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When it comes to buying a car, the age-old argument remains.  Should you buy new or used? Each side has its advantages and there are compelling arguments for both.  The common determining factor for many is depreciation.

What is Depreciation?

Car depreciation is simply the value of the vehicle that has been lost over time. From the moment a car is registered and drives off the forecourt it begins to lose value.  It will continue to decline throughout its lifetime.  If you’re lucky it may eventually be deemed as a ‘classic’ car and becomes valuable again.  This will, of course, depend on the car.  Depreciation is closely linked to the age and mileage of each vehicle.

Why Depreciation Sucks

So why does depreciation put so many off buying a new car?  The biggest depreciation hit on a car doesn’t happen when it’s old and worn out, it happens the moment it leaves the forecourt. That’s around 30% of the value of your car lost from the moment you drive it off the dealer’s forecourt.  A further 60% will be lost in the first three years.   This means that if you chose to sell the car tomorrow you wouldn’t be able to get anywhere near the price you initially paid. The thought of throwing away thousands of pounds isn’t a viable option for many people which is why buying a new car isn’t always an option.

The Solution?

People will always buy new cars, whether for the status or the simple fact that they like to be the first owner.  This works well for those of us unwilling to throw away 30% of the value of the car in depreciation because it means that there will always be a market for almost new second-hand vehicles. By buying a second-hand, nearly new vehicle you could get a 6-month-old used Land Rover for example with under 1000 miles for far less than you would have paid for it had it been new.  This allows you to enjoy all the perks of a new vehicle without taking the depreciation hit.  All over the country thousands take advantage of the nearly-new car market to buy themselves the vehicle of their dreams at a fraction of the price that they would have paid to drive the car away as new.

What to Look Out For

Of course, as with anything, buying a second-hand car does come with a few risks.  The older the car is and the more mileage it has done and the more chance that it may have underlying issues. This is rarely a problem for the nearly-new second-hand car market, but do be careful with older used cars and try to always secure a form of warranty from the dealership.

Have you bought a used car before or would you buy one?

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