Close Menu
Zero2Turbo
    Facebook X (Twitter) Instagram
    Facebook X (Twitter) Instagram RSS
    Zero2Turbo
    • Home
    • Contact
    • Videos
      Featured

      Ford Mustang GTD Betters Nurburging Lap Record By 5.5 Seconds

      By Zero2TurboMay 1, 2025
      Recent

      Ford Mustang GTD Betters Nurburging Lap Record By 5.5 Seconds

      May 1, 2025

      Is Porsche Preparing A Road Legal 963 Le Mans Car?

      April 29, 2025

      Insane and Expensive Facts About The Bugatti Bolide

      April 16, 2025
    • South Africa
    • Zero2Turbo Telegram
    Zero2Turbo
    Home»News»What’s the Biggest Cost to Buying a Car
    News

    What’s the Biggest Cost to Buying a Car

    By Zero2TurboJune 30, 2015Updated:March 28, 2017No Comments
    Facebook Email Twitter LinkedIn Telegram WhatsApp
    Share
    Facebook Email Twitter LinkedIn WhatsApp Telegram

    When most people consider buying a new car, the biggest barrier to entry is the initial purchase price. After that, they also have to factor in the price of insurance and the continuing fuel bill the vehicle is going to rack up. There is another cost, though, that can be overlooked. Depreciation is the difference between the amount you originally paid for an asset and the amount you can get back when you decide to sell.

    What Should You Expect
    Typically, the average new car will lose around 50-60% of its initial asking price after three years. In fact, the moment the vehicle is driven out of the seller’s parking lot it loses a considerable amount of its original value. You can expect a loss of 20% in the first year of ownership and a further 15-20% during the second and third years.

    Where new car buyers often see the most damage is in luxury vehicles, from premium manufacturers like Audi, BMW, and Mercedes-Benz, which have a higher initial cost. A vehicle like this which originally retailed for £50,000 could lose around £10,000 a year in value. This is why the used market is so competitive for these types of vehicles. While a five year old Mercedes-Benz won’t come with that new car smell anymore, purchasing it at this point makes much more financially sense. Compared to the first few years of ownership, the vehicle’s rate of depreciation is will be highly reduced from now on.

    How to Minimize the Risks
    While buying an older vehicle means that it will depreciate very little, if at all, over the coming years, you should also remember that the cost of repairs and maintenance will likely be higher. Not only will parts eventually need to be replaced, but you may also be charged a premium on sourcing components that are no longer in production.

    Some of the ways you can minimize depreciation in a vehicle include keeping the mileage low–preferably under 10,000 miles per year–making sure it sees regular servicing, and keeping the vehicle in good overall condition throughout your ownership. Keep a servicing record as well as a log of any repairs you’ve had to make to the vehicle.
    While these figures are typical of the average new vehicle, each specific make and model can fluctuate. When buying a new car, make sure you research the used market for past models if depreciation is a concern to you.

    Share. Facebook Email Twitter LinkedIn WhatsApp Telegram
    Previous ArticleFloyd Mayweather Is Getting Two Koenisegg CCXR’s One Of Them Is A R59 Million Trevita
    Next Article Is Leasing the Right Choice for You?

    Related Posts

    New Techart Aerokit Gives New Porsche 911 Healthy Dose of Presence

    May 9, 2025

    Next-Gen Range Rover Velar Undergoing Big Transformation

    May 8, 2025

    Mansory Makes Convertible Mercedes-AMG G63

    May 7, 2025

    Electric Ferrari Only Coming In 2026

    May 7, 2025

    Limited Mercedes-AMG GT63 APXGP Edition Revealed

    May 5, 2025

    GWM Aiming To Take On Ferrari With Range Topping Supercar

    May 5, 2025
    Facebook X (Twitter) Instagram YouTube RSS
    Designed by Zero2Turbo.

    Type above and press Enter to search. Press Esc to cancel.