New Car Owners Lose £497 In Depreciation Every Month
If you have or are thinking of buying a brand new car this month, then brace yourself for a sharp financial shock the moment you drive off the forecourt. For new research from price comparison and switching service, uSwitch.com, has revealed that the top ten selling cars in 2006 depreciated by an average of 42% or £5,967 in the first year alone .. ouch!
But it gets worse as the years go on so by the fourth year uSwitch.com estimates that an average of £9,676 is wiped off the value of a new car. Levels of depreciation vary from one car to the next according to factors such as: the popularity of the car, the number of manufactured vehicles and the perceived value or quality of the brand among consumers.
The worst car is the Ford Focus Style 1.8, which loses 48% of its value after the first year, and 70% after four years, which is quite surprising as the Focus is a very popular car so you would have thought it to be a good contender in the second hand car market. Even going green will cost you as the Toyota Prius 1.5 T Spirit depreciates by £9,348 or 45% in the first year and by £14,027 (68%) after four years. We motorist’s just can’t win can we?
To avoid all of this you could invest in a super car, as depreciation on is on average just 26%. Oh, but the problem there is the price tag that starts at around 80K.
So what is the answer? Simply don’t buy a new car.
FemaleFirst - Jackie Violet