Should I Buy New Or Used As First Car — Dave Recommends

Introduction

So, you’ve passed your driving test, and now you’re faced with the big question: should you buy a new or used car as your first vehicle? It’s a common dilemma for new drivers, and let’s be honest, it can be a bit overwhelming. But don’t worry, mate! I’m here to help you navigate through this decision with some solid recommendations and practical advice.

Buying your first car is an exciting milestone, but it’s also a significant financial commitment. You want to make sure you’re making the right choice, both for your wallet and your driving experience. Let’s dive into the pros and cons of new and used cars, and I’ll share my top recommendations for first-time buyers.

Dave's Recommendations with Reasons

New Cars: The Allure of the Latest Models

If you’re leaning towards a new car, there are some undeniable perks. New cars come with the latest technology, safety features, and warranties. You can customise your vehicle to your liking, and you won’t have to worry about any hidden issues that might come with a used car.

For instance, models like the Ford Fiesta or Volkswagen Polo are popular choices for new drivers. They’re compact, easy to drive, and have excellent fuel efficiency. A new Ford Fiesta starts at around £16,000, while a Polo can be yours for about £18,000.

If you are weighing up alternatives, our guide to Cheapest Cars to Insure for New Drivers covers similar ground from a different angle.

However, keep in mind that new cars depreciate quickly. As soon as you drive it off the lot, it loses value—up to 20% in the first year alone! So, if you’re planning to keep your car for a while, this might not be a deal-breaker.

Used Cars: Value for Money

On the flip side, used cars can offer fantastic value. You can get a higher-spec model for the same price as a lower-spec new car. Plus, the depreciation hit has already occurred, meaning you won’t lose as much money if you decide to sell it later.

For first-time buyers, I often recommend looking at models like the Vauxhall Corsa or Honda Jazz. These cars are known for their reliability and practicality. You can find a decent used Corsa for around £7,000, and a Honda Jazz might set you back about £8,000. Both are great choices that won’t break the bank.

For more on this topic, take a look at our How Much Should You Spend on a First Car? guide.

Insurance Considerations for New Drivers

When it comes to buying your first car, insurance is a major factor to consider. New drivers often face higher premiums, especially if they opt for a new car. Insurers see new drivers as higher risk, and this can lead to costs spiralling.

For instance, a new Ford Fiesta might cost you around £1,200 a year to insure, while a used Corsa could be as low as £800. It’s worth shopping around and getting quotes based on the specific models you’re considering.

Additionally, consider the insurance group of the car. Cars in lower insurance groups are generally cheaper to insure. For example, the Corsa is often in a lower insurance group compared to the Fiesta, making it a more economical choice for new drivers.

You might also find our First Car Insurance Tips guide useful alongside this one.

Running Costs and Hidden Expenses

Now, let’s talk about running costs. Owning a car isn’t just about the purchase price; you’ve got to factor in fuel, maintenance, road tax, and MOTs.

Fuel Efficiency

Fuel efficiency is crucial, especially for new drivers who might be on a tighter budget. Look for cars that offer good miles per gallon (MPG). For instance, the Honda Jazz can achieve around 50 MPG, making it a great choice for those who want to save on fuel costs.

Maintenance and Repairs

Used cars may require more maintenance than new ones, especially if they’re older models. It’s wise to check the service history and see if any major repairs have been done. New cars, on the other hand, usually come with warranties that cover repairs for a few years, giving you peace of mind.

We have covered related ground in our Safest First Cars Ncap guide, which is worth reading if this subject interests you.

Road Tax and MOT

Don’t forget about road tax and MOT costs. New cars are often exempt from road tax for the first year, but after that, you’ll need to pay based on emissions. Used cars will require an MOT after three years, which can add to your annual expenses. Make sure to budget for these costs when deciding between new and used.

Safety Features That Matter

Safety is paramount, especially for new drivers. New cars typically come equipped with the latest safety technology, such as automatic emergency braking, lane-keeping assist, and advanced airbag systems.

However, many used cars also have solid safety features. When shopping for a used car, look for models that have received high safety ratings from organisations like Euro NCAP. For example, the Volkswagen Polo has consistently scored well in safety tests.

You can look up the exact insurance group for any car on Thatcham's website before getting quotes.

Additionally, consider features like stability control, anti-lock brakes, and rear parking sensors. These can make a significant difference in your driving experience, especially if you’re still getting used to being behind the wheel.

Common First-Car Mistakes to Avoid

As a first-time buyer, it’s easy to make mistakes. Here are some common pitfalls to watch out for:

Skipping the Test Drive

Always test drive the car before making a decision. This is your chance to see how it feels on the road. Pay attention to visibility, comfort, and how it handles. Don’t rush this step!

Ignoring the Vehicle History

If you’re buying used, always check the vehicle history. Look for any previous accidents, outstanding finance, or if it’s been written off. Services like HPI checks can provide valuable information.

The FCA has a useful guide to car finance that explains your rights and what to watch for.

Overlooking the Total Cost

Don’t just focus on the purchase price. Consider the total cost of ownership, including insurance, fuel, maintenance, and tax. A cheaper car might end up costing you more in the long run.

Not Seeking Expert Advice

Don’t hesitate to ask for help. Whether it’s from a trusted friend, family member, or a car expert like me, getting a second opinion can save you from making a costly mistake.

How to Choose Between Options

Choosing between a new or used car can be daunting, but here’s a simple approach:

1. Set Your Budget: Determine how much you can afford, not just for the car itself but for insurance, fuel, and maintenance.
2. List Your Needs: Consider what you need from a car. Do you need something compact for city driving, or do you want a bit more space for trips?
3. Research Models: Look into different models that fit your criteria. Check reviews, safety ratings, and reliability.
4. Compare Costs: Get insurance quotes for both new and used options. Factor in running costs and potential repairs.
5. Test Drive: Once you’ve narrowed it down, take your top choices for a spin. This will help you feel confident in your decision.

Conclusion

Deciding whether to buy a new or used car as your first vehicle is a big decision, but with the right information, you can make a choice that suits your needs and budget. Remember to weigh the pros and cons of each option, consider insurance costs, running expenses, and safety features.

Whether you opt for the latest model or a reliable used car, make sure to do your research and don’t rush into a decision. And if you’re ever in doubt, feel free to reach out to me for advice. Happy car hunting, and here’s to many safe and enjoyable journeys ahead!