Initial cost and depreciation
One of the key advantages of buying a nearly new or used car is that it will be cheaper. Less expensive doesn’t mean you get less to choose from either, as there’s a huge number of used cars on the market; and as your money goes further, you might find yourself a higher spec model than you could otherwise afford.
You can still get a good deal on a brand-new car if you get a dealership desperate to meet its sales targets. Some dealers also offer 0% finance packages that might be worth considering.
If you decide to buy your car so new that it comes from the factory, then bear in mind this can add to the cost. You may also have to wait until your car is shipped over – which can take weeks or months depending on the model. You can avoid delays and extra expense by buying a pre-registered car; these are still brand new but have been bought by the dealership as stock. However, you may not be able to get a pre-registered car that meets your exact specifications.
Depreciation is probably one of the biggest arguments in favour of buying a used car as some brand-new cars lose as much as 60% of their value by the end of their third year. Some cars will depreciate slower than others – fuel-efficient models, for example, tend to depreciate more slowly because of their increased popularity.