Upgrading your old car

Factors to consider:

According to a recent study of old car slaes in the UK, sales of nearly new cars, under the age of 1 year old, have dropped significantly in the second quarter of 2006. Sales of nearly new cards had been growing sharply each year from 2001 until 2005. Last year this segment saw its first reversal as sales dipped 6.6%.
Analysts said two factors triggered the earlier boom in nearly new car sales. The first were a number of attractive packages from financiers & dealers. The second were a steady stream of nearly new cars making their way into the used car pol. Many nearly new cars were available at attractive discounts & depreciation benefits. So their sales growth went up sharply.
So what has now gone wrong ? Auto industry analysts say it has to do with the sharp increase in the demand for these nearly new cars. As the demand for nearly new cars have pushed up prices, that differential has been eaten up. So there are now fewer takers for these cars.
A good way to figure out if you are buying the right car in the segment of your choice is to check its used car value. If the model you are choosing has a vastly depreciated value in the marketplace it would be a good idea to stay away from it. After all, two or three years down the line you will have to trade it in for your next upgrade and a totally depreciated model will not fetch you very much by way of a down payment relief.
You should also take calls from company-validated pre-used car schemes seriously. A number of these calls now routinely turn up before the car completes its loan duration. while it's definitely a marketing effort on the part of the company to convince the customer to upgrade to the next level as soon as possible. Most B-segment cards depreciate so sharply beyond their 4-5 year loan tenures that their values experience a sharp dip in the after market. So the smart thing to do would be to take a check of the after market value of your car and trade it in just at the right time. Even if you want to move to another brand you can negotiate the best price for your old car as part of the rebate/benefit package on offer. That's the best way to negotiate a deal on your new car as well.