Friday, July 1, 2022

Study Reveals New Zealand Has The Highest Car Depreciation

Everyone knows that buying a new car means it will lose value when you drive it out of the car dealership. It happens in most countries around the world but in some, the depreciation rate is very high when compared to others. A new study reveals that New Zealand has the highest depreciation rate in the world when buying a new car. New Zealand is almost two percent over the country in second place, with new cars losing more than half of the value.

A new car in New Zealand depreciates by 53.67 percent on the price the year after they were sold. In second place on the highest depreciation rate in the world is the United Kingdom at 51.90 percent. The UK is closely followed by the United States at 50.82 percent. At fourth place is Switzerland at 47.73 percent while Brazil is in fifth place at 46.78 percent.

Croatia continues the list at 46.56 percent while Netherlands is seventh at 46.22 percent. The last three are Australia at 45.34 percent, Norway at 44.87 percent and Argentina at 44.82 percent.

Highest and Lowest Rate

The study, which was done by online used car retailer Carspring, shows that New Zealand currently has the highest depreciation rate in the world. The company used data from hundreds of online retailers and stores in these countries. China had the lowest rate of the countries looked at by the study at 29.42 percent. The study was done to show how the depreciation rate in New Zealand compares to other countries.

In most countries, new cars lose value right after they are driven out of the dealership. In countries such as New Zealand, the depreciation rate is a lot higher with cars quickly losing a lot of value. The representatives of New Zealand’s car industry don’t think the numbers are all true, saying vehicles are not always sold for the recommended price. Motor Industry Association CEO David Crawford believes the depreciation rates are somewhere between the US and Australia, which appear on third and eighth place on the list.

 

Sean Farlow
University graduate with a bachelor's degree in business administration. Big fan of sports teams from South FL.
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