Which cars depreciate the most?
We know this will be the question on everyone's lips at this point. However, it is an ever-changing picture due to social and economical factors that constantly redefine driving standards and trends. However, in recent years SUV's are shown to maintain their value well due to their growing popularity. This is alongside hatchbacks and those within the luxury, sport and executive bracket which historically depreciate at a slower rate.
Why is depreciation important when leasing?
Depreciation levels are outlined clearly for you when you are considering a lease as the rates you will see are based on covering the depreciation costs of the vehicle over a set term. For this reason, leasing can provide the opportunity to drive away a better car at a better price than other funding methods and without the initial investment of buying outright. In many cases, you will find that you will pay less for a lease than you would if you bought a car and then sold it after the same period because depreciation levels are agreed at the outset. You also don't have to worry about the hassle of selling the car after a few years.
However, because your lease fee will be dependent on the value of the car at the end of your term, you will be obliged to agree to a set mileage at the outset of your agreement. If you exceed this figure you will face penalisations when you hand the car back. There is also the understanding that general wear and tear is expected during normal driving over a lease term. But to going beyond these agreed levels will also incur extra charges at the end of your lease to cover repairs.
If this has got you interested in leasing you can keep up to date with our best lease deals by checking out our special offers, or use our lease comparison search tool to scope out your best suited option.