Should I buy a new, nearly new or used car?
Knowing what type of car to buy can be a difficult decision. We share the three main options to see which one will suit you best...
The UK loves used cars. According to the Society of Motor Manufacturers and Traders (SMMT), more than 7.6 million used cars exchanged hands in the UK during 2024 – compared to just under two million new models.
Many drivers buy a used car since it’s almost always the more affordable choice – but that doesn’t mean it’s necessarily the best option for you. Here, we look at some of the pros and cons of buying either a new or used car. Plus, we consider the third option – buying nearly new.
Buying new
There are three key advantages to buying a new car. First, you get to choose the exact specification you want, including the engine, colour and any optional extras. Second, you have the protection of a full manufacturer warranty should something go wrong. And third, there's no unknown history to worry about.
These aren't the only benefits of buying new, either. Newer cars will have more advanced technology, and the value of this should not be underestimated – particularly in the areas of fuel efficiency and safety.
On the downside, no matter what new car you choose, you’ll also suffer substantial depreciation just for signing the ownership documents and driving off the dealership’s forecourt. To help mitigate this, we’ve rounded up the slowest depreciating cars – the models which will hold on to their value best.
In addition, car insurance is also typically more expensive for new models, which generally have a considerably higher value compared to used vehicles. It’s also very unlikely that you’ll be able to drive away as soon as you place your order, with many new cars taking several weeks or even months to be manufactured and delivered.
Buying used
More than 7.6 million used cars exchanged hands in the UK last year. And this enormous breadth of choice is probably the single best argument for buying a used car.
Another big plus is that you avoid taking the financial hit of depreciation – around 20% of a new car's value is wiped out as soon as it leaves the showroom. Few new cars are worth more than half their purchase price after three years, while many will have lost up to two-thirds of their value. Our feature outlining the fastest-depreciating cars can help you grab a bargain.
The introduction of ever-longer factory warranties has also added to the appeal of used cars – boosting peace of mind for those buying previously owned vehicles. Five- and seven-year warranties are now commonplace, and some can be extended up to ten years if your car is serviced by a main dealer.
More than half of all used car sales are made by dealers. The best used cars are often those found within manufacturers' approved used schemes. You'll pay more for them, but the customer experience isn't that far removed from buying new.
Buying from a non-specialist but reputable dealer is likely to be more expensive than buying privately, but you can expect to get decent back-up should you experience problems.
Private purchases will give you lower prices, while buying at auction will generally be the cheapest route to buying a used vehicle, but genuine bargains are increasingly rare and buyers have little comeback with sellers.
The biggest downside of buying used is uncertainty about a car's history. 'Clocking', or tampering with the recorded mileage, is still an issue, whereas cases of vehicle registration plates being cloned and put onto stolen cars are rising.
Ideally, you'll buy a used car with a complete service history; if not, you can buy some reassurance in the form of a history check. For a nominal fee, a history checking service is able to tell you various facts about the car, such as whether it has been written off, has outstanding finance or has, at any stage, been registered as stolen.
Buying nearly new
If you buy a nearly new car, you'll generally be getting a model from a dealer's demonstration fleet, or one from their 'pre-registered' stock (cars that have been notionally bought by the dealer in order to meet sales targets).
On one level, this option looks like the best of both worlds. It gives you all the benefits of the latest models, such as modern styling and the latest features, but takes away a good chunk of that 'out of the showroom' depreciation.
The downsides are an extra name on the registration document – which will lower the car's resale value – and the restriction of choice. In terms of specification you get whatever the dealership considers best for both demonstrator appeal and easy resale. They're good judges of what the market wants, so this is not a bad thing.
Nearly new cars will have covered up to a few thousand miles. This is hardly enough to have any impact on their appeal or driveability, but will likely take that 'new car' feeling away. For some buyers, that's reason enough to avoid them. Others will appreciate the savings they represent over buying new.
It's important to confirm the build date of a pre-registered car with the dealer before you commit to its purchase. You might think you're buying a 2024 car, but it could actually be a 2023 model. This will obviously hit its value when it comes to sell it on.
What Car? says…
What Car? content editor, Jack Mortimer, says: “New cars, nearly new cars and used cars all have their own unique advantages, so it’s impossible to say that one option is always better than the other two. That said, there are still some rules that you should follow when buying any type of car.
“First and foremost, always set a budget and stick to it. Many salespeople working in new and used car dealerships alike will likely try to upsell you into a more expensive model that might not be right for you.
“It’s also worth remembering that many of the most popular cars aren’t exactly in short supply. If you’re unable to get the car of your dreams at a price that suits your wallet, walk away and wait for the next example to appear.”
