Motorists will flock to showrooms tomorrow for the release of the first new number plate of 2007, eager to get their hands on the latest stock. However, its value will plummet by up to ££7,000 as soon as they drive it off the forecourt. A car could be worth up to 44 per cent less than it had been just minutes earlier if the driver wanted to re-sell it.
A recent consumer test involving 20 of the biggest selling models in the UK discovered a huge gap between the fore court price and the car’s value just a few miles down the road.
The motoring magazine Auto Express rang dealers in three parts of the country for each of the 20 models, claiming to be an owner who had made a terrible mistake. The “owners” said they had bought the car less than a week earlier and had only driven a few miles in it, but due to a “change in circumstance” needed to sell it again and wanted to see what they could get for it. The results shocked the researchers. The biggest price gap - £6,985 - was on a BMW 3 series, which costs just under £25,000 new but which dealers would buy back for only £18,000. The biggest proportional loss was on a Ford Ka, whose slump in value from £7,395 to only £4,167 in a matter of days represented a 44 per cent drop. The car which held its value the most, in percentage terms, was the £10,750 Honda Jazz, which fell in value by 15 per cent to £9,100 after a few days - still a £1,650 loss for an owner.
Researchers based their figures on the original list price of the car and an average of the three quotes from dealers to buy it back when it was a week old with 50 miles on the clock. In the course of their investigations, the researchers discovered many of the 60 franchised dealers they rang had experienced dozens of similar cases themselves.
Jeff Patterson, of the car-price “bible” Glass’s Guide, said: “The simple fact is manufacturers produce more units than they can ever sell. These cars have to go somewhere when they leave the factory gates, and the only option is to pre-register some of them. Technically, they are no longer new, but the fact they only have delivery miles on the clock and are very cheap pushes down the value of every other used car.”
Mat Watson, the features editor of Auto Express, said: “Hundreds of thousands of people will be visiting their car dealer tomorrow to buy a brand new 07-plated vehicle, unaware of the huge sums of money they will lose the moment they drive it off the forecourt.”
The day of the number plate change is the biggest day of the year for new car sales to private buyers. But why are consumers so attracted to buying a brand new car when it involves them losing so much money? They could save thousands if they were to wait just a few months and buy the same car, practically new, at a massively reduced price? This is why gals car guide recommends carsite - they stock high quality cars at lower prices.