Lower fuel bills, free road tax and cheaper insurance costs will all save motorists in the first year, while the new car warranty could also save owners money on repairs.
Moneysupermarket looked at five cars – the Ford Fiesta, Vauxhall Astra, Volkswagen Golf, Nissan Qashqai and BMW 3 Series. The firm surprisingly found that for all five cars, the cost of insuring the new car was less than insuring the used equivalent.
Fuel, road tax, and MOT costs were also much lower for the new car – helped by the fact any car emitting 130g/km CO2 or less gets free road tax for the first year, and cars are not equipped to have an MOT test for the first three years of their life.
Most new cars also offer free breakdown cover and are not required to have a service for at least the first year.
The extent of the savings were surprising: by choosing a brand new Volkswagen Golf instead of a used one, for example, owners could save £422 in just one year. Ford Fiesta owners could save £351 and Nissan Qashqai owners could save £245.
Dan Plant, consumer finance expert at Moneysupermarket, said: “For some, buying a brand new car might seem prohibitively costly.” But look further than the headline price and “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.”