Who’s seriously buying a new car these days? Sure, you get the prestige of driving your shiny car off the dealer’s forecourt, but the minute you hit the road, the value drops like a stone. Current estimates are that a car loses 50-60% of its original showroom value in the first three years of its life, and you’ve got nothing to show for that. This loss of value is known as depreciation, and there’s not a thing which new car owners can do about it!
Factors that accellerate vehicle depreciation
Three things which accelerate the depreciation, according to What Car, are running costs, quality and original price. Using an average of 55% depreciation, a small car with an original value of £8000 loses £4400, meaning you can pick it up second hand for £3600. Depreciation on an expensive car looks even more amazing, with a 55% depreciation meaning a luxury £40,000 car is only worth £18,000 36 months later. The second hand buyer can pick up an absolute steal!
Avoid cars that lose value quicker than others
Some car brands depreciate faster than others. German and Japanese cars like VW, Honda and Audi have good reputations for build quality, so picking one of these brands mean that your car will hold its value for longer. Not only can you pick up a bargain second hand, you can be safe in the knowledge that when it comes time to trade it in, it will still be desirable and your investment will have been worth it.
Quality Used Cars - Choose Motor Market here in the heart of the West Midlands
Before you go out and buy your new car, take the time to do some research. Motor Market’s friendly and approachable staff can help match you to the perfect car for your budget and needs, and can offer advice on what might work for you, and we pride ourselves on giving our customers the best level of service in the West Midlands. If you’re looking for a new car, excellent finance deals and a warm welcome, you’ve come to the right place.