as older cars will be cheaper to repair - for the most part!

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Slower depreciation rate - As we’ve seen above, if you come to sell the car in a few years, it will have lost less in value than that of a newer car.

Bigger choice - You may find more models available for your budget if you have more to spend on a used car.

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Cons

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Less reliable -  If you’re paying £1000 every year for your service, when the car itself cost £3000, is it worth it?

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No warranty - You may not be covered so this is something to consider.

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‍No History - Do you have access to the full service history of the car? Make sure you buy from a reliable seller so you’re not burdened with a load of hidden problems as soon as you get behind the wheel.