With the “62” vehicle registration plates coming out, new car buyers are being urged to consider just how much a new vehicle can depreciate in a very short time.
Shocking data from car finance and dealer specialist carfinance247.co.uk reveals that new vehicles could lose anything from 12-25% of their value in less than 6 months – suggesting that buying a nearly new car could give you all the benefits of having a new vehicle (such as low mileage etc), whilst still making potentially huge cost savings.
Louis Rix, Director at Carfinance247.co.uk, says: “We took a sample of some nearly new and used vehicles currently for sale* and compared their current selling price to what it was at new, with some surprising results.”
Mr. Rix gives three examples:
- a 2012 registration plate Vauxhall Corsa 1.0 bought new would have cost around £12,685 – less than 6 months’ later, the value has depreciated by 25% to £9,488;
- an Audi A6 3.0 TDI bought new less than 6 months ago, would have cost around £36,555. Now you can pick up one for £31,900 – a 12% depreciation;
- a 2010 Ford Focus 2.0 TDI costs £21,045 new. In less than two years, it has lost 43% of its value and you can snap up one for £11,988.
He adds: “In the midst of these austere times, how would you feel about burning £3,000 in cash? In the first example, that is exactly what you are doing – as soon as you drive a new car off the dealer’s forecourt, you have lost money.
“And as our data reveals, getting a nearly new used car can be a way to really maximise your budget. Using a service such as ours means you can benefit from getting a fully checked vehicle (all our used cars are given full checks including history checks to make sure there is no outstanding finance), without the hefty price tag.”
*Independent research carried out using vehicles currently available on the Carfinance247.co.uk website, compared with the same makes and models as new, using the Which? Car depreciation tool.