There is nothing like that new car feeling, not to mention the peace of mind of safety and reliability. Some people in the market are weighing up the option of buying new or used.
For some potential buyers deprecation is a concern when buying a brand new car, and rightly so, the value or all cars depreciate over time. But did you know some cars retain their value more than others?
Having an idea about the depreciation of the model you may be considering may help in your decision-making process.
Depreciation shouldn’t be the key factor you consider. In our opinion safety and cost are the most important factors. However, this list can be useful to you when making your decision.
A recent survey by Redbook reveals the following cars have slower depreciation values, meaning if you want to sell, your likely to be able to get a good sale price.
- Toyota Corolla – Depreciation after three years: 27 – 36%*
- Mazda 3 – Depreciation after three years: 31 – 39%*
- Honda CR-V – Depreciation after three years: 31 – 39%*
- Subaru Forester – Depreciation after three years: 24 – 31%*
- Volkswagen Polo – Depreciation after three years: 38 – 47%*
The sale of your current car can help you upgrade sooner
Unfortunately, depreciation is something we can’t avoid – but you can be smart about it. It’s not always the best idea to wait until your car breaks down to decide to upgrade. Thinking ahead can allow you to land a great deal on your used car, and then put that money towards buying a newer, safer and more reliable model.
If your current car features in the list above, you may be able to negotiate an excellent private sale or trade in price.
Here’s what you can do:
- Find out what your current car is worth
- Select a few models you would like to upgrade to
- If you have a current loan – chat to a broker about a low rate increase or consolidate it for an increase
- Apply for pre-approval
- Apply for a competitive car loan so you can upgrade