Car loans customers warned: 'depreciation is key'One of the most important things to consider when car loans customers consider buying a new car is depreciation, a recent report claims.
One of the most important things to remember when car loans customers consider buying a new car is depreciation, a recent report claims.
Moneyhighstreet.com states that as possibly "the biggest hidden cost involved in buying a car", drivers should be aware that even when they have secured their car finance there is an important decision they have yet to make.
By selecting the right vehicle, shoppers can limit the amount of money they will potentially lose in the long-term and to minimise the impact of depreciation it is noted that there are a number of things to consider.
"New cars depreciate the most in the first couple of years. After this, they start losing value at a lower rate. If you're looking for a used car, you're better off getting one that's around five years old, rather than one or two years old," the article states.
It is also noted that BMW's Mini was recently highlighted as one of the least depreciating cars due to their popularity and buying a vehicle that is in high demand could be beneficial.
Earlier this month, the News Herald reported that car finance customers were becoming savvy about their purchases and are increasingly likely to do their homework on the vehicles they want.
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Posted by Edwin Miles on