Want a 64 plate but worry about the cost? Perhaps you shouldn’t

As the new 64 registration plate finds its way onto British roads this September, many drivers will want to cash in. The big question is do you buy new or pre-owned? For those looking to save money, the answer might be surprising.

Of course, we know that older, pre-owned cars have a greater chance of developing problems, deteriorating in quality and costing more in terms of servicing, MOT and even fuel consumption as the engine efficiency deteriorates. Peace of mind is also lost the minute that a car reaches the end of its warranty period.

Then again, pre-owned cars are by their very nature, cheaper; they don’t suffer the same plummeting depreciation in value; and some can even hold their value remarkably well over time. So should you go new or used for your next purchase?

A new study by MoneySupermarket shows that, while you will no doubt save short term, the long term benefits point to buying brand new. Findings suggest that new cars have cheaper running costs and may even be cheaper to insurance, helping the motorist save up to 25% in the first year alone.
A selection of popular cars were chosen for the study. These included the Nissan Qashqai, Ford Fiesta, Vauxhall Astra, BMW3 Series and the Volkswagen Golf. The results shows a new car will yield significant savings on all kinds of running costs (from road tax and petrol to your MOT and insurance) when compared to an identical model which is five years older.

Dan Plant, a representative of MoneySupermarket stressed the advantages of buying brand new, and said:
‘For some, purchasing a brand-new car might seem prohibitively costly, but don’t rule out buying new just because of the higher purchase price.

‘It is important to look at the overall cost of running the vehicle, as well as the upfront price.’

Top of the pile in terms of savings on running costs was the Golf, which could save the owner an estimated £422 per year. This is compared to estimates on the equivalent model from five years ago, which costs as much as £1,689 to run.

While the newer Golf is particularly cheap to run, big savings can be made across the board as car manufacturers work ever harder to improve fuel efficiency, extend warranties, improve reliability and lower running costs.

In the interest of balance, however, it is widely known that once a car is bought it depreciates in value instantly. Research undertaken by the AA says the value of a vehicle will decrease by around 35% as soon as it is removed from the showroom.

Has your new car been involved in an accident recently? We can help you gain full retail value of a new car in the event of a non-fault accident. Call Winns today on 0800 988 6288.