The current economic uncertainty, coupled with green taxes, are making car depreciation rates worse, according to motor industry analysts.

Analysts Eurotaxglasss have told the BBC the value of used cars will fall by an additional 8% this year.

Big family cars, which traditionally lose most value, and four-wheel drive vehicles are worst affected.

By comparison, say the experts, fuel efficient cars and smaller vehicles are holding their value better.

Slowdown

New cars automatically depreciate in value the moment they leave the garage forecourt.

The warning from Eurotaxglasss suggests that the increased cost of borrowing, stagnant house prices and the credit crunch have now spread to the car market.

But the experts are warning consumers to take account of resale values when purchasing a vehicle in order to avoid any nasty surprises down the line.

http://news.bbc.co.uk/1/hi/business/7293395.stm

So expect that shiny new 4X4 you paid £££ for to be worthless in a couple of years.

To be fair bigger cars have terrible depreciation anyway.  When I was looking I was tempted by a couple of Omegas, and a 700 series BMW.  Their 2nd hand value is terrible.  Same goes for most things over the size of a Mondeo/Vectra.  What did surprise me is that for the price of a Good 00/01 Vectra with lots of toys  I could only get a basic Corsa if I wanted to get something a bit smaller.  

To be fair bigger cars have terrible depreciation anyway.  When I was looking I was tempted by a couple of Omegas, and a 700 series BMW.  Their 2nd hand value is terrible.  Same goes for most things over the size of a Mondeo/Vectra.  What did surprise me is that for the price of a Good 00/01 Vectra with lots of toys  I could only get a basic Corsa if I wanted to get something a bit smaller.  

The 3 series is much better and holds its value well if you are buying new, otherwise go second hand and about three to five years old. Should still have plenty of life and be a lot cheaper.

Good thing I recently bought a diesel then.

Id save my dough and get an old diesel AX that does 100mpg and spend the remainder on a fast jap import