New or used cars: the pros and cons

Buying a car is a big decision, and there are lots of options to pick from. In this guide to new and used cars, we’ll explain the pros and cons of both buying a car second hand and buying new, as well as what it means to buy “nearly new”. Is it better to buy a new or used car? Read on to learn which option suits you and your budget.

By Gumtree Editorial Team

7 October 2021 7 min read

New cars

Buying a brand-new car means you get it fresh from the factory. This can be great – you get to pick everything from the colour to the tyre specs, but new cars are almost always quite a bit more expensive than used or nearly new models. To buy a new car, head to a dealership or check out their website.

Pros of new cars

You get the latest tech. New cars usually contain the most up-to-date kit for everything from stereos to state-of-the-art safety equipment.
Better efficiency. More modern cars tend to do more miles to the gallon, saving you cash at the petrol station and helping to keep carbon emissions down.
Customisation and personalisation. With a new car, you get to pick your own features, including the trim level, transmission (manual vs automatic) and kit like infotainment systems and tinted windows.
New cars come under warranty. The exact package depends on the manufacturer, but most offer at least three years. So if there’s an issue with your car, the manufacturer will repair or replace it for you. This might not be the case if you buy used.
It’ll be in mint condition. Buying a new car means you know that it’s come straight from the manufacturer to you – no hidden damage, no scuffs or scrapes, and no stains on the backseats from someone else’s kids.

Cons of new cars

Depreciation. As soon as you drive your new car for the first time, it starts to lose value. This means that if you go to sell it on, it’ll be worth a lot less than you paid for it. New cars tend to lose 35-50% of their value in the first three weeks.
You’ll pay full list price (or close to it). A brand-new car will be more expensive than a similar used model.
The road tax payments may be higher. Cars built after 2017 tend to have slightly higher road tax premiums.

Used cars

Second-hand cars can be a great deal. It’s usually a more affordable way to buy a car, and there’s plenty of choice on offer. However, there are some extra risks. You can buy second hand from a dealership or a private seller.

Pros of used cars

You’ll get a better deal up front. Second-hand cars tend to be much cheaper than brand-new models due to depreciation. Older, more heavily used cars are usually cheaper, but even if you’re after a car with very little wear and tear, your budget will usually go a lot further for a used car.
Many second-hand dealerships do still offer a warranty. If anything goes wrong, they’ll get it sorted out.
The process can be quicker. If you buy a used car, it’s usually good to take home as soon as all the paperwork is done – no waiting around for it to be built to order.
Used cars are tried and tested. Any recalls or issues with the car will likely have been found by new owners in the first few years on the road.

Cons of used cars

You might not get covered under warranty. If you buy through a private seller, you won’t get any kind of warranty protection. So if something does go wrong with the car, you’ll have to pay to get it fixed yourself.
You don’t know the car’s history. Dodgy sellers might try to convince you to pay over the odds for a car or hide damage from you. Checking it over and taking it for a test drive are good ways to minimise these risks.

“Nearly new” cars

Nearly new cars may have previously been leased, or used for demonstrations or test drives. Pre-registered cars are similar – sometimes dealerships buy them to meet sales targets and register themselves as the owner. They may be up to three years old but most are no older than one year.

Pros of nearly new and pre-registered cars

Low mileage. Pre-registered cars usually have zero or low mileage, and nearly new cars can often have very low mileage compared to most used cars.
Get a good deal. These options will be cheaper than buying a new car while avoiding some possible cons of buying used.
There’s often room to haggle, as dealers set the prices.
There’s no need to worry about damage or wear. These models should come with little or no wear and tear.

Cons of nearly new and pre-registered cars

You won’t get a new-car experience. Nearly new cars that have been leased or used for demonstrations will likely have covered a few thousand miles, so you won’t quite get that new-car feel.
Extra depreciation. Resale values might be slightly lower than if you’d bought the car new, as it will have an extra previous owner (the dealership).
You won’t get to pick the specifications or features. Dealerships usually pick the more popular specs and trims.

View all Expert Advice