Car Depreciation Rates Worsening
The slowdown is putting the brakes on four-wheel drive prices, the current economic uncertainty, coupled with green taxes, are making car depreciation rates worse, according to motor industry analysts.
Gap insurance can help with the effects of car depreciation.
Analysts Eurotaxglass's have told the BBC the value of used cars will fall by an additional 8% this year.
Big family cars, which traditionally lose most value, and four-wheel drive vehicles are worst affected.
By comparison, say the experts, fuel efficient cars and smaller vehicles are holding their value better.
New cars automatically depreciate in value the moment they leave the garage forecourt.
The warning from Eurotaxglass's suggests that the increased cost of borrowing, stagnant house prices and the credit crunch have now spread to the car market.
But the experts are warning consumers to take account of resale values when purchasing a vehicle in order to avoid any nasty surprises down the line.
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