There are many important things to think about when buying a car, but one of the most important is depreciation (especially if you are buying new). A car’s depreciation rate will have a significant impact on your finances, so it is something that you need to research before making a decision on a vehicle.
What is Deprecation?
Cars are constantly losing value and this is known as deprecation, but the rate of deprecation can vary between different vehicles. Additionally, a car’s age plays a major role as vehicles lose around a third of their value and over half of their value after three years. After this, the rate of deprecation slows down.
So, what cars have the fastest depreciation rate?
Peugeot 508
The 508 from Peugeot is one of the most popular cars around and for good reason as it is a great all-rounder. While there is a lot to like about the 508, you will find that Whatcar’s research looked at vehicles that lost the highest percentage of their original value in three years and the Peugeot 508 SW was one of the worst retaining just 38.7% of its value.
Alfa Romeo Stelvio
Italian manufacturer Alfa Romeo makes some of the most stylish vehicles available and the Stelvio is an SUV with their trademark good looks along with a powerful driving performance. Despite this, the Stelvio retains just 38.65% of its value after 3 years and this makes it the fastest depreciation SUV. If you purchase a Stelvio, it is a good idea to take out Alfa Romeo gap insurance – this will bridge the gap between the payout (current market value) and the amount originally paid in the event of a write-off.
Audi S6 Avant
You know that you are getting quality when you buy an Audi and the A6 Avant is a fast version of the popular estate. Audi cars are always good investments, but you will find that description is an issue with this particular model as it holds just 37.4% of its value after three years. Therefore, it could be smarter to buy a used model to avoid the biggest deprecation hit.
Fiat Tipo
Fiat is a trusted manufacturer and a popular choice in the UK, especially as their vehicles are often affordable to buy and run. The Tipo family hatchback has a lot to like, but you need to be prepared for the fact that it loses as much as 33.3% of its value after three years. Again, this means that a second-hand Tipo could be the best option.
Car depreciation is something that you always need to consider when buying a car, especially if you are buying new. The above are some of the cars that have the fastest deprecation rate – while this does not mean that they should be avoided, it is important to be aware of their rate of deprecation.
