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Transport can be a major expense for many companies,especially when cars have to be provided for both managerial and sale staff. __1
As a result, it's important to keep a close eye at the many costs __2
associated with company cars and how these different costs compare.
The moment a new car is driven away from the showroom,its value will drop as much as 12 percent. This is what is __3
known as depreciation and is the largest single cost to the buyer of a new vehicle. Depreciation is the highest in the __4
first two years of a vehicle's life: at the end of that period a car could be worth just the third of its brand new price. __5
Although the rate of depreciation decreases as time goes by, it remains a major cost factor, as around 85 percent of company vehicles are brought brandly new. __6
However, it is important to know that some cars depreciate much more than others——regardless of price. This is often __7
to do with rarity and prestige value. The more common the car, the more quickly, in general, it loses vaule. Exported __8
models, which are restricted in number, can hold their value better than those are produced domestically and widely available. __9
In the same way, depreciation on a new model of a particular make may be low for the first few years after their launch. __10
This happened when diesel cars were first introduced. They depreciated more slowly when they were rarely seen; now that they are relatively common, this is no longer true.
