Buying a car16 June 2026
Depreciation and value
New cars typically lose value fastest in the first few years. A nearly new or used car has usually taken much of that early depreciation already, which can mean more car for your money. That said, a new car starts with a full warranty and no prior wear.
Cost and monthly payments
A used car usually costs less to buy, which can mean a lower amount borrowed and lower monthly payments for the same term. A new car costs more but may come with incentives or longer warranties. Always compare the total amount repayable, not just the monthly figure.
Reliability and running costs
New cars tend to need less maintenance early on and come with a manufacturer warranty. A used car can still be very reliable, especially with a full service history, but it is sensible to budget for maintenance and to check the car's history before you commit.
How finance fits in
Both new and used cars can be financed through options such as HP or PCP. Which finance type suits you depends on whether you want to own the car outright and how long you plan to keep it, rather than on whether the car is new or used.