Depreciation 'can affect finances'

Date: 29/02/2008 11:00

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New-car owners have been advised that the value of the UK's top-selling cars could be falling by as much as £510 a month.

Price comparison site uSwitch advises that the UK's best-selling car, the Ford Focus Style, depreciates by 43 per cent in its first year, amounting to a sunk cost of £6,470.

The Vauxhall Vectra was found to suffer the highest level of depreciation, losing 58 per cent of its value in the first year.

Ashton Berkhauer, insurance expert at uSwitch.com, said: "Despite the rapid depreciation of new cars, insurers are generally sympathetic certainly in the first year of ownership."

As well as advising people to look carefully at depreciation when buying a new car, he also states that buyers should shop around car insurance providers to make sure they get a deal that provides value for money.

What Car? offers a service that allows vehicle-owners to compare the rates of depreciation of up to four cars, with the aim of allowing customers to make a more informed decision regarding future purchases.

InsureandGo offers a range of competitive car insurance policies to suit many different types of vehicle.

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