Obviously a used car is always going to depreciate in value, unless it somehow becomes famous, rare or antique. For the most part, cars are sold at a significant loss. For those who can’t afford to buy new this is clearly very good news and the used car market in the UK is huge.
But why do cars depreciate in value, and, more pertinently, what are the factors that affect car resale values?
The short answer is that there are lots and lots of factors. For example, the make and model of your car might have an impact in terms of how well it does in the used car market. Some makes of car are very desirable (whether they are used or not) and so they tend to retain much of this value even when they are resold.
Condition is obviously a factor. When a car becomes written off then it means it’s no longer cost effective to repair the car and keep it on the road. If the condition of a vehicle is poor then it might not pass its MOT, and the new buyer will obviously have to foot the bill to put the car back on the road.
The general economic situation may also be a factor, especially in recent years. Buyers simply don’t have as much disposable income as they once did, and so it
becomes harder to resell cars and car prices might drop. To stay ahead of the game you might look online for a car price guide.