Is it Worth Buying a new car Versus Second Hand?

Apart from your home, buying a car is often one of the most expensive items you’ll ever purchase.

That means rather than leaping in at the deep end and buying the first car you like the look of, it’s well worth doing some research into what options are available before you buy.

One of the biggest choices you will face is whether to buy spanking brand-new or choose second hand instead.

Read below to find out a bit more about the pros and cons for each.

The cons: new car

The value of a new car plummets spectacularly as soon as you drive it from the forecourt; in fact, it can lose as much as 25 per cent in value immediately.

Further to that, after the first year of ownership the value of your once-new car could drop to 40 per cent of the price you bought it for just 12 months earlier.

New cars are also a target for car crime and insurance premiums for new cars in certain areas can be higher. If new cars are damaged, their value will drop even further unless they are totally repaired as new.

The cons: second hand

When buying a second-hand car, you need to do your research to make sure the price and the motor are both right. When a car has been pre-owned, there could be things wrong with it that may not be immediately apparent - even if it has had a valid MOT and has a full service record.

Make sure you check these documents and take the car for a test drive before you buy.

The pros: new car

New cars come with a warranty of (usually) three years and are exempt from MOT for the same period. This means you don’t really have to worry about maintenance for this time, although regular servicing is still highly recommended.

More importantly, you’re now in possession of a spanking new and fantastic-looking vehicle that no one else has driven.

The pros: second hand

The number one reason to purchase a second-hand vehicle is the price. Even a car that’s a decade old can still run like new and will cost a fraction of the price compared to when it was new. Many luxury second-hand cars will still have retained the accessories and trim their first owner enjoyed and they may well have the elegant style of yesteryear, depending on how old and what make it is (this may not apply to a Robin Reliant).

Still, buying second hand can seem like a minefield, and further advice for buying second hand is available out there, and is well worth checking out.

Verdict

Essentially, you have to choose what type of vehicle is best for you depending on your budget and expectations. If you’re struggling to raise the cash in any way, it’s worth seeking help, not least if you’ve got credit problems – and Car Loan 4U offer guaranteed car finance.