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Buying a car

There are pros and cons to buying a new or used car. There’s lots you can do to make sure you don’t end up with a car that’s likely to need a lot of work doing to it, the inspect a car section gives you tips about this. In this section we take a look at the pros and cons of buying new or used.

New or used

If cost isn’t an issue for you, then there are definitely some pluses to buying new. Firstly, you’ll get a full manufacturer’s warranty, which usually lasts for three years – great for peace of mind. You won’t need to put the car through an MOT for three years either, so that’s another positive.

But did you know that on average a new car will fall in value by 40% in the first twelve months and this figure rises to 60% by year three? Depreciation is in fact the biggest cost of running a new car – it does vary depending on the make and model, so it’s well worth checking a car depreciation table before you make your choice.

With a new car you can take advantage of interest-free finance as well, which can offset some of the depreciation cost.

One other thing to check is whether your car insurance policy covers you on a ‘new for old’ basis. Some insurers will only pay out the value of the car minus depreciation. But with a Sheilas’ Wheels car insurance policy if you have an accident and your car can’t be repaired or it is uneconomical to repair, if it’s less than one year old and you or your partner have been the first and only owner and registered keeper, we’ll replace it with a new one.

A big positive of a new car is that you don’t have to compromise – it’ll be exactly to your specifications. In addition you’ll get all the latest in terms of features and fuel efficiency. There’s no doubt that new cars look, feel and smell nice, but remember buying new does come at a cost.

On the flipside, the cost saving of going for second-hand means you may be able to afford a better model. There are lots of “owner satisfaction reports” that will help you to see which models are a good deal and take some of the guesswork out of making a decision. Also if you buy through a dealer you can still get 12 months’ warranty, or you could take out your own policy to give you a warranty.

Once you’ve decided which route you’re going to go, you need to consider exactly what you want before you start scanning the classified ads, or before you step into the showroom. Remember, it’s very easy to be charmed by a persuasive salesperson, so it pays to be clear about what you need before you set out!