Car depreciation rates worsening

[dowtherz]

Some more good news!

http://news.bbc.co.uk/1/hi/business/7293395.stm

 

[television]

My enthusiasm for large cars started in 1953 when I bought a 2 liter Standard Vanguard, this was followed up with Humber super Snipes and Jaguar Mk 7s.
I bought then then cheap as no one wanted big cars (suez crisis) and I have had big cars ever since.

 

[Will]

Me too - I've never had small cars. Virtually all of my cars have been between 2-5 litres, with just the odd exception.

Will

 

[SilverSaloon]

pleased i sold the 7 Series when i did!

 

[Ted]

Quote
"But the experts are warning consumers to take account of resale values when purchasing a vehicle in order to avoid any nasty surprises down the line."

Oooh I needed an 'expert' to tell me that.

 

[richard]

Isnt this just a case of the press causing the depreciation. If the press didnt tell/scare everyone their cars were worth X% less, then they wouldnt be expecting the price they pay for a car to be X% less, and then the price would not drop suddently, and the whatever the 'market' correct price is will end up over time.



Richard

 

[Alfie]

Quote
"But the experts are warning consumers to take account of resale values when purchasing a vehicle in order to avoid any nasty surprises down the line."

Oooh I needed an 'expert' to tell me that.

Given the government and Red Ken are continually changing the taxation on motrorists (worsening it that is), who knows what the surprises down the line will be? They sure as sure wont be nice ones though!

 

[jeremytaylor]

Isnt this just a case of the press causing the depreciation. If the press didnt tell/scare everyone their cars were worth X% less, then they wouldnt be expecting the price they pay for a car to be X% less, and then the price would not drop suddently, and the whatever the 'market' correct price is will end up over time.



Richard

Exactly. It always makes me laugh when 1 week after the launch of a new car, 'experts' predict that said car will have a residual value of, say, 37% after 3 years.

Just where do they get their crystal balls from, because I would love to have foresight that good!

 

[Rory]

As far as I can tell, depreciation is *far* worse in the UK than almost anywhere else - anyone know why?

I think it's the twice yearly registration plate change. From a whole life environmental standpoint, surely chucking away cars at 8 yrs old is insane?

 

[crockers]

As far as I can tell, depreciation is *far* worse in the UK than almost anywhere else - anyone know why?

I think it's the twice yearly registration plate change. From a whole life environmental standpoint, surely chucking away cars at 8 yrs old is insane?

Agreed - we ought to be assigned a number plate when we buy our first car and it gets transferred to each car we then buy......

 

[imadoofus]

As far as I can tell, depreciation is *far* worse in the UK than almost anywhere else - anyone know why?

I think it's the twice yearly registration plate change. From a whole life environmental standpoint, surely chucking away cars at 8 yrs old is insane?

It's because we are so car-obsessed in the UK. The company car culture we have (which isn't really present in other countries to the same degree) means that cars are so much more of a status symbol here. People want the best, biggest and newest car they can get, and used cars (particularly old models, or pre-facelifts) drop sharply in value.

Elsewhere in the world people keep their own cars for longer, and treat them far more as tools than pets, which means they replace them when they wear out, not when the current model is facelifted.

The twice yearly registration plate change was introduced to try to even out the sale of new cars across the year. Yes, it has meant that according to the registration number, a car now looks old at six months, rather than a year as used to be the case.

Logic would suggest all the above shouldn't be so. There are a few threads on this forum from the past few days moaning about the cost of new cars in the UK. That would suggest everyone would prefer to buy used, but the fact is they don't.

 

[prprandall51]

Agreed. In both the UK and France people treat their car like they treat their horses. In France, a horse is a beast of burden and their cars are mere workhorses, too, used for transporting smelly cheeses and stuff around rutted fields. In Britain, we treat our horses like members of the family, and we do the same with our cars, too. We groom and wash them and wear funny, tight trousers... hang on this analogy has gone off the rails.

 

[Rory]

It's because we are so car-obsessed in the UK.

Nowhere could be more car obsessed than the US - yet a 3yr old car there is still worth 2/3 of its new price. Which is particularly bizzare as their new prices are way lower than ours - so the amount of actual money that they lose in depreciation is probably half of what we lose.

 

[imadoofus]

Nowhere could be more car obsessed than the US -

By what measure? I'm not saying you're wrong, I just wonder why you think it's so.

 

[hawk20]

Family cars lose their value quickest, while prestige brands such as BMW suffer the least price depreciation, a report claims.
The Alliance & Leicester report said family cars lost nearly two-thirds of their value after three years.
But compact executive cars and 4X4s had lost only a fraction of their value after one and three years.
The report suggests that buyers looking to keep total costs down pay a little extra for cars with high resale value.
"Careful buyers can make sure their investment continues to hold its worth over the years - factoring in depreciation is key to saving money in the long run," Andy Bayes, head of personal loans at Alliance & Leicester, said.
German car brands dominate the list of cars suffering the smallest loss in value.
The BMW 3 series and the Volkswagen Polo are both worth around 70% of their new price after three years.
The Mercedes C-Class is worth 86% of it is initial purchase price after one year according to the report.
http://news.bbc.co.uk/1/hi/business/3413395.stm

 

[dowtherz]

For me (and the approach I'm going to take buying my wife's Freelander 2) it's about:

1. Doing a huge amount of research before you select the car you are going to buy. You have to love it and know you are going to love it for a long time!
2. I've now decided to buy a recent used one from a franchised dealer with warranty remaining, that way I will avoid the initial "Hit" on depreciation.
3. Go for the best spec available - that will stop you looking at other models within the range thinking to "Upgrade" at a later date.

I am going to commit to keeping this car for at least 7 years - my previous record was 2 years

 

[television]

For me (and the approach I'm going to take buying my wife's Freelander 2) it's about:

1. Doing a huge amount of research before you select the car you are going to buy. You have to love it and know you are going to love it for a long time!
2. I've now decided to buy a recent used one from a franchised dealer with warranty remaining, that way I will avoid the initial "Hit" on depreciation.
3. Go for the best spec available - that will stop you looking at other models within the range thinking to "Upgrade" at a later date.

I am going to commit to keeping this car for at least 7 years - my previous record was 2 years

Good thinking Batman

My SL is the one of the first, but it has every known option, there is not another one the same for sale in the UK out of the 200 or so out there.
I am keeping until I cant drive any longer, so that is that

 

[Brett]

When you are trying to sell or trade-in a big engined car, "there is no demand for them sir, too expensive to run and maintain". When you are trying to buy one, "very rare. Not many of these about. Unstressed engine, effortless power, a bargain" etc etc.

Hey ho, I'll just have to run this one until the 63's become more affordable...then see above when I try sell mine/buy theirs!

 

[Rory]

Family cars lose their value quickest, while prestige brands such as BMW suffer the least price depreciation, a report claims.

..and that, of course, is utter rubbish.

And as for the C Class being 86% at 1 yr - I bought mine at 5mths old and it was under 2/3 of its new price. And that what I paid, not what the seller got for it.

 

[glojo]

I have read the criticism of the UK and would merely like to ask where Japan or South Korea stand on all this 'must have new' concept. I was under the impression that these countries were far worse than the UK?

regards
John