Don’t buy a new car – buy new parts
The value of a new car can depreciate by £6,000 in the first year. Be careful when you are looking to buy a new car, as research shows that you may be better off buying a second-hand motor and you can simply buy new parts for a fraction of the price, like new tyres, engine parts, body fixtures, etc.
The amount a car depreciates depends on how many are manufactured, the popularity and the perceived quality of the brand.
As if its not bad enough the depreciation speeds up if the car is a year or older with an average of £9,800 being wiped off the value after 4 years.An example of how depreciation may vary from car to car:
- Vauxhall Vectra – may lose 58% after 1 year and 75% after 4 years
- BMW 325d – may lose 25% after 1 year and 56% after 4 years but at a cost of £30k its going to be a little difficult for many to purchase one to begin with.
When looking for a car make sure you do some research into the best deals available.
As mentioned in one of my earlier posts if your going to get a car on finance then you also need to try and get the best loan deal avaialble. If you were to get a loan at 7% on a £15k loan you will end up paying approximatly £16.5k but if you were to get a loan just over 13% then you will end up paying just over £20k. Therefore potentially you could save about £4,000 by shopping around for the best car loan.
One thing i can say is that i managed to get a deal at 4.5% on a loan for the sexy new Astra. But because its new i am having to cry myself to sleep every night knowing my car is going to be shedding about £6,000 of weight this year. I just wonder if I can even afford to replace any parts when the time comes, even the smaller things like the tyres!
Related Information:Are you looking for a Ford Car Dealer
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BMW Remapping available here
4x4 tyres sold here at great rates
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