Car Insurance News
Older cars retain value better than new ones
7 September 2010
Car insurance customers would be surprised to know that older second hand vehicles have been found to retain value better brand new cars.
The recent research carried out by Carsite.co.uk found that new cars depreciate in value by £38 each day, accounting for a 36 per cent loss of their total value, in the first three months of ownership.
In comparison, cars that are three years old lose only £3.10 per day in the same time period, it was found.
John Guess of Carsite.co.uk said: "We've found many buyers are choosing to invest in two-four year-old used models and letting others shoulder the financial impact of depreciation."
The depreciation rate has been equated to losing £1.16 for every mile driven and happens over the first 6,000 miles clocked by the vehicle.
Recently, research conducted by the British car Auctions found that sales in the used car segment had been pivotal in the economic recovery of the automobile industry.
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