We’re not all lucky enough to be able to afford to buy a brand-new car straight from the showroom, and there are many of us who don’t want to either, preferring to find ourselves a little gem amongst the hundreds of thousands of used cars on the market today.
The used car market in the UK is huge, with more than six million second-hand cars being sold every year, and it’s not surprising given that, according to the AA, a brand new car has lost sixty per cent of its value within the first three years of ownership. But which used cars hold their value best?
Used Cars Which Hold Their Value
All cars will lose their value over time – it’s a simple fact of life. But some depreciate at a slower rate than others. As a general rule of thumb, many cars which are mass-produced hold their value best as they are in great demand. That being said, there are certain badges and rare models that also hold their value well. But, of course, it’s not always easy to predict which cars will still be popular, or rare, within three to five years.
As well as depreciation, it’s also worth considering the varying costs involved in running and maintaining a particular type of car if you’re trying to choose between more than one with similar purchase prices.
The Difference Between Insuring New and Used Cars
Because brand-new cars lose so much value so quickly, there is often a need to add gap insurance to standard motor insurance. This type of insurance covers the significant initial drop in value should an accident occur in the first year or so of ownership.
Of course, personal car insurance is nothing in comparison to the cost of motor trade insurance. But companies such as quotemetoday.co.uk/motor-trade-insurance specialise in this area and can often offer competitive quotes to those in the business.
Aside from considering insurance, there are some other things to consider when buying a used car, though. If you’re buying privately, make sure that the car hasn’t been stolen or written off previously. There’s also a risk that there may be outstanding finance secured against a vehicle you’re intending to buy, so an HPI check is a worthwhile investment.