As part of their brand new Ageing Fleets study, the experts at Confused.com reveal the ten car brands that depreciate the most and least over their first five years and how holding onto your used car could put you out of pocket in the long run.
Examining ten popular makes and models, the experts determine the fastest depreciating car brands over one, five and ten years.
The Ageing Fleets Report Highlights:
- The Volkswagen Passat depreciates by a staggering 11.9% after just one year of ownership. Whilst this model can be purchased at around £27,375, after just twelve months, the resale value could have been reduced by over £3,000. After five years, the value has halved (-49%) to £13,413.
- A Toyota Hilux also came out with a high depreciation rate of 11.9% after one year of ownership. The model can be purchased for around £41,816. After twelve months, the resale value could have been reduced by over £4,976, bringing the value to approximately £36,839.
- Out of the ten makes and models, the Volkswagen Golf has the lowest depreciation rate, dropping by just 3.4% after one year of ownership. Available to purchase at around £20,500, after five years of ownership, the model will still be worth a decent £13,058
“Owning an older car may seem cheaper at the point of sale, but owning a used car or staying loyal to your brand can often cost you more, further down the line. Motorists who stick with the same manufacturer year after year could be worse off as the natural value depreciation could leave them out of pocket. But there are some other ways that loyal motorists could lose out.
“Motorists with an allegiance to a particular make usually spend less time searching for a new car, visit fewer dealers and spend less time comparing prices. For example, if you are a Nissan driver, as soon as you drive onto the forecourt in your current Nissan, you sign brand loyalty to the salesperson, which could mean you have less bargaining power to negotiate the price down.
“It would be wise to keep the make and model of your current car secret from the salesperson until negotiations are complete. If you give the impression that you will compare prices and visit other dealerships, you may end up with a better deal.”
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