Wise buying ‘effectively’ slashes new car depreciation

Bagging a top bargain can halve a year’s depreciation on a new car, according to research.

Most motorists know buying a new car is an expensive process – not only due to the dealership price, but also because the value nosedives the moment it is driven off the forecourt. In most cases thousands of pounds are wiped of a vehicle’s value the moment it takes to the street.

However, the savings made by opting to buy a new car online could mean eliminating most of the money lost over the first year of depreciation – turning to the internet to buy a new car could mean savings of more than £3,000.

moneysupermarket.com analysis of the most searched-for cars on its website reveal a new Fiat Punto Hatchback 1.2 Grande Active will cost just £5,399 – a £2,590 saving on its list price of £7,989. However, further research shows this car will also typically lose £2,637 from its value over the first year – meaning the initial saving made almost pays for the loss made in depreciation.

John Sexton, head of cars at moneysupermarket.com, said: “Our research shows buying a car online is a shrewd move. Not only will consumers save time and effort by not having to traipse around a number of car showrooms battling salesmen for a bargain, they will also benefit by literally thousands of pounds through shopping around at home on the internet.

“One of the worst aspects of buying a car is the huge amount of money wiped off its value in depreciation – especially over the first year. But buying wisely can reduce your loss drastically if you decide to sell the vehicle at the end of the first year – a pretty good result, and a sound way to buy.”