New vs Used Cars: Which Should You Buy?
The choice between new and used vehicles has always been one of cost. New cars are always more expensive with used cars offering a good balance between cost, age and desirability for savvy buyers.
The choice is very much a personal one but there are advantages and disadvantages to both. Here we’ll present both sides of the argument to help you decide what’s right for you.
- How Will You Be Paying?
Buying new will give you access to dealership finance options which usually offer attractive manufacturer contributions. Your choices will include traditional ‘Hire Purchase’ where you obtain finance for the entire value of the vehicle, to be paid over a term of your choosing, as well as the newer ‘Personal Contract Purchase’ which gives you the option to hand the car back after 2 or 3 years.
Buying used gives you less financing options, usually just ‘Hire Purchase’ from a dealership or used car garage. Some people choose to opt for a personal loan from a bank or to pay cash instead.
Buying new will see you paying whatever the manufacturer has decided the RRP is for the car you’re looking at. At the lower end of the market, new cars can be found for as little as £10000 with the upper end of the market hitting seven figures for luxury vehicles. Manufacturer pricing is based on the features provided with each model as well as an element of badge pricing where the manufacturers of perceived luxury vehicles can charge more.
Used cars, depending on age and type, will be cheaper due to suffering from depreciation. This can be a good thing as it means that someone else has already taken the initial loss on the vehicle from new. For high performance vehicles with large engines, you can often find deals that offer great value for money as most people are put off by the potentially high running costs.
Newer cars are generally more reliable than older cars as a rule of thumb. This will vary by manufacturer and model as some cars are much more reliable than others. With a new car, you’ll be covered by a warranty period anywhere up to 7 years (or the mileage equivalent) in length. This alone is a great incentive to buy new as it means that any major faults will be rectified by the dealer.
Depending on age and mileage, used cars can be just as reliable as new cars. If buying from an approved used car dealer such as Sandal Wakefield BMW or one of the many others in the Yorkshire area, you will often benefit from a comprehensive warranty period. It might not be as long as when the car was new but it still offers great benefit.
Whatever you decide, newer cars, built within the last 10 years or so offer a great step up in refinement and quality over models of old. You can be assured that a newer car will be fuel efficient as well as safe with most cars scoring highly on the NCAP tests.