Brand New vs Nearly New
There’s no denying that buying a brand new car has its advantages. You get to choose the specification of the car; you’ll have no worries when it comes to service history; and you might even receive ‘great deals’ from the dealer.
However, did you know that a new car loses an average of 20% in value as soon as you drive off the forecourt?1 By the end of year 1 it will have depreciated by approximately 40%2.
So, how about buying a ‘nearly new’ car?
A ‘nearly new’ car is usually considered to be less than 12 months old and have no more than 5,000 miles on the clock3. These types of cars are generally what the dealer uses for demonstrations and test drives.
Buying a ‘nearly new’ car could save you a lot of money and you could still enjoy many of the benefits a new car offers4. This is because a ‘nearly new’ car is just a brand new car that has already had one previous owner – the dealer5. Meaning the car has already taken the showroom depreciation hit without you having to foot the bill.
Important legal information
Lloyds Bank plc. Registered office: 25 Gresham Street, London EC2V 7HN. Registered in England and Wales No. 2065. Lloyds Bank plc is authorised by the Prudential Regulation Authority and regulated by the Financial Conduct Authority and the Prudential Regulation Authority under registration number 119278.