The extra £2,000 annual cost to new car owners

Owners of new cars have to fork out up to £1,797 a year more than motorists driving older models, a new study has revealed.

Analysis of 12 of the most popular models on British roads by car maintenance firm, motoreasy.com highlighted the financial conundrum of choosing between new and used.

The average cost of owning a W plate (new in 2000) vehicle for the last three years since 2003 stood at £3,902 a year according to motoreasy.com. In comparison, someone running a new 03-registered car over the same period would have had to find £4,772 a year.

Understandably, the choice of model has a significant impact over a three-year ownership cycle. For example, a new Land Rover Freelander 1.8i ES would have cost you £20,996 to fuel, insure, service, tax, repair and finance. In comparison, a thirty-six month old version would have cost £15,064 – or £1,797 extra per annum. But a Ford Focus 1.8i would have reduced this difference to nearer £1,000.

Depreciation remains the biggest cost of motoring. Based on the cars sampled, motoreasy.com found new car buyers will lose nearly half (46 percent) of the original price during the first three years of ownership – for some that figure is closer to 90 percent.

On average, depreciation hits new car drivers to the tune of 21p for every mile travelled – or 44 percent more than the thrifty used car owner.

However, it’s not all-good news for the used car owner. Unlike those opting for something straight out of the showroom, they will not be protected from unforeseen repairs, unless they’ve purchased a good warranty, and will invariably end up paying more to service their car.

David Gerrans, spokesman for motoreasy.com, says: "There are pluses and minuses for choosing new over used, and the implication is very model dependent. Motorists wishing to reduce their costs should seriously consider keeping their cars for longer and purchasing a used car next time around."

And, whether you choose new or used, rocketing prices make fuel the second biggest expenditure. A massive 20 percent increase over the past three years at the pumps***, means we will spend £1,080 at the pumps every year.

Gerrans continued: "Like our homes, cars remain a necessity for the majority of us. However, the final price tag, when you take everything into account, does make you think, even shudder!