Buyers urged to never forget deprecation
HPI are reminding car buyers to remember deprecation when making their next purchase.
Still the biggest cost in operating a car [full story], deprecation can hit owners hard when they come to selling their vehicle, and although there is no hard and fast rule to how much a vehicle will devalue, vehicle information expert HPI says there is plenty that can weaken its impact.
New cars can see their value nosedive and Nicola Johnson, Consumer Services Manager for HPI, advised motorists not to get carried away when choosing their car.
“All too often, when we first see our dream car, we just want to jump in it and drive away, making it all too easy to forget about the day when we will want to sell it in a few years’ time,” she explains.
“Careful buyers will do their research to find out the history of the vehicle, as well as how much the vehicle tax will be, the CO2 emission levels, and how expensive on fuel it could be – all information that HPI provide as standard with the HPI Check.”
She added that buyers can also gain a practical indication of a vehicle’s deprecation by comparing original and current prices.
Another clever way to avoid the deprecation sting is by getting your car on contract hire.
ContractHireAndLeasing.com has thousands of deals available as well as sound advice on how to go about leasing your next vehicle.
Costly mistake
Mike Hind of used car pricing experts CAP agreed that whether the car was new or used made a significant difference.
“Understanding what your intended purchase will be worth in the future will help you avoid a potentially costly mistake,” he said. “It might even mean you can afford to spend more up front on the car you always wanted, if it’s going to lose less money in the long run.
“But don’t assume low depreciation always guarantees the lowest ownership cost over time if it means you have to pay more in the first place.
“For example, a Volkswagen Golf 1.6 FSi Match purchased new in January 2007 beat a Ford Focus 1.6 Zetec in terms of money lost over the 4 years to January 2011. In this case the Golf lost £8,622 over the period, compared with £10,082 for the Focus.
“But if you had bought them as one year old cars in January 2008, the Focus would have lost £5,395 compared with £6,745 for the Golf – an overall saving on depreciation costs by the Focus of £1,350 over three years.”
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