Trade Me data shows petrol cars depreciating faster

Recent data from Trade Me reveals that petrol cars are depreciating at a faster rate compared to similar models from a decade ago. Money correspondent Susan Edmonds highlights that while diesel vehicles are holding their value better, hybrid cars remain stable due to increased demand. The findings suggest a significant shift in consumer preferences, influenced by the rising costs of new vehicles and the growing popularity of electric cars.

Experts, including Terry Collins from the AA, attribute this trend to the decreasing prices of new cars equipped with modern features, including electric vehicles like Teslas. As more consumers consider the running costs of vehicles, electric options appear increasingly attractive, particularly in light of high fuel prices. This shift is reflected in the statistics, with battery electric and plug-in hybrid vehicles making up over a quarter of new light vehicle registrations in September, a notable increase from the previous year.

The momentum towards electric vehicles is further supported by consumer sentiment, with a significant percentage of non-electric car owners expressing intentions to purchase EVs or plug-in hybrids as their next vehicle. This trend indicates a broader transition towards electrification in the automotive market, driven by both economic factors and changing consumer preferences.

Your car may be dropping in value faster than it might have in the past. Trade Me has produced some new data showing petrol cars are potentially depreciating faster. Money correspondent Susan Edmunds spoke to Ingrid Hipkiss.