Depreciation costs new car buyers 20 billion

New car buyers should be wary of their vehicles quickly depreciating in value, a consumer watchdog has pointed out.

15:52 11 November 2004

New car buyers should be wary of their vehicles quickly depreciating in value, a consumer watchdog has pointed out.

Wisebuyer's has stated that by 2007, British motorists will have lost an estimated 20 billion on the value of the 2.58 million new vehicles bought during 2004.

According to Wisebuyer's, almost 60 per cent of the estimated 35 billion spent in 2004 will be lost, due to depreciation during the first three years of ownership.

Nic Barfield, editor of WiseBuyer's, said: "Picking a year-old car can save thousands of pounds off high list prices, cutting running costs at a stroke.

"A three-year-old will be even more economical, while a well maintained five-year-old vehicle with average mileage could prove to be the best bargain of all," he added.