Cars are one of life’s biggest money drainers and if you choose one with a bad depreciation rate, the picture gets even worse. As research by Your Money Magazine has found, the top-selling models in Australia are not necessarily the best at holding their value.
Your Money Magazine compared the depreciation rates of the five top-selling models in eight categories to find out which cars keep their value the best after three years.
Managing editor Jackie Pearson said the findings were interesting with over half of the 40 models compared clocking high depreciation rates of 45 per cent or more.
“In one category the top-selling model actually had the worst depreciation rate, losing over 54 per cent of value after three years,” said Pearson.
“Many car owners look to sell after a few years, so it makes sense to look at the depreciation rate before you buy a new car to get an idea of its resale value down the track.”
Your Money Magazine’s tip? Stay small and save.
“Our research showed that small cars hold onto their value more than most other types of cars so you have more chance of getting a good resale price,” said Pearson.
Full coverage of Australia’s best value cars and details on the market best and worst per category are available in the current issue of Your Money Magazine. On sale now at leading newsagents and online at www.yourmoneymag.com.au.