New or Used Car: What Irish Buyers Should Consider Before Choosing

Are you thinking of changing your car, and still on the fence about whether to buy new or used?

While a brand-new car offers the latest technology and peace of mind, a used car can be better value and avoid the steepest depreciation.

We spoke to industry experts to explore the pros and cons of buying new vs used, and where the best value might be found overall in the Irish car market in 2026.

Should You Buy A New Or Used Car?

“Deciding between a new or used vehicle is a very common dilemma for customers,” says Harry Brady Nugent, Business Manager at Bradys Dublin, a leading car dealership in Castleknock representing the Cupra, SEAT and Mercedes-Benz brands.

“But there are a few questions a buyer can ask themselves to help come to a decision.”

1. Your Budget

Budget tends to be the main deciding factor. The price of a brand-new car may not always align with what buyers initially have in mind.

“The budget you have set for your new purchase may or may not match the price of the new vehicle you have your eyes set on,” Harry explains.

If the numbers don’t stretch to a new model, a used alternative may offer better value overall while still meeting most of your expectations.

2. Your Needs and Wants

Practical requirements such as the number of seats, boot space and certain options or features may lead you to cast the net wider than just new cars.

“Sometimes what a customer needs or wants may not match their budget,” Harry says, “which is when a used car might be the perfect solution as it may tick all the boxes at a more suitable price.”

However, buyers seeking something very specific or niche may find fewer options on the used market.

“You must decide if you are happy enough to pay the extra premium to buy new and have the car exactly as you wish,” Harry adds. “Some buyers may instead reduce their requirements to broaden the options available to them.”

Pros And Cons Of Buying A New Vs Used Car

Beyond personal preference and budget, there are clear financial differences between buying a new or used car.

According to Conor Faughnan, motoring expert at leading car sales website Carzone, both options come with distinct advantages and trade-offs.

“New cars are a high initial investment, but you get the best technology, the lowest maintenance and generally the lowest running costs - once you exclude finance,” he says.

“Depreciation is a big hit though, and the new car buyer is affected the most. Second-hand cars make more financial sense because they avoid that first depreciation hit.”

That said, older cars can come with more maintenance costs over time. Cars over 10 years old require an annual NCT and the likelihood of mechanical problems also increases, especially for petrol and diesel cars.

“From a purely financial point of view, you might ideally buy a two- to three-year-old car with cash,” Conor says. “You get the best of both worlds with no finance cost. But that assumes that you have the cash available and it also limits your choice.”

New Cars: Pros and Cons

Pros

• Latest technology and safety features
• Manufacturer warranty
• Lower likelihood of costly repairs and maintenance
• Greater efficiency in most cases
• Can customise the car to your needs and wants

Cons

• Higher purchase price
• Significant depreciation in the first few years
• Higher insurance premiums due to cost of replacement or repairs

Used Cars: Pros and Cons

Pros

• Lower upfront purchase cost
• Slower depreciation compared to new cars
• Usually lower insurance premiums
• Potential to buy a higher-spec model for the same budget

Cons

• May lack the latest technology and safety features
• Higher risk of maintenance and repair costs
• Limited or no warranty cover

Ownership Costs

Aside from the purchase price, there are other costs to consider over the time you will the vehicle. These include maintenance, servicing, repairs, NCT, motor tax, fuel and insurance.

Newer cars are often more efficient and may qualify for lower motor tax, particularly hybrid and electric cars.

Used cars may have higher servicing and maintenance costs. However, the lower purchase price can offset these expenses over time.

Insurance Considerations

Insurance premiums are influenced by factors such as the car’s value, safety features and repair costs.

New cars generally cost more to insure because they are more expensive to repair or replace. Advanced technology like sensors and cameras can also increase costs, even after minor accidents.

Used cars typically cost less to insure because of their lower market value. However, the age of the vehicle, condition and safety ratings still impact the premium you pay.

Finance And Warranty

While new cars often carry a higher upfront cost, Harry Brady Nugent of Bradys Dublin says buyers should consider the additional value that comes with buying new, like access to more competitive finance offers.

“New vehicles often have cheaper finance rates than used cars, with car brands even offering 0% finance rates in some cases,” he says. “Finance rates have been easing over the past year following ECB rate cuts, which benefits both new and used car rates.”

Warranty cover on new cars is another major factor.

“New cars from a dealership will also come with a warranty, which gives customers peace of mind should any unforeseen issues arise,” Harry adds. “Free service plans, roadside assistance cover and trade-in boosters are also common perks of buying new cars, which can keep money in a customer’s pocket in the longer-term.”

Nearly New Cars: The Perfect Middle Ground?

‘Nearly new’ is the term the motor industry uses for cars that are two to three years old that are often sold through main dealers. Many are demonstrator cars with little mileage, fleet returns or cars that were previously leased. Nearly new cars benefit from the same modern safety features as if they were brand new but can be bought at a significantly lower price.

Harry points to demonstrator and nearly new models as a good middle ground for car buyers seeking value in the car market.

“Demonstrator models and nearly new cars can be a great source of value,” says Harry. “Customers can often get the current year registration plate while not paying the full price of a new car. These cars often have low mileage and still benefit from warranty cover and other perks depending on the manufacturer.”

2026 Market Outlook

The current market for cars in Ireland may also influence your decision when it’s time to buy.

“2026 is actually a good year for buyers,” says Conor Faughnan. “With the 261-registration period in full swing, manufacturers are aggressively subsidising interest rates to move stock, making new cars, specifically EVs and hybrids, surprisingly competitive against used alternatives.”

Low finance rates and even 0% APR options are currently available on selected new models, particularly electric vehicles.

“Two- to three-year-old EVs are also in something of a sweet spot right now,” he adds. “Because new EV prices have dropped, these used models are now priced very competitively. You can often find a high-spec 2023 EV for nearly half its original sticker price, though you will likely pay a higher interest rate on the finance unless you have cash.”

With more electric models available and price adjustments across the market, there’s more choice than ever if you’re in the market to change your car.

Conclusion

To wrap up, the decision between buying a new or used car will come down to your budget and priorities.

A new car offers peace of mind, the latest technology and warranty protection, but at a higher upfront cost and steeper depreciation.

On the other side, a used car can be bought at a lower purchase price, will depreciate more slowly, but there is the risk of higher maintenance and running costs.

Based on what industry sources told us, a two- to three-year-old car may offer you the best balance of value, reliability and affordability.

Once you’ve chosen the right car for your needs, making sure it’s properly insured is the next step. Chill takes the hassle out of searching for car insurance by comparing quotes from 14 leading insurers. You can rest assured knowing you’ve got the best deal. Visit our car insurance page to get a competitive quote in minutes.