Should I Buy a New or Used Car?

Whether you're buying your first car or just thinking to make a change, it can be difficult to choose between buying a new or a used car.

This blog can help you weigh up the pros and cons to make the right decision for you. 

Should I Buy a New Car?

Buying a new car means you won’t have to deal with as much wear and tear.

You are the car’s first driver, meaning you are unlikely to have any strange smells or breakdowns to contend with.

With features like anti-lock brakes (ABS) and electronic stability control (ESC), newer cars are also – generally speaking – safer to drive.

Not to mention that you are likely to find wider finance options when buying a new car.

In the majority of cases, you will be given the chance to spread out your payments over a longer time period, with lower interest.

This can be a bit easier than paying upfront.

You will also have a warranty, which must used cars don’t have.

New cars are, of course, pretty expensive.

With car depreciation to think about as well, a new car will begin to lose a significant percentage of its value as soon as you drive it out of the lot.

 

 

Should I Buy a Used Car?

Used cars can be a lot more budget-friendly than new cars.

Used cars aren’t always falling apart like you might think – a car that is one or two years old could help you save when you take the rate of car depreciation into account.

However, you need to be careful about where you buy a used car from.

Buy from a reputable source and do a comprehensive background check of the vehicle’s history, car service history, and MOT history.

Make sure you find out if the car model shows up on any car recalls list too.

Other downsides to buying a used car include a lack of warranty and a lack of control – you won’t get to customise a used car or ask for a certain colour, for instance.

 

What About Buying a Nearly New Car?

If you don't wish to buy a new or used car, then a nearly new car may be a good alternative.

Nearly new cars are under a year old and have less than 5,000 miles on them. 

Most nearly new cars come from a dealer's demonstration fleet, or from their 'pre-registered' stock. 

A 'pre-registered car' is a brand new car that has been registered with the dealer as its first official owner. 

As dealers and regional offices of global manufacturers have sales targets to reach, registering a car with the DVLA can help them meet these targets. 

This means that you can get a brand new car at a significant discount over cars that have still to be registered.

On the downside, as manufacturer warranties begin when a vehicle is first registered, there will be less time left on the warranty. 

As there is an additional name on the registration document, this will also lower the vehicle's resale value. 

Cars that are less than 12 months old with fewer than 10,000 miles on the clock are also classed as nearly new. 

This means that you can make the most of an almost new car that has already been through the worst stages of its depreciation.

You won't get a say in the colour or spec of the vehicle, though. 

Not to mention that less of the manufacturer's warranty will remain than with a new car. 

 

What About Part-Exchange?

When you exchange your current car to a dealer in return for money off of your new one, this is known as part-exchange. 

You may not get as much in part-exchange as you would if you sold your car separately, but this is a good option if you want to simplify the overall process. 

 

How Do I Buy a Car?

Set a Budget

When deciding between buying a new or used car, the most important factor will be the cost. Pick a vehicle that you can actually afford and browse with a set budget in mind.

Setting a budget can keep you from overspending.

You should factor more than just the purchase price into your budget. There are plenty of other running costs – like car insurance, road tax, fuel, and MOTs – which you will need to consider.

These are some of the inevitable costs that come with car ownership, so it helps to think about them in your overall budget.

A car dealer may try and convince you to spend more – but that doesn’t mean you have to!

 

Buy a Car from the Right Place

It is incredibly important that you buy your first car from a reputable source.

Buying from a private seller could mean you end up with a car that has a lot of problems to deal with.

You may be better off buying from a dealership if you can, or from a private seller with a good reputation.

Don’t settle for the first car you find.

Take your time and compare offers from different dealers and private sellers.

You could even think about waiting for quarterly sales and deals if you can wait a little longer.

 

Inspect the Car Thoroughly

Whether you buy new or used, you will pay a lot for your first car – which is why it is so important that you check the vehicle over before you buy.

If you are buying a new car then you will be protected by law and covered with a warranty, but it is still worth giving the car a visual check before committing to the purchase.

Look at both the interior and exterior. You could find a scratch when you get the car home – it will be difficult to prove that this didn’t happen after you drove the car away from the lot.

Make sure you review the car’s history too – especially if you’re buying a used car.

The car should come with a vehicle log book (V5C) and MOT.

If the person you are buying from doesn’t offer the right paperwork – or it seems incorrect – you should not buy from them.

When buying a second-hand car from a dealer, you will have some protection.

If you buy from a private seller this likely won’t be the case.

 

Take the Car for a Test Drive

Even if you think you’ve found the right car for you, you should definitely take it for a test drive before buying.

When you’re behind the wheel, you might find out that this car is too powerful for you or is the wrong size.

Pay attention to the vehicle’s performance – especially the brakes and the clutch – during the test drive.

Make sure that you push the car over 60mph at least once during the test drive.

Issues with the front of the vehicle can be masked whilst driving at low speeds.

Look for smooth gear shifts and responsive braking.

If the steering wheel vibrates, the car pulls to the side, or the clutch doesn’t bite until it is almost fully engaged, then the car may have issues that need to be addressed.

You may need to have insurance in place for the test drive, especially if buying from a private seller.

 

Don't Rush

The car you buy should hopefully be with you for a few years, so you don’t want to rush the research and viewing process.

You may wish to take a friend or family member with you to look at used or new cars so that you can get a second opinion.

 

Tax and Insure Your New Car

Car insurance is a legal requirement if you own a roadworthy car.

It is against the law to drive a car without a valid car insurance policy, so your car must be taxed to use it or keep it on a public road.

Likewise, you cannot keep an uninsured car on a public street.

The car must also have a valid MOT certificate.

It is illegal to drive a car without a valid MOT – except in very specific circumstances.

Only a car that has been registered as ‘off the road’ can remain uninsured and untaxed, but you must – as the name suggests – keep the vehicle off the road (e.g. in a garage).

Please note that you cannot tax a car if it doesn’t have an insurance policy in place.

Similarly, you must have a valid MOT certificate in order to tax your car.

That being said, you can get an MOT if your car doesn’t have tax.

Whilst your car insurance may be valid even if your car isn’t taxed or MOT tested, some insurance companies have this as a condition of the policy.

It is illegal to drive a car without tax, and you could receive a heavy penalty for doing so.

 

Buying a Used Car from a Dealer

If you are buying a used car from a dealer, know that many used car dealers have their vehicles independently checked and will be members of a trade association.

By law, used car dealers must sell vehicles which are fit for purpose, quality, and legal to drive.

These vehicles must match the advert description.

Remember, dealers aren’t liable for any fair wear and tear or damage you cause through accident or misuse of the vehicle.

 

Buying a Used Car from a Private Seller

When buying a used car from a private seller, you won’t have much recourse if something is wrong with the vehicle or not as you expected.

You should check all the paperwork thoroughly.

If the private seller can’t provide documentation or the car is registered in a different name, contains mistakes or details that don’t correspond, you should be suspicious.

The vehicle should also have a current MOT.

Is the mileage consistent with the age and look of the car?

Whilst it is possible for old, well-maintained cars to have low mileage, you should be wary.

You can check the mileage against MOT test certificates and service records.

You should also ask the following questions when buying a used car from a private seller:

• Is the paint finish even?
• Are there signs of unusual welding or rust?
• Do the tyres have sufficient tread?
• Is there a spare tyre, jack, and toolkit?
• Are the seatbelts working and undamaged?
• Are there fault lights on the dashboard?
• Are the washers and wipers working?
• Are the lights working?
• Do the locks and windows work?
• Is the radio working?
• Is the air conditioning system working?

When looking for signs of rust, you should check in the boot, under the bonnet, under the footwell mats and under the car.