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The term depreciation in relation to cars typically refers to the amount of value the car loses in its first 3 years i.e. how much is the car worth now compared to when you bought it?
It's simple; buying a new car has never been a good investment, especially not if you go for an Alfa Romeo 159¢¦ but if you're looking at a Smart Car you might be on the right track!
Car values have gone into freefall over the past year, for example if in 2008 you bought a Saab 93 convertible (retail approx £29,000), you have already lost over £18,500 in depreciation.
Car manufacturers have done an excellent job in making new cars affordable through creative finance agreements, but scratch beneath the surface at the numbers and you'll be shocked at the loss you will make.
So what are the best and worst cars to buy new for depreciation over a few years?
Best
1. Smartcar for two (diesel or hybrid)
2. Mini One
3. Volkswagen Polo 1.2
4. VW Golf 2.0 diesel
5. Peugeot 307 diesel
Worst
1. Alfa Romeo 159
2. Audi A6 (all models)
3. BMW 5 series (all models)
4. Mercedes C class
5. VW Passat
