How much should you spend on a car, new vs used cars and everything in between

Buying a car should be exciting, but once you start looking, the big questions hit fast: how much should you spend? Is new or used the smarter move? With prices varying and advice coming from every direction, it’s easy to feel unsure. Here’s a simple breakdown to help you choose what really works for your budget and your lifestyle.

Is it better to buy a new or used car?

There’s no one-size-fits-all answer, it depends on what matters most to you.

Why people choose new cars

A new car comes with the reassurance of a full warranty, meaning fewer surprises and less risk of major repair costs (as long as you follow the warranty terms). You also get the latest tech, improved safety features, and the comfort of being the car’s very first owner.

If you’re leaning this way, have a look at our new car buyer’s guide.

Why used cars are often better value

A high-quality used car can offer all the comfort and features you want, without the price tag of buying new. You’ll often get a higher spec model for a lot less money, and because the car has already gone through its biggest depreciation, it tends to hold its value better over time.

Used cars that are only a few years old still offer modern features, strong reliability, and good fuel efficiency, making them a smart financial choice.

In short:

• If you want the latest features and low risk, go new.
• If you want maximum value for your money, go used, especially premium used.

The benefits of buying a premium used car

Choosing a premium used car instead of a brand new but basic model can be a great decision. Here’s why:

1. Better reliability

   Premium cars are built with higher quality materials and components, which means they generally last longer and perform better over time. Many used premium cars come with a full service history too, giving you confidence that they’ve been properly maintained.

   It’s not about the “new car smell”; it’s about long-term peace of mind.

2. Lower maintenance costs

   This might seem surprising, but many higher end used cars actually need fewer repairs over time compared to lower spec new cars. Better engineering often means parts wear more slowly and major issues are less common, saving you money down the line.

3. A more comfortable drive

   Premium cars often come with better interiors, smoother handling, and advanced safety technology. That means a more enjoyable drive and less fatigue on long trips. Comfort isn’t just a luxury, it makes every journey safer and more relaxing.

   If safety is a key consideration, check out our guide to choosing a safe car.

4. Better long term value

   New cars drop in value quickly, especially in the first year. Premium used cars have already passed that steep decline, so their value tends to stabilise. That gives you more car for your money, with slower depreciation.

So how much should you spend on a car?

When considering how much to spend on a car, it really comes down to your lifestyle, your needs, and what you want from your car. When you think about the full cost of ownership, choosing a better-quality car often makes more sense than settling for something new but lower-spec. It’s a decision that can pay off in both performance and peace of mind. If you are only starting your search, take a look at our top tips for buying a used car.

Financing a premium used car

Financing can make upgrading your car much easier and there are many ways to finance a used car purchase. See our blog on buying a car on finance and the different options available. Avant Money offers Ireland's best fixed rates on Car Loans over €30k*. An Avant Money Car Loan can be a smart way to enjoy a premium driving experience without stretching your budget.

* Rates and loan terms are correct as of 23rd April 2026 and are subject to change (Source: CCPC.ie, excluding green loans). Maximum APR (Annual Percentage Rate) is 19.9%. Minimum loan term is 12 months and maximum term is 120 months, loan terms vary depending on the purpose of the loan, terms greater than 84 months up to a maximum of 120 months are only available for refinance and home improvement loans of €20,000 to €75,000. Avant Money loans are only available to customers over the age of 18 and resident of Republic of Ireland. Lending Criteria, Terms and Conditions apply.

Representative example: On a €30,000 loan over 5 years, at a fixed rate of 6.5% (6.7% APR) you will pay €586.98 a month. The total cost of credit would be €5,219.07 and the total amount repayable would be €35,219.07.

Bankinter S.A., trading as Avant Money, is authorised by the Banco de España in Spain and is regulated by the Central Bank of Ireland for consumer protection rules.