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Conclusion The saving made from buying second-hand rather than new
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may not be megabucks, but it could make you more competitive. The main benefit is that you don't have to pay as much up front-between a third and a fifth of the amount, depending on age. This is a significant reduction in the financial burden, particularly if you are having to borrow.
It's true your running costs are likely to be more with a second-hand vehicle, but you are spreading the cost more evenly over the period the vehicle is in your hands, paying back a larger proportion of its whole-life cost while it's earning.
Our figures suggest that despite huge depreciation after the first year, a threeyear-old is the better buy. But remember: whatever the vehicle and its age, both the initial price and the estimated residual value have a significant bearing on the whole-life cost. Residuals fluctuate with market demand and can be unreliable. If you keep the vehicle a bit longer, assume on a zero residual and still manage to get a few thousand quid for it at the end of the day, then look on it as a bonus!
Acknowledgements These comparisons are based on the tables of truck operating costs published by our sister magazine, Motor Transport.
Leeds-based CAP Motor Research supplied the second-hand retail and trade prices; the vehicle insurance quotation came from Southampton-based One Business Insurance Services.