I often have car buyers ask me what cars lose least to depreciation because they don't want to lose a lot of money.
But, massive early depreciation is good news…
Most of us buy cars older than 2 years of age, so actually what we all need is lots of car for little money.
And because depreciation, in cash terms, can only last for a finite period, the more it loses early on, the more car we get for our money and the less we'll lose when we buy a 3 year old motor.
Take a look at the prices for these cars to see what I mean. These are some great examples of cars that have lost over half their value, making them top buys for most of us:
A new Ford C-Max 1.8 litre petrol is around £17,000. A 3 year old one with 30,000 miles or so on the clock is only £6,000-£7,000. What a great deal.
Likewise a Vauxhall Astra 1.6 litre petrol is £16,000 new is also £9-£10,000 less after 3 years with similar mileage.
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If you want a bigger car, the deals on Peugeot 407s will impress, and if you want a runaround, then take a look at the deals on Renault Clios (pictured).
So don't believe the new car bunkum - low depreciation is bad, high depreciation is good.