Depreciation advice for first time car buyers

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Written by Administrator

Wednesday, 11 July 2007

Car buyers don't spend enough time planning to buy their car. Just comparing today's prices in the classified ads isn't enough.

When buying a used car, you need to know more than one price:

The new price (ideally you want the previous owner to have paid the majority of the depreciation)

Today's two main prices (for sale in dealerships and privately)

Likely price in a year or two, or when you plan to sell it

Compare cars to see which model and specifications lose the most and how quickly before deciding which car to buy.

Many cars lose over 50% of their value in three years, typically around ?15,000, making them a great used buy, but the new car buyer should go for the Cabriolet which loses 33.8% (and is second in the top 10 by percentage)

The customer that buys a new Mini One will lose less than the buyer of a Mini Cooper S. But the used buyer should go for the Cooper S every time, because the previous owner has paid the depreciation and they get all the extra performance!

Remember a car is only worth the guide values in if its not stolen, hiding and faults or been badly looked after.

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