What are the advantages of buying nearly new cars?

13 February 2020 Blog

In the market for a car and wondering whether to buy new, used or nearly new? We hear you. With lots of different options, deciding the best route can be tricky. That’s why we’ve put together this simple guide to the benefits of buying a nearly new car.

With essential information on the advantages of nearly new cars, we can help you make an informed choice when hitting the forecourt in search of your next motor. Use the links below to navigate or read on for the complete guide.

What is a nearly new car?

Nearly new cars are normally under three years old with fewer than 25,000 miles on the clock. They often have just one previous owner, and in some cases, nearly new cars may have been used as a courtesy or demonstrator car.

There are many other advantages to buying a nearly new car too, including excellent value and the same reliability as a new vehicle. Below, we take a look a closer look at the benefits of buying a nearly new car.

What are the advantages of nearly new cars?

Reduced depreciation

Did you know that a new car loses between 50% and 60% of its value in the first three years of ownership? It’s due to depreciation – the difference between how much a car was when purchased, and how much it’s then worth when sold on or traded in.

Depreciation is one of the biggest overheads of car ownership. Many drivers overlook it because it’s not a day-to-day running cost that sees money leaving your bank account, but when you do the sums, the cost of depreciation is clear.

For example, say you buy a new car for £15,000. By the end of the second year of ownership, you can expect it to be worth around £10,000 - £12,000. 

Of course, the rate at which a car loses value isn’t set in stone. Depreciation is driven by a range of factors, from the make and model, to the total mileage, colour, trim level, and how well it’s looked after.

This brings us to nearly new cars. After a couple of months of driving, these cars will already have lost some of their value, meaning they’re both cheaper to buy and will lose less value going forward – meaning greater value retention in the long term.

Better value

Buying a nearly new car is a great way to get the make and model you want for up to half the cost of the original list price. Because cars lose so much value in the first year, even those that are just 12 months old will be significantly more affordable – so you’re essentially getting more car for your money.

Not only is the price for a nearly new car much lower than the original list price, the amount the car will lose in value will also be reduced. The rate at which a car depreciates in value slows after the first year of ownership, so you will have more of an idea of how much the car will be worth when it’s time to sell it or trade in.

 

Low mileage

Cars that are considered nearly new usually have a maximum mileage of around 25,000. Because the majority of new cars are bought on finance, the maximum annual mileage is restricted, often by 5,000-10,000 miles a year depending on the finance agreement. This is good news if you’re thinking of buying a nearly new car, as it means that most cars under three years old will have done very few miles.

Original manufacturer warranty

One of the biggest advantages of buying a nearly new car is that most makes and models will still be under manufacturer warranty, so you’re covered if anything goes wrong. This provides great peace of mind when buying your next car, with the cost of spares and repairs taken care of should something go wrong that wasn’t your fault.

Manufacturer warranties are by far the most comprehensive type of warranty available for a car purchase. If you purchased a used car that didn’t have the original warranty, you’d be left footing the bill for any repairs and upkeep, or else liable to pay for a third-party warranty which can add additional overheads on the total running cost. 

If you are buying a car with a manufacturer warranty which will run out while you still own the vehicle, it is worth seeking an extended warranty that will kick in as soon as the original finishes.

Under three years old

Age is an important factor when buying a car, up there with mileage as one of the biggest drivers of how much a car will be worth in the future. Because our nearly new cars are no older than three, you get peace of mind that they haven’t been driven to the point where wear and tear is beginning to set in, whilst also being assured of future value.

'Settled’ engine and controls

While new cars no longer require the same process of ‘breaking in’ as they used to, manufacturers still recommend that you drive gently during the first 1,000 miles. This is to ensure that moving parts have time to adapt to one another without too much stress being placed on the engine.

When you buy a nearly new car, there’s no need to worry about ‘breaking in’ the engine. With a few thousand miles on the clock, the car will feel settled and ready for daily driving, so you can make the most of its performance right away.

One previous owner

Given the age of most nearly new cars, they generally only have one previous owner. And that’s good news if you’re thinking of buying one, because the fewer owners that appear on a vehicle’s logbook, the higher the future resale value.

Not only will cars with fewer previous owners hold their value better, there’s less chance of wear and tear, damage and missed service schedules, all of which can contribute to depreciation in the long term.

At Motorpoint, we only do nearly new and all our cars are under three years old with fewer than 25,000 miles on the clock. To take a step closer to your next car, why not visit our website to browse our latest makes and models, or call our team today on 01332 972 803.