How to pay less for new cars than second hand cars

I t sounds like a pretty enormous contradiction in terms but according to the BBC it’s possible to buy new cars for less than second hand cars, even though the latter have a good few miles on the clock. How? It hinges on financing, and how long you intend to keep the car. Generally, financing for a new car is spread out over a long period of time. It also  comes with various money saving incentives to induce you to buy. That means that if you intend to sell the car within a few years – and before you’ve paid off the full amount, the car won’t have time to depreciate to rock bottom in value. As a result you could still recoup what you paid for it in the time that you own it If, on the other hand, you bought a second hand car with one initial payment not only will the car depreciate in value much more quickly than a new car, you may have paid out more to begin with than you would have over an extended period for a new car. According to research by the AA most people intend to buy a new car within 5 years. With that in mind it makes sense to shop around for the cheapest financing deal on a new car which you will then be able to sell for a greater profit in the shorter term. And that’s how to buy new cars for cheaper than second hand cars. Thanks Beeb.