Car Depreciation: £6,000 In First Year

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.



Leave a Comment

Your email address will not be published. Required fields are marked *