By Paul Donovan
New cars lose their value at a much faster rate than second-hand cars about three years old, research has shown.
Used-car retailer Carsite.co.uk said the luxury vehicle sector has models that are the biggest losers in terms of depreciation - which is good news for used-car buyers looking for bargains.
A new vehicle just off the forecourt will lose £38 per day, while a three-year-old second-hand car will lose £3.10 a day in depreciation.
One piece of good news, however, for someone who has bought a new car is that it might not necessarily be most expensive option in regards to get car insurance. Research for Moneysupermarket.com found that for some models, particularly a Ford Fiesta, it is cheaper to insure a 2010 model than one that is five or even 10 years older.
"Audi A8 4.2 TDI Quattro SE has an anticipated depreciation rate of £185 a day over its first six months, or more than 50 per cent of the car's value," reported Carsite.co.uk.
"The 4x4 sector shows more stable demand - and slower depreciation - with off-road models such as the Land Rover Discovery, Hyundai Santa Fe and Honda CRV all expected to retain about 80 per cent of their value."
"Showroom tax, VAT, VED, high fuel prices, soaring insurance premiums, parking permits - today's motorist faces a whole catalogue of costs before they can get behind the wheel of a new car," said John Guess of Carsite.co.uk.
"Then as soon as they pull off the forecourt, their vehicle is shedding value to depreciation - the biggest running cost of them all. We've found many buyers are choosing to invest in 2-4 year-old used models and letting others shoulder the financial impact of depreciation."
