How to Guard Against Car Depreciation: Expert Tips for Smart Car Buyers

Are you in the market for a new car? If so, you may want to listen up because I have some insider tips from a finance expert that could save you hundreds of pounds.

We all know that cars lose their value as soon as you drive them off the forecourt, but did you know that there is a simple rule of thumb that could help you avoid unnecessary depreciation? Nischa, an investment banker, shared her top tips on her YouTube channel, and they are definitely worth considering.

According to Nischa, buying a brand-new car is often not the most financially savvy option. New cars come with a hefty price tag and can lose up to 35% of their value in the first year alone. That means if you spent £10,000 on a new car, it could be worth just £6,500 by the end of the year.

Instead, Nischa recommends looking for a car that is between three to five years old. This is the sweet spot for used cars because they have already shed much of their initial value, making them a more affordable option. Plus, after five years, the rate of depreciation slows down significantly, so you won’t lose as much money in the long run.

But before you rush out to buy a used car, it’s important to be aware of the potential costs of maintenance and repairs. While buying a used car can save you money upfront, you may end up spending more in the long run if the car requires frequent repairs.

To help you navigate the world of used car buying, motoring expert Pete Ridley has shared some essential tips for buyers. From avoiding scams to knowing what red flags to look out for, Ridley’s advice could help you make a smart purchase and avoid getting swindled.

So, if you’re in the market for a new set of wheels, consider opting for a used car that is between three to five years old. Not only will you save money upfront, but you’ll also avoid the hefty depreciation that comes with buying a brand-new car. Happy car hunting!