Buying a car can be expensive, so it’s important you get it right. One of the biggest decisions you need to make is whether to buy a new or used car. New cars are more expensive but are generally more reliable, whereas used cars are cheaper but might cost more to run.

Should you buy a new car?

Sitting in your own brand new car for the first time can be an exciting feeling. However you should think through the benefits and drawbacks of buying a new car before you decide whether it is right for you.

Benefits of a new car

A new car:

• comes with a full manufacturer’s warranty, which will give you an easy way to have many faults repaired for free. These warranties are usually around three years long but can be as long as seven with some manufacturers
• often comes with special offers such as interest-free finance
• can be delivered to your exact specification

Drawbacks of a new car

There are disadvantages of buying a new car including:

• it will be more expensive than a used version of the same model
• the value of a new car drops significantly in the first year
• new cars have to be ordered from the factory so you may have to wait for weeks or even months for your car to be delivered.

Should you buy a used car?

Buying a used car means you can save a lot of money. However, used cars are often more expensive to maintain and you run greater risks of being misled. You should think through the benefits and drawbacks of buying a used car before you decide whether it is right for you.

Benefits of a used car

There are advantages to buying a used car:

• it will be cheaper than a brand new version of the same model
• for the same money as a brand new car, you might be able to buy a better equipped or more powerful version of the model you want by opting for a used model
• you won’t have to worry as much about it losing its value (depreciation). If you buy a car that is one year old, you will have missed out on the biggest fall in value that happens in the first 12 months
• you can buy used cars privately as well as from dealers, giving you more options.

Drawbacks of a used car

There are drawbacks to buying a used car:

• a used car may not come with a warranty, although you will still have rights as a consumer if it turns out to be faulty. You can also buy warranties from independent providers for a few hundred pounds
• a used car may be more likely to develop problems from wear and tear or cost more to run and maintain
• you may not be able to get any special offers on a used car
• you can’t choose the specification of your car like you can with a new car
• there is a greater risk that you might be misled in some way – people have been known to buy used cars that are still on hire purchase or have been stolen.