We are looking to replace our old car for a newer model. We have never bought brand new in the past however as it has been a long time since what is the recommendations at the moment considering the current market, credit crunch etc:

Buy new? Buy nearly new? any advise, ideas and/or suggestions would be welcome.

Opt for "nearly new"

Why?

New cars will depreciate a minimum of 17.5% as soon as you drive out the showroom.

A nearly new car (say one year old) will stilll have the benifits of a new car, eg, no MOT for another 2 years and still under manufacturers warranty for a minimum of two years.

Recently I bought a new car and I had to pay a tax of £50 over and above the £400 road tax. This was a one off tax for the new car so I would think this would not be required with a nearly new one!

At the end of the day it will be new to you. If you will be financing the car then you will have a shorter term to pay the balance. Or, you could still spend the same amount of money that you would have done on the new car and buy a better model?

Or, keep the money you saved and go on a wee holiday.

Sound advice - having bought new cars I would now NEVER consider doing so again. So much value lost in that 1st year plus all the teething problems of any new machinery. Let some mug pay the extra £K's for the right to pose with the lastest plate (for a mere 6 months - how sad to value yourself that way eh? Who else cares? ) and sort out the bits falling off etc.... then you go get the car for loads less money and have it during the most reliable part of it's life. Win win! Remember not to snigger or look smug when someone brags to you about their new car though! :)

I don't believe that 'new' or 'nearly new' makes a difference, as a rule. It's all relative and depends entirely on how good a deal the 'new' car is. Bear with me...

The 'nearly new' car lets say, costs £7000, it's 6 months old and a couple of thousand miles. You pay cash, drive the car away, round the block and decide on the same day (ok, this is just hypothetical) to trade the car back in. You visit the garage and they give you the trade-in value. --- £7000? No, probably more like £5000. That's a loss of somewhere in between 28 and 29%.

Now, let's say the same dealership have a 'new' variant of this car for £7500. How does that make such terrible sense in comparison?

I'm not campaigning for people to buy a new car, merely suggesting that unless you buy a classic or a "couple of hundred quidder" then it's going to lose lots of money. The thought that new cars lose a 'percentage' is wrong, it's the difference between what you paid and it's trade in value - This doesn't always mean you will be better off with 'nearly new'. You can only compare the facts of what is available New and Nearly new - and what they are costing at the time.

Telling yourself New or Nearly new makes a big difference when it comes to losing money is naive.

JJ