What is Car depreciation and how does it impact me when looking to lease a car? Car depreciation is a major concern for those who opt to buy a car either outright or on finance. The moment you drive the car off the forecourt the value will fall but how much is the question.
Based on a 3-year-old car having covered 24,000 miles let’s review the worse depreciating car this is the Fiat Tipo losing 70.3% of its original purchase price. The BMW M2 will cost you £23,000 in depreciation which equates to 53.% against the original purchase price. On average most cars depreciate between 40-47% over the average finance term above.
One way to avoid paying for any depreciation is with leasing as the finance company will take the financial risk not you. At the end of the term, you simply hand back the vehicle and walk away with complete peace of mind.
If you are looking to lease or buy a new car then contact us today and we can help you understand which will be more beneficial for you or for your business.
9th February 2021
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