Should I buy a new or used car?

Whether you’ve just passed your driving test, are expecting a new bundle of joy, or simply feel like it’s time to try something new, buying a new car is one of the most exciting tasks to have on your to-do list.
 
It can also be one of the more complicated. There are a lot of decisions that you’ll need to make before you land on your dream wheels.
 
Do you want an electric vehicle or a more traditional petrol engine? Three doors or five? Built-in Satnav or rear camera? Leather interior or a practical standard option? Mini or Mazda?
 
These are all questions you might need to consider along the way, but one of the most important choices to make early on in your car buying journey is whether to buy a new or used car.
 
Not sure which is the right option for you? Don’t panic; think of us as your Fairy Car-mother, we’re here to sprinkle a little magic and guide you through the options available so you can hit the road in next to no time (no pumpkins required!)

Should I buy a new, nearly new or used car?

Choosing a new set of wheels is personal. This is the car that you’ll trust to get you safely from A to B every day, that you might spend hours in when you’re stuck in a traffic jam on a hot May Bank Holiday, and that’ll take pride of place on your driveway.
 
You’ve possibly already got a make and model in mind, but when you’re ready to start shopping should you buy new, nearly new, or used?
 
The good - and bad - news is that there’s no right choice.
 
We’re not going to tell you that you need to blow the budget to buy a brand-new car but we’re also not about to say the savings with a used model are always worth the potential issues.
 
Instead, we’ll lay out everything you need to know to help make that all-important decision a little easier.

Let’s start with some quick definitions:

New car

A new car is a brand-new model that has never been owned by anyone else and you’ll usually have ordered direct from the manufacturer.

Nearly new

A nearly new car will be either an ex-demonstration model or a pre-registered car the dealership bought to meet its sales targets. The exact age of a nearly new car can vary but it’ll typically have less than 5,000 miles on the clock.

Used car

A used car will have had at least one previous owner and may have several thousand miles on the clock.

At a glance, what are the differences between the options?

Buying a new car

There’s something special about a brand-new car, whether it’s that fresh-out-of-the-box shine, the perfectly clean upholstery, or its distinctive smell.
 
New models typically represent the manufacturer’s best work so far: their most ergonomic design, the most comprehensive safety features, the cleanest emissions, and the most sought-after tech can all be part and parcel of a brand-new car.
 
Of course, you’ll pay a premium for the privilege and, if you’re buying with a hire purchase (HP) or personal contract purchase (PCP) finance loan because you plan on keeping the same car for a while, you might be at risk of negative equity as it’ll start to lose value as soon as you get behind the wheel.

Pros

• You can customise the car to suit your exact specification
• You won’t have to worry about getting an MOT for the first three years
• You might benefit from better fuel efficiency, safety features, and advanced tech
• It’ll likely have a full manufacturer’s warranty
• You won’t need to worry about any hidden vehicle history
• You could get access special offers or low interest rate finance deals

Cons

• You’ll likely pay a premium for buying a brand-new car
• You might have to pay a higher insurance premium
• You may have to wait a while for the car to be ready especially if you’ve made any customisations
• Your car will start to depreciate (lose value) as soon as it leaves the showroom

Buying a used car

If you’re considering buying a used car, you’re not alone; approximately eight million used cars are sold in the UK every year.
 
And that’s for good reason; used cars tend to be cheaper, easier to get if you need new wheels quickly, and hold their value for longer as the fastest years of depreciation are already over.
 
The price you pay for this budget-friendly option is uncertainty. Whether your used model has had just one or two careful owners or a more chequered past (no judgement here), it could come with hidden faults and damage that can mean you’ll end up becoming a regular at your local garage.

Pros

• You might bag a bargain and pay a lot less than you would when buying brand-new
• You’ll likely have a lot of makes and models to choose from
• You could miss out on the fastest years of depreciation
• You could enjoy peace of mind with an extended warranty
• You don’t have to wait for the car to be delivered from the factory

Cons

• The car could have pre-existing faults or damage
• You might not have access to its full history
• There’s a small risk that it might have been clocked or tampered with
• You might not be under warranty any more
• You’ll be responsible for regular services and its annual MOT

Buying a nearly new car

The exact definition of a nearly new car can vary but these models will typically come from the dealer’s demonstration fleet or form part of its pre-registered stock (cars they bought to meet their sales targets). They will usually have less than 5,000 miles on the clock and, in some cases, could be less than a year old.
 
This means nearly new models fall somewhere in between used and new models – and share many of the benefits of both. They can be cheaper to buy yet still fitted with many of the mod-cons that make brand-new cars so desirable.
 
The compromise you make is that there are less models available so you might not have a big range to choose from and you won’t be the first person to get behind the wheel – it’s not quite the new car feeling, but it’s pretty close!

Pros

• You could avoid the fastest years of depreciation depending on the age of the car
• You could find a bargain compared to buying a brand-new model
• You’ll still have access to fuel efficient, modern models that might have more up to date technology and safety features

Cons

• You won’t be the first name on the car’s registration document
• Your car’s resale value will likely be lower than a brand-new car
• You won’t be able to choose the specification (although the dealer spec is usually pretty good)
• You’ll have a more limited pool of options to choose from
• You’ll miss out on that new car feeling

Which option is right for me?

There’s no right or wrong answer when it comes to choosing your dream wheels. There are pros and cons with every option and any car, no matter its age, can develop faults. It’s all about your personal circumstances, priorities, and financial situation.
 
If you’ve got a strict budget and enough car know-how (or a mechanically minded friend) to be able to check over your potential new wheels before taking the plunge, a used car could help your money stretch further. This might also be the right choice for you if your credit score could do with some TLC and you’re limited on the amount of car finance you can borrow.
 
On the other hand, if you can afford to splash the cash and want to tailor your new car to your exact specifications, a brand-new model might be a better fit. You could choose your favourite colour, benefit from the latest safety features, and upgrade the sound system while enjoying the peace of mind that comes with knowing you’re covered by the manufacturer’s warranty.
 
Nearly new cars occupy the middle ground. They can have less impact on your bank balance but still come with a lot of those new features that make car enthusiasts’ hearts beat a little faster. You won’t have the luxury of choosing the exact specification and you won’t get that new car smell (that fresh Alpine Pine), but the cost savings could be well worth the sacrifice.