Three-year used bargains

With cars, the itch comes every three years, not seven! As soon as a motor reaches its third birthday, fleet companies replace them, finance deals end and used buyers emerge. With prices roughly half what they were new, these vehicles represent excellent value.

Jeff Paterson, chief car editor of Glass’s Guide, explains: “Three years is the most sought-after age for a used car. For drivers who can’t afford to purchase new, a motor of this age meets their affordability level.” And the good news is a host of cars will hit their third birthdays in 2008. Here are the anniversaries you won’t want to miss...

Why three is the magic number
Of all the milestones in a car’s life, the third birthday is the most important. But for a buyer, it’s the point where there’s less pricing uncertainty.

Jeff Paterson explains: “A motor is roughly half its cost new after three years. Depreciation has sorted itself by then. The value of an average car drops by 40 per cent in the first year, slowing to 60 per cent in the third, so prices are a lot more stable.”

Meanwhile, Paterson warns not to expect diesel bargains, even though that market grew by 13 per cent in 2005. “We’ll see more available, but demand will also rise.” He estimates only buyers who do more than 10,000 miles a year will benefit from paying a £700 average premium over a petrol equivalent.

Extra Info

“For the average buyer who can’t afford to purchase a new car, a motor that has reached its third birthday meets their affordability level. By that time the worst of the depreciation has usually passed and it’s roughly half its cost new.” Jeff Paterson, Glass’s Guide