1st September 2015
Buying a new car could be more cost effective than a used one, with cheaper running and insurance costs saving motorists up to 22% in the first year, new analysis reveals.
As the new ‘65’ number plate is released today, motorists looking to buy a car may be considering whether to upgrade to a new model or opt for a second-hand vehicle.
A new study by MoneySuperMarket has found that, thanks to the attractive finance deals often available with new cars, often there is not too much difference between the upfront costs of buying old and new.
MoneySuperMarket analysed costs for five popular vehicles – Nissan Qashqai, Volkswagen Golf, BMW 3 Series, Ford Fiesta and Vauxhall Astra – and found that in all five cases a brand new car has cheaper running costs (including petrol, road tax, insurance and MOT) compared to a five year old model of the same vehicle.
The biggest saving of the five cars analysed was the Volkswagen Golf, where a £461 annual saving could be made on the running costs of a new car compared to the used version, bringing the cost down to £1,591; a 22% difference.
For a brand new Ford Fiesta (1.25L, petrol) the annual running costs are £1,554 per year, which is £320 cheaper than the costs associated with a five year old version, and it is the cheapest new car to run out of the five analysed.
Similarly, a new Nissan Qashqai will cost £1,895 to run per year compared to £2,178 for a five year old model, a difference of £283.
In four out of five cases the cost of insuring the newer car was lower than the older equivalent models.
Kevin Pratt, insurance expert at MoneySuperMarket, said: “Buying a brand new car can seem out of reach for lots of us, but with manufacturers building ever more fuel efficient and safer models, the cost of running and insuring a new car is often far cheaper than older versions of the same vehicle – and the brand new car should be far more reliable.
“Of course, a new vehicle will always have a higher windscreen price than a second hand one, but the savings you can make on running costs, alongside potential deals offered on new cars by keen salespeople, could reduce the difference. Plus you’ll usually get a lengthy warranty with a new car, removing the threat of hefty maintenance bills for several years.
“The cost of car insurance varies hugely depending on the vehicle you buy, so before taking the plunge on your dream ride it’s well worth doing a comparison to see what fits in with your budget.”