A car can be a significant investment for most of us. For money-conscious students, this is particularly so. If you’re a student, then you might consider a number of different models – but you might also be wondering whether it’s worth buying a car used, or looking for a new one.
Let’s take a look at some of the key variables that might inform your decision.
Affordability and Initial Costs
Of course, the most important variable for most students will be the cost. Used cars are cheaper than new ones.
But, to get a complete picture of the amount you’ll be spending on a car, you’ll want to consider not just the upfront cost of the vehicle, but all of the other costs that go with it. New cars might be more expensive to buy, but they can often be cheaper to fuel and maintain. To begin with, they don’t have to undergo an annual MOT test for three years.
A recent analysis by Auto Trader suggests that buyers are still confident in the used market, with around 74 million visits being logged in 2024. New cars, however, are set to fall to their lowest sales level in two decades.Â
The cost of inflation, and the lack of depreciation suffered by used cars, puts them at an advantage.
Insurance Considerations
However, insurance for young drivers tends to be expensive – and premiums can vary considerably according to the make and model of the car being driven. Insurance prices have recovered since the historic low of the COVID-19 pandemic – though data from Eurostat indicates that British motorists pay more for insurance, on the whole, than their counterparts in Europe.
In most cases, used cars are less expensive to insure, because the value of the car is lower. Thus, in the event of a write-off, insurers have to pay less. This lowered risk is passed on to the motorist in the form of lower premiums.
Maintenance and Repair Costs
Newer cars, as we’ve mentioned, are cheaper to repair. The components are fresh from the factory, and there are plenty of spares available. This tends to be reflected in warranties provided by the manufacturer. Used cars, by contrast, tend to require more frequent repairs – but if you’re only driving the car infrequently, the cost of keeping the car on the road might not be all that substantial.
Depreciation Value
Depreciation is something that all motorists should think about. When you’re buying new, a significant chunk of the value of your car will tend to be wiped off during the first few months and years. If you intend to resell your car quickly as you gain motoring experience, this might mean leaving a lot of cash on the table. Thus, many students prefer the used market.
Environmental Impact
Newer cars tend to be cleaner to drive. They may be more fuel efficient, or come with electric motors. However, when we consider the environmental cost of manufacturing a new car, the used market actually becomes the greener choice. If you’re concerned about the impact of your buying behaviour on the natural world, then you’ll want to consider whether you’re going to be driving enough for the cost of manufacturing to be outweighed by the savings.
