According to the SMMT (Societ of Motor Manufacturers and Traders), new car registrations have steadily declined since 2019.
With only 802,079 new car registrations this year, that’s an 11.9% decline. In comparison, the number of used car sales has increased by 5.1% to 1,774,351 sales in the first quarter of 2022.
Why have new car sales decreased in recent years?
The main factor that has affected the new car market is the 2019 pandemic. With global lockdowns, people were using their cars less and less likely to be shopping for a new one.
There is also the fact that car manufacturing is a collaborative process, parts will be imported and exported all over the world, and lockdowns made that grind to a halt.
So it’s no surprise that this would affect car buying habits. While used car dealerships also felt the effects of lockdowns, car buyers could still browse stock online and even arrange to have the car delivered.
New cars: pros and cons
You are the first one to drive it
Everyone loves that new car feeling. Knowing that you’ll be the first person to drive the car can be exciting.
Get to customise it to your taste
All makes and models have several choices of trims and colours available. So you can customise your new car to suit your taste and driving style.
Warranty protection
Cars are expensive, so you’ll want to ensure that your vehicle is covered. New car dealerships will often provide a standard warranty to help protect your purchase and give you that extra peace of mind.
Depreciation
A drawback of new cars is that they often depreciate very quickly after purchase. Depending on the make and model, a new car can depreciate by up to 40% within the first year of ownership.
Used cars: pros and cons
You don’t have to worry about depreciation
As a used car will have already depreciated after the initial purchase, the depreciation rate will be significantly less. So you won’t lose out should you decide that you want to sell it in the future.
Get initial warranty cover
While used car dealerships are unlikely to provide full warranty cover, they can provide coverage for a short term with the option to extend it. It almost works like a trial run. Then you can buy the full product.
More affordable than a new car
There is a difference between new and used cars. In some cases, you may be able to afford a high-spec used car with a budget that would get you the mid-range version. And with used cars being at least three years old, they will still be up to date regarding tech and safety features.
Don’t always know the car’s history
This can put some car buyers off purchasing a used car. Depending on where you purchase it from, you might not be able to find out its history. Used car dealerships will often run HPI checks on their cars to determine whether the vehicle has been stolen or tampered with in the past.
It can be risky if you buy privately
Private buying doesn’t have the same rules and regulations as if you bought from an established dealership.
You’ll have to work with the seller to ensure that the paperwork has been completed correctly and that the car is now registered in your name so you can insure it. When viewing the car, you’ll want to take it for a test drive to ensure it runs well.
If you are interested in buying privately, you can run an HPI check on the car yourself before buying.
Why buy a used car from Rix Motors?
At Rix Motors, we specialise in used car sales in Warrington. Whether you’re looking for a Porsche, Mercedes-Benz or BMW, we are sure you’ll find your next car in our showroom.
If you’ve been considering financing your next car, we will be happy to help you. As a credit broker, we will talk to lenders and bring you the most suitable finance quote for your budget.
Take a look through our stock online today, and don’t hesitate to get in touch if you’d like more information.