Be wise in choosing.

Byline: By Steve Hughes

This week's report on new car depreciation makes interesting reading, with some models losing an average of more than pounds 100 a day during the first six months. That adds up to a whopping pounds 20,000 in just half a year for the privilege of boasting the latest registration letter on a gas-guzzling monster that few people dare touch on the second-hand market.

The answer is to buy wisely in the first place, bearing in mind that depreciation is the single greatest factor in whole-life running costs.

You don't have to be a genius to know which models hold their value well, and which ones could bring you to the brink of premature bankruptcy.

For example, MINIs are just about the safest bet right now, because they are in such demand, whilst some rivals that are being shifted at knock-down prices will depreciate faster.

As a simple rule of thumb, you must pay top dollar for in-demand models that will hold their value well, and haggle hard for big discounts on unwanted models to compensate for the future losses that they will inevitably incur.

Latest reports suggest this could be a record year for new cars, with a projected figure well in excess of two and a half million. We can't all drive BMWs, Mercedes-Benz or Audis, so most of us have to settle for mainstream models such as Fords, Vauxhalls, Citroens or Nissans and some of the discounts currently being offered on them are huge.

The list price of a Nissan Almera 1.5 SE Extra is currently about pounds 11,700, yet the car is up for grabs at under pounds 10,000, saving pounds 1,700.

Fiat is having a hard time right now, so the cars are dirt cheap. In fact some of them are so ridiculously cheap that any future depreciation is largely irrelevant.

The new Stilo is actually a very good car, but is simply not selling well, so dealers who have registered thousands are now attempting to shift them with almost unbelievable discounts.

For example, a pre-registered Stilo 1.2 Active five-door with an original list price of pounds 11,100 can be snapped up for less than pounds 7,000, giving a saving of more than pounds 4,000, whilst the Fiat Punto is up for grabs with savings of pounds 1,600.

There is pounds 4,000 off the list price of the Vauxhall Zafira Energy, pounds 1,800 off the list price of the new face-lifted Vauxhall Corsa, pounds 1,700 off the Ford Fiesta Flame and pounds 3,000 off a new MG ZT, at pounds 12,995.

My own personal favourite deal is the Vauxhall Omega 2.2-litre CD automatic on an 03 plate with delivery miles only, at pounds 11,000, which is a saving of about pounds 10,000.

That is a large German-made luxury car that will last a lifetime for half price.

So, while this week's report on new car depreciation correctly states that some poor, uninformed souls will lose their shirts by signing up for duff deals, they only have themselves to blame.