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Thursday, 13 March 2008, 02:57 GMT

Car depreciation rates worsening

Four wheel drive car The current economic uncertainty, coupled with green taxes, are making car depreciation rates worse, according to motor industry analysts.

Analysts Eurotaxglass's have told the BBC the value of used cars will fall by an additional 8% this year.

Big family cars, which traditionally lose most value, and four-wheel drive vehicles are worst affected.

By comparison, say the experts, fuel efficient cars and smaller vehicles are holding their value better.

Slowdown

New cars automatically depreciate in value the moment they leave the garage forecourt.

The warning from Eurotaxglass's suggests that the increased cost of borrowing, stagnant house prices and the credit crunch have now spread to the car market.

But the experts are warning consumers to take account of resale values when purchasing a vehicle in order to avoid any nasty surprises down the line.



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Related to this story:
Gas guzzlers set to face £950 tax (12 Mar 08 |  Business )
New car running costs 'rise £500' (20 Oct 06 |  UK )
Is a new car worth the money? (25 May 04 |  Business )
Family cars 'depreciate quickest' (21 Jan 04 |  Business )

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