rileyuk.co.uk

The £2000 incetnive to buy a new car could be wiped out in as little as 88 days due to depreciation. This article goes on to further prove that you should never buy a new car as they loose as much as 51% of their value in the first year.

I am glad to say I last bought a 6month old car so that is a bit of a relief as I probably only lost about 25% of its value! As it is (according to Autotrader) our car has still lost 50% of the purchase price over the last 4 years. To be honest we have put over 65,000 miles on the clock which has the biggest effect on the value. I will have to remember this next time that I get some car insurance. If we reduce the value of the car then the cost should reduce as well.

If we reduce the value of the car then the cost should reduce as well.

It might, but if you had an accident and the car repair cost started to approach the cost of the car, then they might "write it off" instead and just pay you the (reduced) value of the car.

Be careful of what you do with insurance companies!