At the time of going to press, at least one financial institution was offering the automotive equivalent of the so-called access bond , which allowed clients to pay more than the requisite minimum into their loan accounts and withdraw the excess as cash when required. One finance house offers a scheme aimed at providing tax-orientated customers with a combination of a linked interest rate and fixed or capped monthly repayments. In effect, it minimises the effect of upward rate movements to the end of the contract, yet allows clients to benefit from downward rate movements immediately. If peace of mind and a regular, budgetable payment each month are important to you, then this option makes sense. Think of it as medical aid for your car.
Some models depreciate faster than others, depending on the market forces of supply and demand.
Luxury cars, which generally earn a higher profit margin, tend to show the biggest drop. It s not fair, but that s the way it works. By the same token, if buyers are scrambling to obtain a certain model, its value rises. If you can afford it, the best time to change is about every three years, depending on the interest rate and annual mileage. However, much depends on your tax situation.