We look at ten great ways to minimise the impact of depreciation if you’re buying a new or used car.

Depreciation represents the difference between the price you paid for a car and the price it is worth now, aside from mileage and wear and tear.

So what can you do to keep that value as high as possible?

Buy a used car

Some people like new cars because it’s great to be seen in the latest model, or because of a brand new feature of the car not available in older models.

But used cars over three years old present a good deal, as they have already suffered the worst effects of depreciation.

Read more of our great advice on avoiding depreciation now.

Buy a Mini

Car values obey the laws of supply and demand. Cars in high demand retain much more of their value than cars which are more readily available.

According to a study by automotive experts EurotaxGlass’s BMW’s Mini is the car which retains the most of its value - 66 per cent over three years. The star supermini’s popularity has ensured its resale price remains high.

Close behind are the Honda Jazz 1.4 DSi and the Porsche Boxster, which both keep 62 per cent of their value.

Choose a good colour

A car is a very personal possession. You want to be able to buy a car in exactly the colour you want. The downside of having unusual taste is you may find the car more difficult to sell.

Black is the most popular colour in the UK, taking up 25 per cent of the market, and silver is a close second.

Buy in these colours and avoid garish paintjobs and you’ll maximise your chances of getting a good deal when it comes to selling.
However there are cars which, if they are in an a colour associated with their particular model, will hold their values better - for example a Nissan 350Z in sunset orange or a Subaru Impreza in ‘WR Blue Mica’.

Buy a classic car

Classic cars kept in good condition hold more of their value. In fact, classic cars become more desirable with age, so the value could actually increase.

But classic cars are still subject to fashion and market forces. Searches on this site for the Audi Quattro for example rose in popularity when the BBC series Ashes To Ashes was on TV, but now values are back to their original levels.

You may also save on tax. Owners of cars registered before January 1 1973 pay no road tax.

The downside of owning a classic car is they are more likely to have mechanical problems and break down.

Get a longer warranty

There are lots of reasons to shop around for the best deals, and warranties are one of them.

There are some great deals around at the moment, not least from Kia, which is offering a SEVEN year (or 100,000 mile) warranty on its Cee’d, pro_cee’d, Cee’d SW and Sportage models.

If you have a seven year warranty you’ll still have four years of it left and after three years, longer than the standard three years offered by some other manufacturers.

Hyundai also offer a five year, unlimited mileage warranty across their entire range.

For the latest information on great deals visit our new cars page.

Buy a supercar

There are some downsides to buying a supercar. They use a lot of fuel, and have high insurance and road tax costs.

But on a positive note, aside from putting a big fat smile on your face, they will keep a lot of their value.

For example Ferrari always builds one less car than it believes it can sell. When it built the Enzo it judged the market to be 400 but only built 399 Enzos - so demand was kept high.

“If you manage to buy a Ferrari F430 or an Audi R8 today you could sell it tomorrow and make £10k or £15k profit. People will do anything to get them.” says Used Car Roadshow TV host Jason Dawe earlier this year.

Buy a luxury car

Luxury cars such as BMW 7 Series or the Lexus S600h retain their value for the same reason supercars do - scarce supply and high demand. Their popularity and scarcity mean their resale value will always be high.

Keep a full service history

A full service history is just what it sounds. It’s a record of what you’ve had done to the car. It’s a transparent way of letting the buyer know what they’re getting.

If the buyer can see you’ve looked after your motor, they’ll be more likely to pay the price you’re looking for. Address any problems as soon as they happen.

Look after your car

Buyers will pay more money for a car which has been looked after.

Clean your car regularly - inside and out. A two to three-year-old car which has been looked after can be worth as much as 40 per cent more than a car which is in bad condition.

It also helps to keep your car in a garage - being exposed to the elements can affect its exterior.