October 31, 2019 at 3:11 PM
With so many attractive new car deals on the market and almost impossible to avoid adverts on social media, tv and on billboards across the country, it's no wonder new car sales are so high. But, looking a little further and we think we might make you rethink whether you should step into the used car market. Here are 7 reasons to buy a used car instead of a new one.
It is almost universally true that new cars lose money – lots of it! So much in fact the most cars will lost up to 50% off their original value in just three years which on a base model Ford Focus would see you lose around £9,000 in just 36 months!
Used cars have already had this big drop, even if you buy nearly new. Nearly new cars, for example, have been registered and are running their warranty so a big chunk of that depreciation will have been lost before you buy and on an older used car, with low miles, a full service history etc will hold value a lot better, especially a limited or prestige model.
This is where depreciation really helps the used car buyer. Not all of us can afford a new luxury, sports or prestige car, especially from some of the marquee brands like Mercedes, Land Rover, BMW and so on.
But, a model at 5 years old is likely to cost as much as 75% less than it’s new price. A new BMW 320i Sport for example currently retails at £32,500 and you can pick up year old models for just ~£16,000.
If you go for older cars then you can really get more bang for your buck! For example, a Land Rover Discovery SE at 10 years old can be bought for around £5,000, with a higher mileage albeit – these cars were over £50,000 new!
If you are comfortable buying an older used car, the value for money can be incredible!
One big worry that puts some people of buying a used car is reliability and the costs you might run into if something major goes wrong with an old car. This is where used car warranties come in.
Garages will usually offer a limited warranty on used cars but this can be extended through companies like RAC to cover all major mechanical and electrical systems in your car, leaving you with only maintenance to think about, like you would with a new car!
And that leads us into the cost of maintenance. Obviously the more prestige the brand of car you buy, the more prestige the price, even on used cars. But as a rule of thumb, older cars will cost less in the event of parts being required. As the cars depreciate and new models get introduced, even the parts depreciate the longer they sit on shelves.
And once you’ve gotten past that warranty phase and if you don’t have a service plan, you will probably be happier to go to non main dealer garages for your services and maintenance which can save a small fortune! Labour rates can differ by hundreds of pounds alone!
This is where the used car market comes into its own! The variety of new cars on the market will be quite limited at any one time, with that year or eras models being all that’s on offer.
In the used car market you can find limited edition gems, your favourite year of a particular model or cars / brands that simply don’t exist anymore. You can hunt for the car you always wanted from the time you wanted it or find a car in a unique colour.
And, as the car industry moves toward more economical cars and hybrid and electric motors, which of course is a move that aims to benefit us all, the used car market will become the last place to find certain cars and certain engines. Whilst no one Is advocating choosing polluting cars over clean cars, there is good reason to buy used and reduce the environmental impact of new car production while picking up a car that is no longer in production!
Something that might not jump out about buying a used car is that you might find yourself buying a MORE reliable car than new. An old car with one owner is unlikely to have been troublesome to maintain due to the years of motoring someone has been happy to put into it.
There are also a host of resources and communities online where advice on older car models and which ones to avoid is plentiful. A new car may not have been on the road for long enough for problems to have appeared so buying new can offer a little more peace of mind on that basis.
And if these reasons weren’t enough to make the case for buying used cars, then everyone’s least favourite part of motoring (it maybe draws with fuel prices) is insurance.
As a big part of the pricing on insurance relates to the value of the car, you could find yourself saving quite a lot of money buying the same car with a few extra years on it. The car will have depreciated greatly within a few years, as mentioned, so it will cost less to insure – even if everything else is equal!