How to run a new SEAT Leon for less than a used one

  • Trade up to a new car to cut your monthly bills
  • Take advantage of large deposit contributions
  • Lower APR charges on new cars than used models

Around three times more used cars are sold each year than new cars. If you’re one of the millions of drivers resigned to driving a second-hand model, however, you could actually save yourself a bundle by financing a new car compared with a used one.

Lower your monthly costs by choosing a new car

While a three-year old, 25,000-mile SEAT Leon 1.4 TSI FR Technology – on sale for £12,995 – would set you back around £330 per month from one of the car company’s main dealers (on a three-year PCP finance scheme with no deposit), a brand new model could cost you just £320 per month.*

Consider leasing a new car and you could cut your average monthly payments even further to just £306 per month (over three years with admin fee and upfront payment included in monthly cost).*

Look out for finance deals including large deposit contributions

How is this possible? Car manufacturers are much keener to get you into a new car than a used one. As a result, finance deals on brand new cars often include large deposit contributions – which are effectively just one big discount – and zero-percent APR.

Finance a used car, though, and even if you do get a discount it’s likely to be much smaller, while interest rates are typically significantly higher.

Pay 10% lower charges on new SEAT than used one

SEAT is currently offering a substantial £2,500 deposit contribution on its Leon hatchback along with 4.9% APR. Dealers will charge you much higher rates on used models, though – 14.9% in the case of the example we found – with no deposit contribution available. Consequently, despite being available for just £12,995 you’d pay lower PCP finance payments each month by opting for a brand new £20,525 Leon.*

Be aware, though, that if you plan to own the car at the end of the scheme you’d be better off finding a low APR personal loan – rates of as little as 3.0% are currently available for balances up to £20,000 – which could see you paying £444 per month compared with £456 for the new car. At the end of these loan payments you'd automatically own the car.*

Want to find out more about car finance? Take a look at the stories below:

Top affordable low-deposit hatchbacks

Great seven-seaters for £350 per month

First car leasing heroes from just £76 per month

How to finance a high-end car on a low-end budget

Car finance: what is Just Add Fuel?

*Deals are correct at time of publication. Everyone’s financial circumstances are different and credit is not always available – Parkers cannot recommend a deal for you specifically. These deals are indicative examples of some packages available this week.