Your Ultimate Guide to Buying a Nearly New Car in the UK

Thinking about getting a new set of wheels but feeling a bit overwhelmed by all the options? You’re not alone. Buying a car is a big decision, and it’s easy to get lost between the dazzling allure of a brand-new car and the cost-saving promise of buying a used car. 

But what if there was a perfect middle ground? A sweet spot that offers the best of both worlds? Enter the nearly new car!

In the UK, the nearly new market has exploded in popularity, and for very good reason. So, let’s delve into what a nearly new car is, why you should consider one, and all the handy tips you need to know before you buy a nearly new car. 

What Exactly is a ‘Nearly New’ Car?

When you hear “nearly new,” it’s easy to think of a car that’s a few months old with a couple of thousand miles on the clock. And you’d be right! But the term is a little more specific than just a general ‘used’ car. 

A nearly new car is typically a vehicle that is under a year old and has very low mileage – often less than 5,000 miles. They’re still technically ‘used’ because they have been registered with the DVLA, but they haven’t had a private owner. Instead, they’ve often been registered by the dealership itself for a specific purpose. 

The most common types of nearly new cars you’ll find on the market are: 

• Pre-registered cars (Pre-reg): This is one of the most common types. The dealership has registered the car in its name to meet a sales target set by the manufacturer. It might have only a handful of miles on the clock from being moved around the forecourt. You’ll be the first private owner, but the second registered keeper on the logbook. 

• Ex-demonstrator cars (Ex-demo): Ex-demo cars are the vehicles you take for a test drive at the dealership. They’ve been used to showcase the car’s features to prospective buyers. As a result, they’ll have a bit more mileage on them than a pre-reg car, but they will have been meticulously maintained by the dealership’s own technicians. 

• Courtesy cars or management cars: These are cars that have been used by dealership staff or lent out to customers while their own car is being serviced. They will also have low mileage and a full-service history. 

The Big Benefits: Why Nearly New Makes Sense?

So, why are so many people choosing this option? The advantages are compelling, and they can make a huge difference to your wallet and your peace of mind. 

Lower Depreciation Rate.

This is the big one. A brand-new car loses a significant chunk of its value (depreciation) the moment you drive it off the forecourt—sometimes up to 20%! With a nearly new car, that initial, sharp drop in value has already happened. Someone else has taken the financial hit, and you get the benefit of a much flatter depreciation curve in the future. 

Significant Cost Savings.

When buying a nearly-new car, you’re essentially getting a brand-new car for a used-car price. The savings can be substantial, often amounting to thousands of pounds, allowing you to purchase a higher-spec model than you could afford if you were buying new.

Immediate Availability.

One of the major frustrations of buying a new car is the waiting list, which can stretch for months, especially for a factory order. With a nearly new car, it’s already there on the forecourt, and you can usually drive it away within days.

Protected by Warranty.

A nearly new car will almost always have a large portion of its manufacturer’s warranty remaining. This gives you the peace of mind that comes with a new car, protecting you against unexpected repair costs.

Excellent Condition.

Buying a nearly-new car means they are practically pristine. They’ve been well looked after by the dealership and will have no wear and tear to speak of. They still have that “new car” smell and feel, without the hefty price tag. 

What to consider before buying a nearly-new car?

It’s only fair to look at both sides of the coin. While the benefits are great, there are a few things to keep in mind. 

Limited Choice.

When you buy a nearly-new car, you can’t specify the exact colour, interior trim, or optional extras you might want. You’re buying what the dealership has chosen, so you might have to be a little flexible.

You’ll Not Be the First Owner.

This is a minor point, but it’s important to remember. Even if the car has only 10 miles on the clock, you will be the second owner on the logbook. While this isn’t a huge deal for a nearly new car, some buyers prefer to be the very first registered keeper.

A shorter MOT and Warranty Period.

The car’s warranty and its first MOT date (due after three years) start from the initial registration date. So, if a car was registered six months ago, you will have six months less warranty and will need to get the MOT done six months earlier than if you had bought it brand new.

If you’ve made up your mind and decided a nearly new car is right for you, great! You’ve made a good choice. If you’re ready to start shopping, you should always use a reputable dealership. When you apply for finance with us, we only use the most trusted, 5-star UK dealerships, verified by the FCA. This helps us to protect us and you, and ensure you’re getting a reliable and reputable car. Buying a nearly-new car can be hard to obtain from a private seller, as many of them are used as courtesy cars or ex demo cars at dealership. It can also be riskier to use a private seller, especially if you’re buying your first car. Stick to reputable, verified dealers who have a large range of stock an you should be able to find your perfect nearly-new car.

Handy Tips for Buying a Nearly New Car.

Ready to start your search? Here are a few essential tips to make sure you get a great deal when buying a nearly-new car. 

Do Your Homework: Research the specific make and model you’re interested in. Look at online reviews, owner forums, and check common problems or recalls. 

Check The Paperwork: Always ask to see the V5C logbook to confirm the dealership is the first registered keeper. Check the service history to ensure the car has been properly maintained, even in its short life. 

Do a Thorough Inspection: Look closely for any signs of damage, no matter how small. Check the bodywork, alloys, and the interior. A reputable dealership will have prepared the car to a high standard, but it’s always wise to be meticulous. 

Go for a Test Drive: A test drive is a must when buying a nearly-new car. Don’t just drive it around the block; take it on a variety of roads, including some with bumps and hills, and get a feel for how it handles. Listen for any strange noises and check that all the tech and features work as they should. 

Don’t be afraid to haggle: Nearly new cars are often negotiable. Dealers are keen to sell them to free up cash flow, especially towards the end of a month or a quarter. Don’t be shy; a little bit of negotiation can save you a significant amount.