Motor industry analysts have indicated that the depreciation rates for cars are getting worse. Low confidence over the economy together with the introduction of green taxes and low emission charging zones has had a negative effect on the value of cars at resale.
A report from the market analyst Eurotaxglass’s has predicted a reduction in the value of used cars by 8% by the end of the year.
It is no coincidence that the smaller more fuel efficient car will hold its value more than the larger family sized car and the 4×4.
A brand new car loses in the region of 12% the moment it leaves the showroom and this news will add to that loss percentage wise in the family sized and 4×4 markets.
The recent credit crunch as well as the slow in the housing market has affected the motor industry as it has always done in recent years. Whenever the housing market slows or the economy shows signs of weakness, the motor industry always suffers.
The consumer is being advised to look at resale value when buying a car to avoid losing money when it comes to selling the vehicle in the long run.
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1 user responded in this post
The answer to beating depreciation is to do more research before you buy. Shortlist those makes you can afford, then check they are the best in their class. If they are, they will likely be in popular demand for short to medium term. Thus the resale price will be remain high.