I just tried looking up the reg of my next car - no surprise it doesn't show against anything because it will be delivered (and therefore registered) next week. But a website I stumbled across had me putting in my current car reg.
Slightly surprised they guesstimate the mileage - so grabbing data from the MOT website and then guessing from there. They are wrong of course but close ;-) But the bit that has me posting this is their estimation of value.
The car with extras 3 years ago was £31,165 and the estimate on there was £16,700. So quite a drop. The extras might be worth a bit more (about £6k of those) but probably not much. So this car has lost roughly £400/month in value :-)
If I took my allowance and got my own car (as brand new) I'd be pretty upset with that for depreciation. I know I have nothing to show for tax paid etc. but it works for me.
Next car is a little cheaper... But a £30+k Skoda all the same. Who'd have thought that was going to be even possible in the 80s!
Last edited by: rtj70 on Thu 12 Oct 17 at 18:44
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50% is about par for new cars isn't it?
What's your new car, a superb?
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>> 50% is about par for new cars isn't it?
It is. But when you think it's £16k it makes you wonder how you'd feel if your own money.
It is a Superb I get next week. Selected on leg room in the back that will help with my father in law getting in and out. I don't otherwise need such a large car. But clearing things from the garage/house will be handy :-) But a fair few extras. Extras would be fewer if I'd gone for a top end model but that is not available with a 1.4 turbo petrol engine.
I'd have had the A3 saloon again to be honest... but it was more expensive overall. Partly because the official CO2 emissions are now higher for the same car.
Last edited by: rtj70 on Thu 12 Oct 17 at 20:08
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>>50% is about par for new cars
The S Class I replaced the Phaeton with depreciated at £1,200 per month.
That's when I saw sense and now no longer buy new cars.
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I can't help thinking that there is a lot of margin in cars, given the discount that fleet buyers, leasing companies and hire car companies get.
When we see Dacia Dusters at £9995 and the equivalent Renault Capture is say £15k, it suggests that a fancy interior and badge costs £5k.
I know alloy wheels cost the manufacturers £25 each, so charging £1,200 for a set is just a rip, even after you add on stockholding and distribution costs.
Last edited by: zippy on Thu 12 Oct 17 at 21:12
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I think it is this fear of depreciation which is driving so many people to PCPs or Contract Hire. You are paying depreciation by a different name, but there is no fear/risk that it might be ruinous, whatever the future holds.
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List price might have been £31k, but if you’d bought it privately, I bet you wouldn’t have been so free and easy with the options ;)
So, assume a bit of restraint and it’s a £25k car with £2k of options. £27k before discount. You’d get 12% off as a private purchase I expect. So a little over £3k off. Now a £24k car. So three years down the line if it’s worth £16k I’d be okay with that. £8k loss over 36 months is only a little more than £220 a month. Probably only one service, and maybe even just one pair of tyres. Cheap motoring :)
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>> List price might have been £31k, but if you’d bought it privately, I bet you wouldn’t have been
>> so free and easy with the options ;)
I'd have got something else with some of the options as standard spec. The Audi A3 Saloon with 1.4 ACT engine and DSG was very good on BIK. My own money and BIK would not have been a consideration :-)
It has only had one service. And if it was not for a damaged front tyre (so swapped both) it would still be on the originals.
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And of course I'd not buy new if it was my money.
Far more options to my liking in the VAG group now there are more petrols again ;-)
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>> Far more options to my liking in the VAG group now there are more petrols
>> again ;-)
>>
Why only VAG?
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In 2004 we bought a new, base model Ka for my wife. There was a deal on at the time and the price we paid at our local Ford main dealer was £5495.
Almost exactly 6 years and 50,000 miles later she wrote it off. The insurance pay out was £2450.
So, £500 a year in depreciation. Cheap as it gets on a new car I'd have thought. Good little car too until she rolled it into a field.
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>> The insurance pay out was £2450.
Insurance pay outs are generally more than what you'd get selling it because they've got to factor in what it would cost to buy a replacement and put you back into the position you were already in. Had you tried trading it in, or selling it privately it would have been worth around a grand less.
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>> Insurance pay outs are generally more than what you'd get selling it because they've got
>> to factor in what it would cost to buy a replacement and put you back
>> into the position you were already in.
An old car of mine was written off after a minor bump some years ago, and I wondered why the settlement was a good couple of hundred pounds more than I would have achieved selling it privately.
Now I know.
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>> An old car of mine was written off after a minor bump some years ago,
>> and I wondered why the settlement was a good couple of hundred pounds more than
>> I would have achieved selling it privately.
>>
>> Now I know.
>>
Sister in laws car was written off by a 3rd party and their insurance was quite difficult. They offered a piffling amount for her Ford Focus at the time and we went round local garages finding loads of similar examples (trim, age, as near mileage as possible) and they were about £4k out on a car that was retailing for about £9k used. Even with a discount for cash we couldn't get close.
In the end we took photos of similar cars on the forecourts and written best prices from a few dealers and the insurance company eventually relented after threats of court.
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When it goes back next week, probably about 24,500. Depends how far I go at the weekend. Probably goes to auction - I am guessing in the north east because that's where the Skoda dealer is. I can't imagine the lease company transporting it too far from where it gets transported next week.
Last edited by: rtj70 on Fri 13 Oct 17 at 16:34
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Might have expected a little more than 50% over three years at that mileage though it would depend on whether it's a trade in, and what for, a private sale etc.
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Fixing the depreciation is a major reason on the two occasions we wanted a new car over the past 7yrs we leased.
I don't remember the figures for the C5 we leased from 2009-2012 but the Cactus that's just gone we had over 18mths the total lease cost for the period was about 50% of the depreciation alone for that car over the period.
Had we bought it with our savings we'd have been gutted at the loss.
At the opp end of the age scale by keeping its condition good my 5-series has depreciated at most about £400 over 3yrs 5mths... actually a local Polish dealer has hinted that in fact he may pay £500 or more than it cost me but that is yet to be tested so hot air for now. Does he ship them to Poland or do his countrymen in the UK like them I wonder??
Last edited by: Fenlander on Fri 13 Oct 17 at 21:17
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People from Eastern Europe and indeed Russians love "prestige" badges. A Scottish friend went to live and work in Moscow years ago, and eventually married a Russian girl. When they, in due course, moved back to the UK, they both needed to buy UK cars. He chose a BMW 3 series and suggested to his wife that a Golf might suit her. She was having none of it and insisted on a much older ( to fit their budget ) Mercedes C Class.
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>>.. actually a local Polish dealer has
>> hinted that in fact he may pay £500 or more than it cost me but
>> that is yet to be tested so hot air for now. Does he ship them
>> to Poland or do his countrymen in the UK like them I wonder??
>>
At the risk of thread drift, I often wondered why I see east European trucks taking oldish second hand cars down towards the Tunnel, apparently back to east Europe?
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>>> taking oldish second hand cars down towards the Tunnel, apparently back to east Europe?
Interesting. It was actually the dealer who sold us the CLK a few weeks back, two Polish guys in partnership.
As Mrs F was doing the bank transfer I mentioned my "old bus" and he checked is was a 6cyl diesel, an estate, leather interior, rust free, everything working and MOT'd. The answer was yes to all and he offered a fixed price way above that I'd expect from fellow BMW forum members if I punted it there. He said he could sell an old E39 of that spec all day long so I just assumed Poland.
>>>People from Eastern Europe and indeed Russians love "prestige" badges... a Golf might suit her. She was having none of it and insisted on a much older ( to fit their budget ) Mercedes C Class.
Hmmm seemingly some Cotswold girls think similarly. I did spend some time explaining to Mrs F how a Golf ideally suited her needs at this recent change... now the constraint of her car needing to be driveable/insurable for our girls has passed "having none of it" very much describes her reaction.
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Fenlander, you would also need to compare the depreciation assuming you bought the car as an ex demonstrator or pre reg.
no one would pay full list price for a car like that.
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>>>no one would pay full list price for a car like that.
Not entirely sure what you mean??
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What I was meaning was that unless I was speccing a car from scratch, many suppliers and models will have an endless list of pre reg models that you would buy at a huge discount rather than pay new retail price.
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>> What I was meaning was that unless I was speccing a car from scratch, many
>> suppliers and models will have an endless list of pre reg models that you would
>> buy at a huge discount rather than pay new retail price.
The new list price is for calculations only. I deprecated it by 17% before it was even built let alone left the dealer.
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Ahh understood. The figures for the lease vs depreciation I gave were based on the cheapest broker price I found to buy new for the model we had.... price was about £3k off list.
So it was a fair comparison and shows if you drop on a lease through a broker when the price is right it can be a hell of a deal.
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Car Depreciation - sooty123
