Why buy new?

1. You have the choice of any new car you want with an exact specification - including colour, trim and extras.
2. Special offers such as low-rate finance deals, free tax and accessories.
3. Manufacturer-backed warranties are usually free and will cover the car if something goes wrong for several years.
4. There’s a huge range of models to choose from, so you'll seldom have to search around before buying.
5. You can often trade-in your previous car for a quick sale (bear in mind trade prices can differ greatly from private sales).
6. The scrappage scheme will give you £2,000 towards a new car in exchange for a nine and a half-year-old car. Find out the full scrappage requirements.
7. VAT was reduced from 17.5 per cent to 15 per cent in the 2008 pre-Budget report. The 2.5 per cent saving is equivalent to £250 on a new car which costs £10,000, but you'll need to buy before 2010 to take advantage of it.
8. Peace of mind. No-one else has driven the car before so everything should be in excellent condition.
9. The car market has been hit hard by the global economic slump, so dealers are more likely than ever to offer a discount. Find out how to haggle.
10. There are further discounts to be had from pre-registered cars. These have the dealer listed as their first owner in the logbook (V5C registration document). They are still new but may affect the price you’ll get when selling, as you'll already have one previous owner.

Find the best new car deals on Auto Trader

Why shouldn’t you buy new?

1. Depreciation (the rate at which a new car's value decreases over time) is greatest in the first year of a car's life.
2. Long delivery times on certain cars.
3. Some dealer finance rates can be bettered by low-interest bank loans.
4. You could pay less for a second-hand version of the same car.

Why buy used?

1. You're more likely to get a lower price due to depreciation.
2. You may be able to drive the car home straight away without the need to fill in much paperwork.
3. Private sellers may be looking for a quick sale with a lower asking price.
4. You may have the opportunity to ask a long-term owner what the car is like to drive and what to look out for.

Search for a used car on Auto Trader

Why shouldn't you buy used?

1. When buying privately, you'll need to check the car for any problems or legal issues - or pay someone to do it for you. Read our essential viewing checklist.
2. The right car for you might not be close to home.
3. A minority of scammers may try and sell stolen or illegal cars. Visit our safety and security centre and get a vehicle check to beat them.
4. You have less legal come back than buying from a dealership, which is covered by the Sales of Goods act. This means it must be free from faults. Used cars only have to be "as described."
5. There's no free dealer warranty with the car, although you can get a used car warranty.

What about Approved Used cars?

If you're unsure whether to buy a new or used car, Approved Used might be a suitable choice.

Approved Used cars are second-hand cars sold by a dealer. They're usually vehicles which have been traded in by previous customers in exchange for a new car.

They're checked, repaired, cleaned and approved by the dealership before being sold on. Many of the advantages of buying new - such as a free warranty - also apply.

There's less choice than new and they may be marked up at a higher price than private sales, but Approved Used cars provide a solid middle ground between new and used.

Find the best new car deals on Auto Trader

More advice

Buying a car part 1: New or used?
Buying a car part 2: Where to buy?
Buying a car part 3: What car?
Buying a car part 4: Getting a great deal
Buying a car part 5: Payment, paperwork and delivery