With the release of the new ‘64’ plate car registrations next week, you might be considering upgrading your motor to something brand new. But before some contrarian can say, ‘…new cars lose X% of their value as soon as they roll off the forecourt…’consider this; new cars can be up to 25% cheaper to run than used cars. And that’s according to our own trusted research here at MoneySuperMarket.
Give me five
Looking at the following five popular makes of car below, we found that the cost (which includes things like fuel, road tax, insurance and MOT) of running the new version was less than that of running a five-year old model.
• Nissan Qashqai
• Volkswagen Golf
• BMW 3 Series
• Ford Fiesta
• Vauxhall Astra
The biggest saving was on the VW. Compared to the cost of running a five-year-old Golf, the new model would save you £422 (or 25%) over a year. For a brand new, 1.25L, petrol Ford Fiesta, the UK’s most popular motor, running costs are £351 cheaper than they would be on a five-year-old version. Similarly, a new Nissan Qashqai will land you with annual running costs of £1,804 – whereas a half-decade-old Qashqai would cost you an extra £243. And in all five cases, the new model was cheaper to insure than its predecessor, despite having a higher value.
Before you take the plunge
Dan Plant, consumer finance expert at MoneySuperMarket, said: “For some, buying a brand new car might seem prohibitively costly. However, with the drive from manufacturers to create more fuel efficient and safer models, as well as some ‘free road tax for the first year’ schemes, the cost of running and insuring a new car is often far cheaper than older versions of the same vehicle. “Of course, a new vehicle will always have a higher headline price than a second hand one in the same model, but the savings you can make on running costs alongside potential deals offered on new cars by keen salespeople could outweigh that. Plus you’ll usually get a decent warranty, and that lovely new car smell! “The cost of car insurance varies hugely depending on the vehicle you buy, so before taking the plunge on your dream ride it’s well worth doing a comparison to see what you can afford.” Depending on how this research sways your opinion, you might want to read my article on How to pay for your new car.
If money was not a factor, what brand new car would you fancy? Tell us in the comments.