One of the most painful expenses is vehicle depreciation, i.e. the money your vehicle loses from its original value. However, this depreciation can be used to your advantage.
Vehicles depreciate quickest during the first three years - some losing tens of thousands of pounds. Influencing factors include supply and demand, desirability, and political and economic trends. Generally, inexpensive small motors depreciate gently whereas executive models with unfashionable badges plummet.
The trick is to buy vehicles that have depreciated heavily but will now lose at a slower rate.
For example, in 2006 a new Ford Mondeo 2.0-litre Ghia X cost £21,325. It is now worth approximately £7,500. Although depreciation in the first three years was £13,825, the vehicle is only likely to lose a further £4,500 in the next four.
The car depreciation rates can never be eliminated - but they can be minimised. Homework is necessary here.
Whether you are paying in pounds,
dollars, or yen -
buying the right motor, at the optimum age,
can literally save you thousands.
Stephen has many articles to his credit, and we first published Driving in Snow during the winter earlier this year which was very timely.
This also applies equally well to the article on
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