How To Beat Those New Car Depreciation Blues
It’s always nice buying a brand new car, because you don’t have to worry about your car breaking down on the road at some point due to a lack of proper maintenance being carried out by the car’s previous owners, the car will only have delivery miles, and there is also that “new car smell” that some people love!
There are a couple of downsides to buying a brand new car, however. Firstly, there is the obvious point that new cars cost considerably more than used ones, and secondly, there is that thing people hate about all cars in general – depreciation!
The news isn’t all bad, because there are some clever steps you can take to get rid of those depreciation blues; Follow these top tips to make sure you won’t suffer the problems typically associated with new car ownership.
Get a car that doesn’t depreciate much
It’s a well-known fact that all cars lose their value over time, and there hasn’t been one single car that has never lost its value. But here’s the thing: some cars depreciate faster more than others!
For example, cars like the Toyota Yaris and the Ford Focus will lose money hand over fist, yet if you opt for a model from the BMW 5 Series, your car will be worth a darn sight more than other cars of a similar type!
This is because cars with a more prestigious badge and plenty of safety and technology features tend to hold their value more than those which only have the essentials and are considered a “workhorse”.
There are many websites online that enable you to calculate the depreciation values of cars, so it’s worth taking the time to draw up a shortlist of preferred cars and seeing which one holds its value the most.
Here are some tips to help you choose the least-depreciating cars on the market:
- Diesels are generally worth more than petrol cars;
- Cars with automatic transmissions are worth slightly more than manuals;
- Estates and 4x4s are worth more than hatchbacks and coupes.
Buy a pre-registered car
If you aren’t looking to get any optional extras with your new car purchase and you don’t mind what colour the car is (as long as it isn’t too outlandish), you ought to consider buying a pre-registered car.
These are basically cars that large dealerships have bought from the manufacturer in a range of trim levels and colours that are the most attractive to customers, and these are often sold at significantly lower prices than brand new ones that your dealer orders from the manufacturer directly for you.
The Jardine Motors website says that you can still great finance deals on pre-registered cars, so you need not worry about getting the best value finance package.
Lease rather than buy
One of the best ways of beating depreciation is to lease the car rather than buying it with cash or on a traditional hire purchase finance plan. Leasing is basically like long-term car hire, so you are effectively paying for the use of the car, but at the end of the term you can “trade” it in for another new model and start again; perfect for those that fancy a change regularly!