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In 2021, it seems some car makes and models are losing their value at a far quicker pace than others. Experts at confused.com conducted research into an array of car makes and models to find which depreciate the most in the first year, five years and 10 years.
Among those names were popular brands including Honda, Nissan and Volkswagen.
However, the experts noted that depreciation is most commonly associated with a car model, rather than its make.
Alex Kindred, car insurance expert from Confused.com, explained: “Owning an older car may seem cheaper at the point of sale, but owning a used car or staying loyal to your brand can often cost you more, further down the line.
“Motorists who stick with the same manufacturer year after year could be worse off as the natural value depreciation could leave them out of pocket.
Topping the list for the car which depreciated at the fastest rate is the Volkswagen Passat.
The lowest current cost of this vehicle is £27,375.
In just one year, the experts found the car lost around 11.9 percent of its value.
Over five years this figure grew to 49.6 percent and then to 75.5 percent over 10 years.
The experts explained: “You can pick up a new Volkswagen Passat for around £27,375, but after just twelve months, the resale value could have been reduced by over £3,000.
“After five years, the value has halved to £13,413.”
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The Toyota Hilux came out as the second fastest depreciating car model.
The lowest current cost for this vehicle is £41,816, yet in the first year, this amount plummets by 11.9 percent.
Over the first five years this then drops to 48.6 percent of initial sale price, and 74.5 percent during the first 10 years.
The Nissan X-Trail/Rogue came in third place, depreciating by 10.8 percent in the first year.
The experts found that this amount soared to 46.6 percent in the first five years and 73 percent over the first 10 years.
Owners of a Volkswagen Tiguan could also be in for some bad news.
The car, which has a current lowest retail price of £23,685, was found to depreciate by 10.5 percent in the first year.
Over five years this cost depreciated by 45.9 percent and by 10 years the depreciation figure stands at 72.6 percent.
Honda Civics, though a popular car, were also found to depreciate at speed.
In the first year, a Honda Civic can depreciate by 9.6 percent.
Confused.com found this rate then jumped to 43.7 percent in the first five years and 71.5 percent in the first 10 years.
Other models to make the list include Honda HR-V and CR-V, Toyota Corolla and RAV4, and a Volkswagen Golf.
For those who are due to trade in an old car, Mr Kindred recommends keeping the make and model “secret” while negotiating initially.
He explained: “Motorists with an allegiance to a particular make usually spend less time searching for a new car, visit fewer dealers and spend less time comparing prices. For example, if you are a Nissan driver, as soon as you drive onto the forecourt in your current Nissan, you are signalling brand loyalty to the salesperson which could mean you have less bargaining power to negotiate the price down.
“It would be wise to keep the make and model of your current car secret from the salesperson until negotiations are complete. If you give the impression that you will compare prices and visit other dealerships, you may end up with a better deal.”
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