Some cars can lose three-quarters of their value after being on the road for three years, according to a survey by the British the Consumers' Association's Which? magazine. Even cars that hold their value are unlikely to be worth as much as half their original price after 36 months, according to the survey. Michael McAleer reports
Industry analysts here say the figures tally with Irish depreciation rates, although the actual rates for particular cars will differ.
The survey showed that among superminis, the Mini Cooper 1.6 16v was the best performer - holding 49 per cent of its value over three years. The BMW Compact 1.8, which lost 47 per cent, was the best performer in the medium-sized sector.
At luxury level, the Opel Omega 2.6 V6 Elite was the poorest in holding value, losing 75 per cent. The Mercedes S-class 280 and the Lexus GS300 3.0 were the best, keeping 50 per cent of value. Best performers among large cars were the Mercedes S-class 180 Elegance and the Lexus IS200 2.0SE - their figure was 47 per cent.
While a 75 per cent depreciation after three years may be recorded in the Irish market, analysts are quick to stress that the marques and models will differ from Britain. Pat Timmons, editor of the Car Sales Guide, the Irish industry's used car valuation service, says that, while certain cars here may mirror British depreciation figures, they will not necessarily be the same cars as in Britain. Within model ranges, he says, depreciation can vary significantly depending on engine size and specification.
"Generally in Ireland, the highest depreciation is in the 2.5-litre to 3-litre market, where that engine size is not the main market for that model," says Timmons. "With cars such as Mercedes or BMW, where the larger engines are their main markets, high depreciation is not such an issue."