Is it better to buy a used 2 year old car or buy a new car within a 3 year car finance agreement to buy/release at the end?

Is it better to buy a used 2 year old car which has lost it's depreciation, or buy a new car within a 3 year car finance agreement to either buy at the end or release. Also should I now wait until after the new reg is out to see what 2/3 year old cars are returned to dealerships?

Asked on 20 January 2017 by Lucy

Answered by Honest John
Discounts on new cars can be so high (20% is common) that buying 'nearly new' or even 2-3 years old doesn't necessarily make better sense. With a new car everything is 'new', such as tyres, brakes, etc., and doesn't need replacing, which adds to the running costs of a 2-3 year old car. March will be a rush to buy new 17 reg cars. April won't because of the new tax regime.
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