Advantages of buying a new car

Investing in a new car obviously offers the most reliability. With zero miles on the clock, it's the safest bet for performance and reliability. A new car will have had a pre-delivery inspection by the dealer, hopefully a warranty, free or discounted servicing and no MOT to pay for in its first three years. There are also the benefits of the best fuel economy, lower running costs and a decent residual value after its first few years of use.

Disadvantages of buying a new car

Purchasing a new car will inevitably be hard on the wallet. The other downside is that your shiny new vehicle could depreciate by as much as 35% in its first year alone! New cars lose the most value within the first three years, sometimes as much as half their retail price. Insurance for new cars is understandably higher than used cars - but it's still worthwhile shopping around for the best deal. A massed-produced car will also command a lower resale price compared with special edition models.

Advantages of buying a used car

Used cars may not be as glamorous as a new car but buying a well-loved and maintained vehicle is the cheapest option. With many used car offers on the internet and elsewhere, there are thousands of bargains around - most of which can be haggled down on price with a few extras thrown in. The other good news is that there are some cheap car insurance offers, and running costs can be low if the car is well looked after.

Disadvantages of buying a used car

There are always risks buying a used car, especially where its reliability, performance and origination are concerned. Unlike a new car, a used vehicle, if bought privately, will often come without a warranty, a service plan, a long MOT and extras. Good or bad, used cars always have a history. That's why it's up to the buyer to their homework thoroughly to ensure it has not been previously stolen, in a crash or sold by a bogus owner.

Other articles of interest...

• Driving safety, maintenance & security
• Driving with a family