New or used: which to choose for your next car?
A recent used car (two to four years old) often gives the best value for money, because most of the depreciation has already happened. Buying new makes most sense for the manufacturer warranty, the latest safety technology and financing offers. Here are the key points to decide, with figures.
New or used: the differences that matter
| Criterion | New | Used |
|---|---|---|
| Depreciation | Steepest in the first years: about a fifth of the price goes in year one (estimate). | Partly absorbed already: a 3-year-old car loses value more slowly. |
| Purchase price | The highest, though discounts and financing offers exist. | Much lower for an equivalent model. |
| Warranty | Full manufacturer warranty. | Varies: legal warranty, dealer warranty or remaining manufacturer cover. |
| Choice and availability | Delivered to order, sometimes with delays. | Available immediately, but you search car by car. |
| Technology and safety | Latest driver aids and latest standards. | Equipment from an earlier generation, depending on age. |
| Financing | Lease, long-term rental or loan, often with brand offers. | Mostly a loan; leasing is rarer. |
How much value does a car lose?
Share of the new price kept by age and segment, from Compar'Car's depreciation model (petrol). These are orders of magnitude, not market valuations.
| Segment | 1 year | 3 years | 5 years | 8 years |
|---|---|---|---|---|
| City car | 82 % | 68 % | 55 % | 42 % |
| Compact car | 82 % | 67 % | 54 % | 41 % |
| SUV | 83 % | 69 % | 57 % | 43 % |
| Estate | 82 % | 66 % | 53 % | 40 % |
| Saloon | 81 % | 64 % | 50 % | 38 % |
Examples: new and 3-year-old used
For a few common models in the catalogue: the entry new price and the estimated range for a 3-year-old used car.
| Model | New from | Used 2023 (estimated) |
|---|---|---|
| Renault Clio | €19,500 | €12,100 – €16,700 |
| Peugeot 208 | €20,500 | €12,700 – €20,400 |
| Dacia Sandero | €12,500 | €7,800 – €9,700 |
| Volkswagen Golf | €36,300 | €22,300 – €26,200 |
| Toyota Yaris | €18,500 | €11,500 – €20,500 |
| Tesla Model 3 | €39,990 | €21,500 – €25,200 |
| Peugeot 3008 | €38,000 | €20,000 – €29,600 |
| Renault Captur | €22,500 | €14,300 – €22,300 |
When new is the right choice
- You want the full manufacturer warranty and the peace of mind that comes with it.
- You care about the latest driver aids and safety equipment.
- A brand financing offer (lease, long-term rental) makes the monthly payment competitive.
- You keep the car for a long time: the first years' depreciation matters less.
When used is the right choice
- You want the best value for money: a 2 to 4-year-old car has already absorbed most of its depreciation.
- Your purchase budget is capped, and you cannot or do not want to borrow.
- You drive few kilometres: paying for new for little use rarely pays off.
- For a used electric car, ask for a battery health certificate before buying.
Frequently asked questions
Is it better to buy new or used?
A recent used car, two to four years old, often gives the best value for money. Buying new makes sense for the manufacturer warranty, technology and financing offers.
How much value does a car lose in its first year?
According to Compar'Car's depreciation model, about 18% of the new price in the first year, then roughly 6 to 8 points a year after that. These are orders of magnitude.
Is a used electric car risky?
The key point is battery condition: ask for a battery health certificate and check the real range. Electric cars often depreciate faster than petrol or diesel ones, which can make used attractive.
Lease or loan to finance my car?
A lease gives a lower monthly payment with a final purchase option; a regular loan makes you the owner once repaid. See our dedicated article for the detail.
Compare new and used in the same ranking
Compar'Car mixes new and used, any powertrain, and ranks vehicles by your budget and use. It's free.