The cars which lose the least value over time are either the best in their class, highly sought after or rare.
 
According to a recent study, BMW's MINI  is currently the slowest depreciating car on sale in Nigeria because it is in high demand.

Ferrari, for example, always builds one less car than it believes it can sell, building 399 Enzos when it judged the market to be 400. The reason is to keep demand high.

How to avoid depreciation

Motor industry experts warn buyers to be careful while choosing a car. Don’t get wowed by discounts, they are often there for a reason. Think why a car may have had its price cut.

“Don’t buy a car if it’s just about to go out of production, it’ll soon be dated and out of favour. Buy a car which is fresh in showrooms and respected by the press and customers and it will retain its value for longer,” says an expert.

“Buy a diesel,” says another expert. “They’re more in demand as fuel prices rise. A car with lower running costs will depreciate more slowly because more people will want it.”

How to exploit depreciation

But the same rules can be used to take advantage of depreciation. Last of the line models may have a reduced value which compensates for a lower price.

Pay less in the first place, and your potential for losing more is reduced.

Nearly new cars can also be an intelligent buy. Franchised dealers often have the pick of nearly new cars, and they will almost always have a full service history, guarantee, warranty and low mileage.

Buying a nearly new car avoids much of the initial drop in value a vehicle suffers when it is driven off the forecourt by its first owner.

The worst depreciating cars

Expensive cars from popular manufacturers which aren’t known for building luxury cars often lose the most money.

These cars are not lacking in ability but there is a small market for them and buyers are less willing to pay an amount close to their initial sale price.

Expensive cars from volume manufacturers – you can hear them depreciate when they pull up beside you. Cars with large petrol engines and expensive maintenance bills are falling out of favour as fuel prices soar and many consumers aim to go green.

 Cars with the least depreciation

The experts describe an alternative but cost effective approach to beating depreciation.

“After buying an Alfa Romeo 164 3-litre V6 for N1.6 Million, I drove it for seven years and then had it scrapped, so it only cost me N250,000 per year in depreciation,” says the expert.

The key to beating depreciation

The key to beating depreciation is to research the cars you can afford, and check they are the best in their class and will be in popular demand for the foreseeable future.

If you buy a car fitting these criteria it should still be snapped up for a great price when you come to sell it.