Older Cars Depreciating Rapidly - could Gap Insurance help?
What's Going On With The Motoring Industry? Turmoil and Government Bailouts Are A Daily News Item
Many older large automatic family cars and 4WD’s are becoming harder to sell due to the new car tax rules due to hit our pockets. New luxury car models face similar perils, just look at the latest news on Jaguar over the Christmas period!
As depreciation caused by the changes in road tax administered by the government is set to continue to plague owners of big engine cars and 4wds one has to ask; where will the market stabilise?
To date an estimated 800 million pounds in depreciation has already been taken away from the value of cars built between 2001 and 2006. There is a product called Return To Value Gap which can help protect a cars value as determined on the day of purchasing the policy. It is designed to halt car depreciation in its tracks.
Smaller cars which are not only more economical to run, but also cheaper to buy in the first instance are holding their value far better than bigger, more luxurious cars such as the 5 series BMW, Land Rover or Jaguar.
Many buyers fail to take depreciation into account when trading in their current vehicle for something else and they could lose money over time. The situation becomes much worse if the car is stolen or written off - this is where gap insurance can help.
Among some of the smaller cars which are cheap to run and have the least depreciation are the Mini (Price new £16000), Citroen C1 (Price new £9000), Fiat 500 (Price new £9300), and VW Golf Bluemotion.
Car sales figures have reached a 42 year low, dropping a significant 18.6%. However, economically- minded consumers are buying small cars, and sales of super-minis and city cars have increased.
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