Car Depreciation: £6,000 In First Year
March 1st, 2008
Thinking about buying a brand new car soon?
Then consider this - the average new car loses £6,000 of its value in the first year you own it - yes, that’s effectively £500 “down the drain” every month in year one. So it’s often worth checking out the secondhand market for your chosen vehicle to see if you can find a similar model at a bargain price.
The Telegraph article also reminds you to check out how your insurer would deal with a claim in the first year - some will pay out on a “new for old” basis, but others will only pay out the market value for the car.
Plus, car finance is rarely cheapest when taken out from the dealers themselves - often a personal loan will be a better option, but either way, with the amount of money a new car will be losing as soon as you drive it off the forecourt, it pays to shop around and consider the secondhand car market instead.
Categories: Money Saving, Tips
