Used or New: That is the Question?

When you have finally made the decision that the old banger outside has breathed its last and has to go, you will then be faced with the decision of whether to buy a new or second hand car . There are pros and cons to both, so let's have a closer look.

First up is the cost. Yes, a new car is usually going to be more expensive, but not necessarily so, as it depends on the make. Some brands, such as minis, hold their value extremely well, and many second hand Minis will not have lost much value on their original price.

Other makes depreciate much more quickly, and for no visible reason. It all depends also on the quality and age of the car. You need to shop around, but generally speaking, you have the choice between a second hand, but well featured car at roughly the same price as a cheaper specification new car.

Other issues to consider are petrol consumption – some older models are less fuel efficient - and warranty. Extended warranty is often offered on new models as part of the deal, whereas, even from a car dealer, you will have limited warranty on a second hand car, and none at all from a private seller.

Also bear in mind that a dealership is also likely to be more generous on part- exchanging that old banger against a new rather than a used car