Buying a car is a big investment – but the best value isn’t always that shiny brand-new number displayed at the front of the dealership. With the cost of living still high and the car market changing fast, savvy UK drivers know that second-hand doesn’t necessarily mean second-best. If you’re weighing your car-buying options, here’s why a used car might be the smarter choice.
Lower price and slower depreciation
It’s well-known that new cars lose value very quickly – around 40-60% in the first three years, in fact. With a used car, you skip that major drop, paying less upfront andretaining more value. If cost is a concern for you, a used model is a definite win-win.
Lower insurance costs for older models
Since insurance is based on a vehicle’s value, older cars often cost less to cover. Insurance companies also factor in that they’re less likely to be stolen and tend to be cheaper to repair or replace. With the average UK premium already now down to £777 per year, there’s never been a better time to choose a used vehicle to help you keep monthly costs manageable.
You can take advantage of pre-2025 car tax
A used car can mean lower road tax. Vehicle Excise Duty (VED) rules changed in April 2025, and now include electric vehicles. However, if you’re in the market for a used car, you’re in luck. Certain models of used cars, especially if they were registered before the VED changes, will still qualify for the lower rate. Opting for used cars registered before this shift can significantly reduce your annual car tax bill.
Market trends: Second-hand car demand growing
Used car sales rose by 6.5% in the first quarter of 2025, showing a major shift in consumer car-buying habits. With more choice, better quality, and growing acceptance, buying used is fast becoming the norm not the exception. And as the market for used cars expands, you are also able to resell them for a higher price in the future if you maintain it well.
Driving used is driving smart
Choosing a used car can save you money, reduce running costs, and offer more flexibility in a changing market. And you don’t need to compromise on quality – just do your research, keep note of market trends, and take advantage of lower tax and insurance rates to drive away with a cost-effective vehicle that will outpace any shiny new model.
