Depreciation on Cars – Does Brand have anything to do with it?

Depreciation on cars has always been an issue, particular for users who have purchased a car brand new, directly from the manufacturer. It is said that once a user has purchased a new car, the moment they move it from the forecourt, they will lose 20% instantly on the used car market. Therefore the initial depreciation cost can be dramatic, especially if you have spent up to £40,000 on the car.

However, this 20% marker is only a true reflection on certain car manufacturing brands. Audi and Volkswagen, who are generally recognised as being high quality and durable see a much lower depreciation rate than that of the likes of more commoner models such as Vauxhall and Ford and it could be down to the brand perception that these manufacturers receive from the press and the public. With the likes of Ferrari, even though the brand is super expensive, owners still see a significant depreciation of up to £1,500 per week.