Some new cars on sale in the UK could plummet to less than a quarter of their current value by 2007, according to consumer magazine Which?.
The magazine said that, with used car prices in the UK still falling, buyers should consider how much depreciation costs them in hard cash and has published a list which predicts which cars will depreciate most – and least.
Bottom of the luxury car table is the Alfa Romeo 166 2.0 Twin Spark Lusso, which costs £24,400 new. By 2007, this car could lose 77% of its value, or whopping £18,630.
On the other hand, those who fork out £28,340 for a top line Mercedes-Benz E Class 200 Elegance, might lose 54% of its value, or £15,140, £3,490 less than the Alfa.
Even the best performing superminis will lose well over £1,000 per year, averaged over the first three years. The Suzuki Ignis 1.5 4GRIP costs £8,995 new, considerably cheaper than the Mini Cooper 1.6 at £12,100. But the Suzuki is predicted to lose 74% or £6,510 in three years, £485 more than the loss on the Mini (which might lose 50% or £6,025).
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By GlobalDataThe VW Beetle 1.6 costs £12,345. But, if it were sold in three years’ time, it should lose less money (£6,640 or 54%) than many of the lower-priced medium range models, such as the Hyundai Accent 1.3CDX (which could lose £7,660, or 74%) or the Citroen Xsara 1.4i Desire (which might lose £8,440, or 72%).
Which? also rated luxury cars, MPVs, sports and coupe cars, and off-roaders.
Editor Malcolm Coles said: “It can be worth paying up front for a more desirable car that holds its value well. Buying a cheaper car that depreciates rapidly is a false economy.”