Find out how car value decrease per year
Anyone interested in buying a new car will be told by some well-meaning soul that they’ll lose half the car’s value the second they drive it off the forecourt. While that’s true for some cars, that’s not the case with all vehicles. We’ll give you an indication of how your car value decrease per year is worked out so you can be a bit better informed when you go to buy your next vehicle.Depreciation
We only worry about depreciation because we want to sell our cars on when we’re finished with them so it pays to know what affects it. It goes without saying that the car’s condition, it’s age and the mileage are the main factors but what else affects a car’s price. The amount of owners the car had throughout its life is also a contributing factor to its resale value. A continual service history at a main dealer is another way of helping to get a better resale amount, but be careful to keep record of this as buyers aren’t going to take your word for it.
With so many different cars on Britain’s roads it’s not possible to list each make and model’s depreciation value so we’ll just give you an idea of how it typically works. When a new car’s driven off the forecourt it will lose around 40% of its value. The rarer the car, the less you’ll lose and there are instances when exotic supercars are worth more the second they’re driven out of the Lamborghini or Ferrari dealership because prospective owners don’t want to be put onto a long waiting list. If you drive around 10,000 miles per annum you can expect to lose a further 10% of the car’s purchase price per year for years 2 and 3 meaning that by the time you have to MOT the car you will have lost 60% of its value.