Many motorists are not considering future depreciation when buying a new car, which may prove expensive, warns BMW.
With the new car registration due on September 1st, BMW Financial Services is advising motorists to be pay more attention to the future depreciation of their new car.
According to the car manufacturer, over a third of motorists would not look into the future value of their new car when making a purchase.
Given that depreciation is one of the most expensive aspects of car ownership these figures are perhaps surprising.
It does seem, however, that car buyers do pay attention to adding value to their vehicle by customising it with optional extras, particularly if they think that the extras would help the car retain its value in future years.
Fitting tracker systems, specifying leather interiors and ordering sunroofs are the most popular customisation, however not all will add value, explains Joe Pattinson, General Manager, Marketing at BMW Financial Services:
“As with certain improvements to a home, improvements to a vehicle can make a big difference when it comes to selling it on. And yet as our research findings have shown, there is a significant amount of misunderstanding about what may enhance a car’s future value, and what will not.”
“For example, many people thought a tracker system would most enhance a car’s future possible value. In reality, while the enhanced security offered by a tracker system may mean lower insurance premiums, a car fitted with a tracker will not attract a higher resale price than a car without. In contrast, many people felt an electric sunroof would least enhance a car’s resale value, whereas for many cars a panoramic glass roof will have a significant positive impact on its resale price. Motorists did however correctly identify that leather interiors are likely to add to a car’s future value.”