Although buying new cars seems to be becoming less popular, with more people opting for second-hand vehicles whether they are seeking car finance or not, Brits have been warned to guard against depreciation in value this week.

According to a new report, over 400,000 people will buy a vehicle with the new ‘56’ number plates this September. Most of those who do will use a car loan, and because of this they must be aware of how their car depreciated in value and take every measure to prevent it.

As soon as a new car is driven away from the forecourt, it begins to depreciate in value. However, some cars will depreciate more than others. A recent study by American Express reveals that even cars at the upper end of expense can depreciate as much as ten per cent during their first year.

American Express highlighted the need to chose the right type of insurance . Their insurance services marketing manager, Joanne Field, reportedly said: A new car – whatever the make or model – is a significant investment for any driver. With … inclusive cover, new car owners need not worry about the ever increasing depreciation once off the forecourt that a new car creates.