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When considering a loan for a new car, a lot of drivers tend to take the safe option and go out and buy a typical 'run of the mill' make and model. Whilst some people choose to do this as they have bought a car from the same manufacturer before, many others take this option as they believe that they cannot afford a more luxurious model.

However, for around an extra few dollars or pounds per month, you could be driving around in a top of the range Mercedes, an outlandish Rolls-Royce or even a Ferrari and yet, you could still be better off over the long term - the reason being one of the difference of depreciation in your car's value over time if you choose a bog standard model.

As soon as you drive any new car away from the showroom, it starts depreciating in value and the value of most cars dips the most sharply within the first 3 years. The key is to determine which cars will hold on to their value the longest and this is why the luxury, top of the range models fare well. There is usually a long waiting list for the top end of the luxury car market and, whilst supply can't always keep up with demand, this also indicates that there are not many models being manufactured so used values are likely to hold up well.

In general, the slowest depreciators in value come from the prestige manufacturers such as Mercedes, BMW and Audi. Not only have these brands got a long-held reputation amongst car buyers but they also tend to fare better when it comes to wear and tear so this means they're far more attractive than, say, a high-spec equivalent from a lower priced manufacturer.

In fact, if you compare, say, Ford with Mercedes and some of their top of the range models, it's been shown that after 3 years typical ownership, the Mercedes will have lost far less of its value than the Ford in percentage terms of its original price.

Classic cars fare even better. It might be a 57 Chevy, an early Dodge or a Triumph. It doesn't have to be a luxury brand but these kinds of collectors' cars depreciate the least if they are kept in good condition and this is why they have a lot in common with the luxury end of the market.

So, before you head off to the showroom to buy your next compact or sedan, think long and hard as, for just a hundred pounds or so each month, you could be driving off in a brand new Mercedes or even a Rolls Royce and, when it comes to reselling, you could still end up having the last laugh and being better off to boot.