Motorists who own a second-hand car could be bumped in terms of their vehicle value by a major rule change set to land in the coming days. That's because new number plate rule changes which are set to land later this week could dramatically devalue used cars.
The DVLA's '24 number plate designs will be introduced for all vehicles registered after March 1, with owners of cars manufactured last year set to be hit the hardest. New analysis from webuyanycar shows that car values could fall by around 30 per cent after a year on the roads, with 2023 models set to plummet in price.
Head of technical services, Richard Evans, said: "Whilst demand is a key factor in determining a car’s value, the newer a car is, the higher value it initially has so another year of a car’s lifespan could affect a vehicle’s price. Our research showed that almost a quarter (23 percent) of drivers believe that new registration plates make second-hand cars more in demand.
- Read more: Drivers warned of car number plate rules that could land you with £1,000 fine and penalty points
"Research into used car values found that on average in 2023 cars only retained 70 percent of their value in the first year."
The Express reports that dealers can often sell 2023 models at budget prices to make room for new '24 plate models which are arriving thick and fast, while experts at LeaseLoco have warned that the biggest value drop usually occurs in the first year of a car's life. The firm stress that vehicles are likely to lose 15 to 35 per cent of their value over the first 12 months, with further decreases as time moves on.
Models into their third year will likely lose between 40 and 60 percent, with another 60 to 70 per cent reduction coming by year five - however, depreciation tends to slow after this point, wit steady drops as the vehicle ages. Experts say that cars which are eight to ten years old will have already lost 80 per cent of their value.
Evans, added: "But there are a few ways drivers who are thinking of selling their vehicle can retain as much value as possible. Regularly using a car for shorter journeys can ramp up the mileage, so travelling on foot where possible can help to keep it down.
"Keeping the car in a good working condition by having it serviced on a regular basis will also help to ensure the next owner has full confidence and an insight into any previous work or repairs the vehicle has had. Demand, availability, and the release of new number plates can all cause a car’s value to fluctuate in the market."
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