The pressure on household budgets means British car buyers are increasingly considering whether to buy new or used vehicles. With this emphasis on value for money, the market for second-hand cars is growing. In the UK, car prices have fluctuated, and the global shortage of new vehicles due to supply chain disruptions has caused further shifts in buying trends.
Whether you’re a first-time buyer or looking to upgrade, understanding the benefits and drawbacks of buying new versus used is essential. Here’s a guide to help you make an informed decision.
The concept of used cars
One of the primary reasons people turn to used cars is the potential for savings. Modern vehicles are more durable than ever, so even a used car a few years old can offer reliable performance for years to come. Not only are used cars cheaper than new ones, but today’s pre-owned vehicles often come with advanced features like infotainment systems, safety tech and fuel efficiency that make them attractive choices.
Depreciation benefits
New cars lose a significant proportion of their value in the first few years, with estimates suggesting they can depreciate by as much as 20-30% in the first year alone. The amount of depreciation will depend, among other things, on its size, mileage and emission standards. However, when you purchase a used car, much of that depreciation has already been absorbed by the previous owner. This means you’re less likely to lose a large sum when it’s time to sell or trade in.
Affordability and variety
Buying used often means you can afford a higher-end model for less money than buying a new. For instance, a two-year-old luxury car with advanced features may be available at a fraction of its original cost. The variety of used cars on the market is also vast, from small city cars to luxury SUVs, allowing buyers to choose something that fits their budget and lifestyle more easily.
Vehicle history and condition
While buying used can save money, it does come with risks. Unknown vehicle history or hidden wear and tear can be concerns, particularly if the previous owner did not maintain the car properly. To mitigate these risks, get vehicle information from DVLA such as MOT expiration and vehicle tax.
Certified pre-owned (CPO) programmes offer additional peace of mind. These cars are rigorously inspected (they aren’t put up for sale until they pass), refurbished and often come with a manufacturer-backed warranty, making them a safer choice for those worried about reliability.
Insurance and registration savings
For younger or first-time buyers, purchasing a used car can result in lower ongoing costs. Insurance premiums for used cars are typically lower than for new cars because the value of the car is less. Additionally, registration fees are often cheaper for used vehicles, helping to keep overall ownership costs down.
