There are pros and cons of buying both new and used cars. The best choice for you will depend on your personal priorities, budget, timeline, and what you need from your new set of wheels. While new cars can be more expensive, they can also be safer if you’re new to the road but used cars can be more affordable for younger drivers.
Buying a brand-new car
A brand-new car is one that you’ll buy fresh from the factory – and you’ll usually be its first registered owner.
If you love the idea of an up-to-date model, fully kitted out with top of the range safety features, sound systems, and more, then a new car could be the best fit for you.
You could even customise it by choosing your favourite colour or adding extras like a sunroof or reverse camera.
Of course, these perks do come at a price, and you might need to wait a while, especially if you’ve made it your own.
Pros of buying a new car
- You’ll be the car’s first owner
There’s no feeling quite like being the first person to own and drive a new set of wheels. You also won’t need to worry about any issues caused by the previous owner.
- You can customise it
Depending on the car you choose and where it is in the production line, you might be able to have a say in its colour, specification, tyre rims, and more.
- You’ll get a manufacturer’s warranty
Most brand-new cars come with a manufacturer warranty that can provide some peace of mind if issues do come up. Some dealerships will even throw in roadside assistance for free.
- You won’t need an MOT
A newly registered car won’t need to pass an MOT for the first three years.
Cons of buying a new car
- You’ll have to spend more
Unless you’re buying a sought-after vintage model, a brand-new car will almost always be more expensive than a used one.
- You might have to wait
With a brand-new model, you probably won’t be able to turn up at a dealership and drive away that same day. A new car can take weeks – or even months – to be delivered from the manufacturer.
- You could have a higher insurance premium
New cars can be more secure than older models but they’re also more desirable to thieves. They can also be more expensive to replace, pushing up your premium.
- You’ll need to deal with depreciation
While all cars lose value over time, the rate of depreciation is quickest in the first three years of a car’s life. In fact, your new wheels could lose up to 50% of their value in the first few years.
Buying a used car
A used car is one that has at least one previous owner. That means a car can qualify as used if it’s had one careful owner and just a few thousand miles on the clock or if it’s over ten years old and has travelled over 100,000 miles.
If you’re considering a used car, you’re not alone; approximately eight million used cars are sold each year in the UK. Why? They’re cheap! Or at least cheaper than brand-new models.
When it comes to the repair risks and maintenance costs, buying an approved used car can offer peace of mind. But you probably won’t be covered by a manufacturer’s warranty and so will need to budget for any repairs as well as maintenance like your annual service and MOT.
Pros of buying a used car
- You’ll save money
All cars lose value over time, so you can likely buy a model that’s just a few years old for a much lower price than a brand-new one.
- You could buy a higher-spec model
As your budget can stretch further with a used car, you might be able to upgrade to a higher-spec model with extra features you wouldn’t be able to afford when buying new.
- You won’t have to wait
No matter whether you’re buying from a dealership or private seller, your new wheels will likely be ready to drive away as soon as the paperwork is sorted, and you’ve signed on the dotted line.
Cons of buying a used car
- Your car might have issues
One of the biggest downsides of buying a used car is that it might arrive with pre-existing issues. Depending on its condition and how it’s been driven in the past, you might have to budget for costly repairs and live with the risk of it breaking down unexpectedly.
- You won’t be able to customise your car
As you won’t be ordering your car direct from the manufacturer, you won’t be able to make changes like choosing the colour or adding extra features.
- You won’t be covered by a warranty
Most brand-new cars come with a manufacturer’s warranty but these usually only last one or two years, so an older used car won’t be covered if something goes wrong.
Buying a nearly new car
New, used – did you know there’s a secret third category? Introducing nearly new cars.
These are models that are less than a year old and have fewer than 5,000 miles on the clock.
In most cases, nearly new cars are ex-demonstration models, cars that have been used by the dealership’s employees, or ones that have been pre-registered to help them meet their sales targets.
No matter what, you won’t be the car’s first owner so it will be worth less than a brand-new model. It’s also less likely to have pre-existing issues and ex-demo cars are typically also high-spec. They could represent the best of both worlds!
Is a new or used car right for me?
The good news? There’s no right or wrong answer. Whether a new or used car is the best choice for you depends on your personal situation. Things like how much you can afford to spend, your car finance eligibility, and how you plan on using the car will all have a role to play in the conversation.
If you have a tight budget or a credit score that needs some work, a used car might be the best option for you.
In contrast, if you need a model you can rely on (and you love all the latest tech features), a brand-new model might be a better fit.
Make sure you consider your ongoing maintenance costs too. The price you pay to buy the car is one thing, but you also need to have room in your budget to cover insurance, fuel, repairs, services, and an annual MOT.
A cheap used car that burns through a lot of fuel and is constantly being checked in at the mechanics can work out. A lot more expensive than a nearly new model, even if it’s more expensive upfront.
Are used cars cheaper to insure than new cars?
As a young driver, your insurance premium is likely one of the most expensive parts of car ownership. Your policy will always be tailored to you, your car, and your personal situation – and that’s why used cars aren’t always cheaper to insure than brand-new models.
Brand-new cars often have better safety and security features than older models, after all, and it can be easier to get them repaired as parts should be available.
But, if you’ve not got the perfect track record when it comes to accidents or have to park somewhere that your car could be targeted by opportunistic thieves, a brand-new car could have a higher premium to reflect this added risk.
Should I buy a used or new car as my first car?
When it comes to big life decisions, buying your first car is right up there. If you’re trying to choose between a used or new car, the right option for you will depend on your personal situation.
But there are a few things you can consider:
Brand-new cars are more expensive than used models, but you might benefit from the latest safety features and driver assistance technology. If you’re still anxious behind the wheel, you could feel more secure in a new vehicle that’s less likely to break down.
On the other hand, used cars are usually more affordable, especially if you don’t have a lot of disposable income to play with. An older model can also be cheaper to insure.
No matter which option you choose, the best first car for a new driver will usually be a small model with a low-powered engine. Think a smart supermini rather than that dream soft top sports car for now.