How old should a used car maximum be?

Guideline: under 5 years and under 80,000 km for a reliable everyday car. Older vehicles can be cheap but carry more unplanned repair risk.

New car on credit or used car paid cash – which is better?

Used car cash almost always beats new car on credit: no interest disadvantage, no residual value surprises with leasing. Exception: 0% finance deals on new cars can work if the purchase price doesn't rise.

Is leasing worthwhile?

Leasing makes sense if: you're a business driver (tax benefits), the car always runs under warranty and you want to change regularly. Leasing is expensive if: you drive little (excess mileage costs) or can't buy at the end.

Guide

Buying New or Used – the Honest Calculation

Min. read4 min

Many people buy new because it feels safer. Many buy used to save money. Both reasons make sense. But the sober financial calculation often surprises people.

The new car's biggest enemy: year-one depreciation

A new car loses an average 15–25% of its value in the first year. A €30,000 car becomes a €22,000–25,000 car after 12 months – though it's technically almost new. Buying 2–3 years old means you don't absorb that loss.

The case for new

Full warranty (at least 2 years, many manufacturers offer more). Latest safety and driver assistance systems. No hidden prior damage. Your chosen specification. Some financing and government incentives apply only to new cars.

The case for used

Lower entry price – same driving experience. Depreciation already absorbed. Often cheaper insurance. For budget models: used purchase can allow cash payment (no loan = no interest).

What to check when buying used

Full service history present? All inspections at manufacturer or authorised dealer? Check accident history (HPI check, equivalent data provider). Mileage realistic. Test drive: at least 30 minutes including motorway. Negotiate warranty (at a dealer: 1–2 years).

Ask the advisor: new or used for my budget?

Get advice directly →

FAQ

How old should a used car maximum be?: Guideline: under 5 years and under 80,000 km for a reliable everyday car. Older vehicles can be cheap but carry more unplanned repair risk.
New car on credit or used car paid cash – which is better?: Used car cash almost always beats new car on credit: no interest disadvantage, no residual value surprises with leasing. Exception: 0% finance deals on new cars can work if the purchase price doesn't rise.
Is leasing worthwhile?: Leasing makes sense if: you're a business driver (tax benefits), the car always runs under warranty and you want to change regularly. Leasing is expensive if: you drive little (excess mileage costs) or can't buy at the end.

Dacia Sandero Skoda Octavia Toyota Yaris

← All guides

Buying New or Used – the Honest Calculation

The new car's biggest enemy: year-one depreciation

The case for new

The case for used

What to check when buying used

FAQ

Related Models