19 August 2013
4 Mins read

Buying a new car ‘is cheaper in the long run’

Running a new car can work out as cheaper than an old vehicle.

People who buy a new car as opposed to a used motor may find that doing so saves them money in the long-run.

New research from MoneySuperMarket has looked at a number of popular vehicles – including the Ford Fiesta, Vauxhall Astra, Nissan Qashqai, BMW 3 Series and Peugeot 208 – and it was shown that the cost of running a brand new motor is much cheaper compared to a used model.

The study has been carried out ahead of the release of the new 63 plate car registrations, which is a time when many people are likely to be considering an upgrade – either buying new or opting for a second-hand vehicle.

It was demonstrated that going with a brand new purchase can be more cost-effective over time. Indeed, the study found a new Ford Fiesta would cost £1,134 a year to run – £539 less than it would cost to look after a five-year-old model.

Peter Harrison, car insurance expert at MoneySuperMarket, noted buying a car is a big decision and people need to make sure they find the deal that is right for them.

He stated: "For some people the thought of buying a brand new car might seem like a push the boat out option but we know that in some cases the offers available from dealers for new vehicles are very competitive.

"There are also examples of where buying a new car is much more cost effective than choosing to purchase an older model.

The expert pointed out that while purchasing a new motor will always cost more than opting for a second-hand model, those who buy new are likely to have cash left over each month thanks to the reduced running costs.

Such expenditure includes paying for petrol, tax and MOT – and it was shown that running a new Peugeot 208 works out at £1,030 a year, which is £748 less than running a five-year-old version of the auto.

Posted by Emma Grange