Buying a nearly-new car

The advantage of buying a nearly-new car is that you can literally save thousands of pounds, particularly on high-end models. Many people are now questioning the value of throwing money away on a brand new vehicle that's likely to plummet in value immediately after they drive off the forecourt.

Many nearly-new car dealers sell fleet or privately-cared-for cars that have been kept in very good condition, knowing the value of selling them on to buyers. According to the website Safermotoring.co.uk, it is estimated that a brand new car loses approximately 40% of its value within three years - although this is an average figure and some models can retain their value for longer than others.

But if you take a Saab 93 convertible as an example of a high-end luxury car; a 2007 demonstration model (a 1.9 150 Diesel Vector Sport Convertible automatic) sells for around £23,000, with under 5,000 miles on the clock. However, bought new this year, the equivalent Saab 93 convertible model retails for around £28,200.

The £5,000 difference is astounding, and many people question whether it’s worth the expense just to have the gleaming chrome, and that new-car smell!

Pros and cons
In deciding whether to buy new or nearly-new it’s also worth weighing up the following pros and cons, which will have an impact on the overall cost of the car.

1. The depreciation factor
If you buy a brand new car, particularly a high-end motor, as soon as you drive it away from the forecourt, it becomes a ‘used car’. This means it starts to depreciate in value immediately. But if you look at it the other way, if you buy a nearly-new car, someone else has taken most of the burden of the depreciation, which can make buying used very attractive.

2. Additional costs
Both new and used cars come with additional costs. For the owner of a new car, particularly higher-end cars, it could come with higher insurance premiums, and registration costs. However, with a nearly-new car, the premiums could be lower as the value and cost of the car have dropped. However, you may incur more costs for repairs and replacement parts that have become worn over time, so it is worth doing the maths.

3. Long-term reliability
Nearly-new cars are likely to have been put through their paces, and proven their reliability. You might think that a new car is likely to be more reliable than an older, used vehicle, but this is not always the case. Some nearly-new or older models can prove to be extremely reliable and durable, and have lower car maintenance expenses.

4. Warranties and guarantees
Although the cost of a nearly-new car will be more attractive than a brand new vehicle, and some dealers will still offer some kind of limited warranty on a used car, it may not be as comprehensive as a new car. If you buy nearly-new from a private seller, you may not get any kind of warranty at all.

It sounds like the smart money may well be on buying nearly-new rather than brand new.

Whichever model you choose, nearly-new or just off the production line, if you have at least four year no claims discount, Privilege could have a policy to suit you – get a car insurance quote online.

Get a car insurance quote from Privilege today.