Buying a new model of a car was cheaper than buying its one year old equivalent with a high street loan due to low interest rates on the finance in a number of instances, a survey by consumer magazine What Car? revealed.
The magazine found that, once deposits; monthly finance or personal loan payments; vehicle excise duty; MoT tests costs and depreciation were all taken into account, the new car was cheaper than a one year old car in 29% of cases.
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One example What Car? gave was a Kia Picanto 3-Dr, which was £665 cheaper when buying new and on PCP, than buying a one year old with a loan.
Similarly, a new Picanto SR7 would have a 24 month cost of £3719, compared to a one year old model, which would cost £4,000.
In some of the cases where buying used was cheaper, the difference wasn’t always high. In the case of a Lexus NX300h Luxury, for example, buying used would save £295 over 36 months compared to a new model.
Jim Holder, What Car?’s editorial director, said: "Close analysis of the current sales market proves that if you do your research, in some instances, you could actually pay less for a brand new model rather than a used car.
"There are some great deals currently on offer, meaning consumers shouldn’t always assume a used car will automatically offer them the best value for money. Favourable interest rates combined with inviting manufacturer incentives mean it’s a great time to bag a brand new bargain."
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By GlobalDataPCP did not guarantee savings, however. In the case of a Renault Twingo Play SCE 70, buying a one year old model with a high street loan would save £1326.77 over 37 months compared to buying new with PCP.
