Shiny cars sporting brand new 08 plates
are now rolling off the production line and, if you’re in the market for a
motor, all the untouched upholstery and that gorgeous new-car smell can be hard
to resist.
But before you rush down to the
forecourt to sign on the dotted line, bear in mind that buying a car fresh out
of the factory could cost you a massive £510 a month in depreciation – the
decline in value of your car over time. That’s more than the price of petrol
and car insurance combined.
Buying new can seem like a good idea.
There’ll be no strange-looking stains on the seats and you’re guaranteed
exactly the specification you’re after, such as your favourite colour, cream
leather interiors or an automatic sun roof. New cars should also be cheaper to
maintain and if anything major does goes wrong, you have the peace of mind of
the manufacturer’s warranty.
But while buying a new car is
definitely seen as a status symbol among some drivers, your 08 plates will come
at a premium. According to a report in the Daily Mail, the top ten
selling cars in 2007 lost an average of £6,124 in their first year, and £9,800
after just four years of ownership.
Guardian car writer Miles
Brignall
agrees, stating that it’s depreciation, rather than
the soaring cost of fuel, that is the most expensive part of car ownership. He
cautions consumers to wait for 12 months, when they could buy the same car for
40% less.
But it’s on three-year-old cars that the
real savings can be made, according to motor trade bible Glass’s Guide. Although these are just out of warranty,
you could pick one up for a fraction of the original purchase price.
If you’ve still got your heart set on
buying a new car, it’s worth doing your homework. Some cars lose their value
faster than others depending on how popular they are, how many are made and how
highly valued the brand is by other consumers.
But it’s
not just new cars you need to shop around for – you’ll also need to choose
wisely when it comes to finding car insurance. Some insurers like MORE TH>N Car Insurance are sympathetic when it comes to depreciation and will
provide a ‘new for old’ vehicle if your car is under 12 months old.
Unfortunately, other providers only pay out the 'market value', which is the
value of the car minus depreciation if you write off your car in the first
year, so make sure you check before you pay your money.
And if you were only buying a new
car in the hope your 08 plates would impress your neighbours, chances are
you’ll be wasting your time. Research has found more than half of
British drivers can’t tell the age of a car by its number plate while 19% said
they had no idea what the new number plates actually looked like.
If new cars are your thing, you should probably be watching
Top Gear this week. You can find out when
it’s on in TV Guide’s listings
or talk to other car enthusiasts in the TV Guide Discuss section. And then talk to MORE TH>N
about a really good car insurance quote – they don’t mind how old your car is.
Afterwards, go pick up a great deal
on your car insurance at MORE TH>N
MORE TH>N is the direct financial services arm of Royal
& SunAlliance. It offers motor, home, pet, life and travel insurance by
phone and via the internet. It also offers van, shop, office, business car,
hotels, property club and contractor insurance direct to small businesses
MORE TH>N is a registered trademark of the Royal &
Sun Alliance Insurance Group plc and a trading style of Royal & Sun
Alliance Insurance plc (No.93792). Registered in England & Wales at
St.Mark’s Court, Chart Way, Horsham, RH12 1XL. Authorised and regulated by the
Financial Services Authority
