How long should i hold on to a new car before upgrading again

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daffydel

Guest
I am talking about this from a depreciation point of view. I understand trading up after year one is madness as the % depreciation is highest because VRt is built in to the price. Is there more of a trade up value at year 2 3 or 4
 
Depends on the milage. Usually most people change there cars after 3.
It's prob the best time. From the model you buy in the three year period you will see either a face lift model or a new model out but not both. You dont get into any major services costs. Year 2 and you might just be buying almost the same car your driving and by year 4 you have a model change and a face lift model so it works out very expensive.

If you buy new or second hand with a three year cycle in mind you should do fine.
 
Can depend on the car you're trading in too. It isn't always complete madness.

I renewed after 1 year several years ago because I was offered a very good trade in deal - less than 10% depreciation + extras the trade in didn't have (alloys, sun roof, electrics). Car was otherwise identical VW Golf.
 
A car will lose less of its value as it gets older, because its worth less. Applying that logic you should drive it into the ground... Other factors to consider; most dealers are only interested in 2,3,4 year old cars when trading in against new. A new model car may hit the older's values. Mileage and major service intervals are a factor. Depending on the model once a car hits 60K or 80K miles, major parts may need to be replaced (timing belt is sooner). Alot of people won't look at a car, irrespective of model or condition if it has 100K+
 
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