Buying a car
There's just so much choice out there; you could opt for a new model or sidestep the depreciation with a second hand purchase. Whatever way you sway, we've put together a list of the good and bad points involved in buying new vs. buying second hand.
Advantages of buying a new car
With a new car you can pick and choose what you want - the colour, the spec, the extras - and you get that lovely new car smell. It will also be under warranty, often with unlimited mileage, if anything should happen.
Disadvantages of buying a new car
The big disadvantage with buying a new car is the depreciation. According to research by the RAC, buyers are urged to not overlook a vehicle's depreciation before they make a purchase. The amount of depreciation can change from car to car¹.
If you're buying a new car through a finance scheme there is interest payable, even as the car depreciates in value.
¹Source: the Royal Automobile Club (RAC).
Advantages of buying a used car
If you're on a tight budget, buying a used car will get you the most car for your cash and, provided you do your research, there are bargains to be had. Along with a lower initial price, there's not also not as much depreciation on a used car as a new one.
Disadvantages of buying a used car
A used car will, on average, require more maintenance and repairs than a new car. There's less chance of a used car coming with a warranty and there may just be some things you'll never know about a car. You're buying a vehicle that someone else has owned and driven.
As long as you do your research and take some basic precautions you should be able to find a used car that's right for you.
Whatever option you decide to go with, make sure your car insurance is valid and up to date for your new vehicle.