Depreciation – the financial killer

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I think everyone knows that when you drive your new car out of the showroom, you just lost at least 15 percent of the purchase price as you hit the street. And then by the end of 12 months ownership, you will have lost a great deal more.

The following figures were derived from UK statistics, but a similar analogy can be made for Thailand.

The best performers of 2010

Daihatsu Terios 14 percent loss

Kia Picanto 20 percent loss

Kia Rio 22 percent loss

Fiat 500 22 percent loss

Volkswagen Polo 22 percent loss

Mazda 2 23 percent loss

The biggest losers of 2010

Maybach 57 44 percent loss

Maybach 62 43 percent loss

M-Benz SL-Class AMG 40 percent loss

Bentley Brooklands 36 percent loss

Ferrari 612 34 percent loss

Lamborghini Gallardo 31 percent loss

Bentley Arnage 30 percent loss

Ferrari 599 GTB Coupe 28 percent loss

Rolls-Royce Phantom Saloon 27 percent loss

Rolls-Royce Phantom Drophead 26 percent loss

The Parker’s depreciation report is an annual investigation based on the average private resale values for 12 month old cars with 16,000 km on the clock. For example, in 2010 the Kia Picanto lost just £1,247. Because of the low purchase price the depreciation for the Kia Picanto was around 20 percent meaning that sellers will get around 80 percent of the original purchase price after a year of ownership. A general trend shown in the results is that average depreciation for the year was slightly higher, at 34 percent, compared to 2009’s 33 percent average.