Used-car buyers can save themselves from the huge losses incurred due to depreciation by investing in second-hand luxury vehicles, a study has found.
Research by Carsite.co.uk has revealed that depreciation in the second-hand market could make an old used car lose £3.10 daily, while a new car loses as much as £38 per day on average.
Road users already dish out huge amounts of money before buying a car - like fuel costs, permits and insurance premiums. Once the vehicle gets on the road, it gradually loses more and more value due to depreciation.
Luxury vehicles have some of the biggest depreciation rates, such as an Audi A8 4.2 TDI Quattro SE, which is expected to lose some £185 daily for the first six months.
This results in more than half of the car's value having been deflated over this period of time. By buying these vehicles second-hand, users could save themselves the trouble of having to spend endlessly on their new cars.
According to the site: "The 4x4 sector shows more stable demand - and slower depreciation - with off-road models such as the Land Rover Discovery, Hyundai Santa Fe and Honda CRV all expected to retain about 80 per cent of their value."
"Showroom tax, VAT, VED, high fuel prices, soaring insurance premiums, parking permits - today's motorist faces a whole catalogue of costs before they can get behind the wheel of a new car," said John Guess of Carsite.co.uk.
"Then as soon as they pull off the forecourt, their vehicle is shedding value to depreciation - the biggest running cost of them all. We've found many buyers are choosing to invest in 2-4 year-old used models and letting others shoulder the financial impact of depreciation."
© Press Association 2010