Depreciation

[st4]

In order that we should not "go on about" anything trivial...have you got a list of what you find acceptable to discuss on a car owners' forum? Please.

Pikeys, rusting vito's, cheap lease deals, C63's, Doncaster, RBS, and dogging all seem to be good topics.

 

[ChuckyYeager]

In order that we should not "go on about" anything trivial...have you got a list of what you find acceptable to discuss on a car owners' forum? Please.

I dont mind discussing depreciation but its the likes that go on about ''you must be mad to buy a new car'' and ''I bought a 25 year old car and I am smarter than the guy with a new car on his drive'' blah blah blah.

People that can afford these cars dont really care about depreciation!

 

[st4]

People that can afford these cars dont really care about depreciation!

Because they don't own them and I would say a good many of those wouldn't otherwise be able to afford them. They tend to be sold on a finance package where a predetermined amount (i.e. the final payment) is given that tells the punter what its going to be worth. They pay interest and the difference between the projected value of the car and its list price.

 

[230K]

Pikeys, rusting vito's, cheap lease deals, C63's, Doncaster, RBS, and dogging all seem to be good topics.

you forgot main bearings, manifolds and swirl flaps

230K

 

[ChuckyYeager]

Because they don't own them. They tend to be sold on a finance package where a predetermined amount (i.e. the final payment) is given that tells the punter what its going to be worth. They pay interest and the difference between the projected value of the car and its list price.

Can they afford the monthly payments? Yes

End of story!

 

[renault12ts]

 

[st4]

main bearings, manifolds and swirl flaps

230K

You forgot peeling lacquer, paint coming off when hosing a car, wheel bearings collapsing, main dealer swapping the wheels, crap gear changing, rip off pricing, two dealers being unable to fix a gearbox jolt problem and a shady/patchy past.

 

[Deadhead]

I've never done the sums but because most Mercs and BMWs are bought with extras which are effectively worth not very much come trade-in time I always thought that in practice real-world depreciation was pretty close to that for most other cars.

 

[del320]

Why do people go on and on about depreciation

Most people that buy cars do not plan to make a profit on them. They buy them to use. Do you expect to get anything back when you buy a shirt from M&S? Do you expect to get anything back when you spend money on that carribean cruise?

Why indeed.

Even property can't be guaranteed to produce a profit - so what are you expecting?

Folk whine on about depreciation like they're being conned or are forced into some contract and not made aware of the small print (see Hestor thread)

For those who want to place their own hard-earned on a brand new motor - live with it!

For the rest of us with some sense, depreciation doesn't exist. It is a continuum of upgrading, renewal and replacement like any other purchase - shirts, camaeras, hi-fi, cookers etc.

When sad cases like me chance upon a car I like and wish to keep, depreciation simply doesn't exist. I've got a £45k car i bought for £12k ten years ago and could now be worth £4k.

So what does that prove?

F*** all I should think!

My first car - a Renault 5 cost all of £800. 36 years later and C£60k down, I've got a Merc worth bugger all.

Am I bovvered?

Serious investors like my B-I-L and sister buy a knock-down Peploe and in less than ten years see a eight-fold appreciation to somewhere around £150k.

Better bet than a secondhand E-Class, eh?

Having ranted on, I recall eons ago studying Parkers, in which I discovered that if you bought a Citroën 2CV @ £700 and a Citroën CX @ £2600, then X years later, you'd get a lot more for the 2CV.

Plus ça change!

 

[Deleted member 11979]

Bought a new 08 reg Volvo C30 1.6SE when Volvo were doing they're huge discounts for £14k complete with leather, sunroof, blue teeth and metallic paint as extras. Since then have averaged 51mpg, car has covered 80k and only fault has been a DPF that needed a premature change which they covered under warranty. Car worth 7 to 7.5k and feels fresh. Depreciation so far around 2k a year which is less than £200 a month. We're well chuffed but it's immaterial as we'll keep it for a few more years yet.

Another vote for C6, great car and would love one apart from the fuel "economy" of the 2.7. They must have actively tried to make it as bad as it is, had the same problem with a 407 2.7 Coupe that drank like a fish.

 

[artyman]

Hmm I wonder what the depreciation is on my first digital camera

 

[blue gnome123]

Hi

As you can see from my tag I've had plenty of big Citroens. With three v6 Xm. I did look at getting a C6 rather than my S211 but the ride on the C6 isn't as good as an XM (the reason for getting a big citroen!). The C5 rides better. Plus as plenty of other posters have said the 2.7 isn't as good as the 3.0. However try to find a 3.0 diesel C6 and you'll see that C6 depreciation isn't what you might think.

A 2008 S211 320cdi must be one of the last diesels made without a DPF - that's one of the reasons why I bought mine. Over on the Honda forum (I have a 2.4 petrol new shape Mk VIII tourer) they are already complaining about £980 that Honda dealers are talking about for replacing DPF.

 

[steve333]

FTC Leasing (www.ftcleasing.co.uk) have a 2008 C6 at £10,950.

More interestingly, their site is worth a look for late model very high spec Mercs, with massive depreciation.

^ I bought my cls500 from them in 2010,great prices on big v8/v12 mb's(mine had depreciated 44k in 21/2 years & 19k miles at that time).

 

[steve333]

Why do people go on and on about depreciation

Most people that buy cars do not plan to make a profit on them. They buy them to use. Do you expect to get anything back when you buy a shirt from M&S? Do you expect to get anything back when you spend money on that carribean cruise?

I do less than 4000miles a year and would conviniently get buy using a zip car every weekend but I just wanted a brand new car. I can afford the monthly payments so why not enjoy a new car afterall I aint taking nothing with me whe I leave this world.

^Depreciation is something i factor in when changing cars,i already have a good idea what the car will be worth come trade in time so it's something that i'm not overly bothered about.

 

[bolide]

The VAT isn't lost, it's merely 'paid'. As a business you might be able to reclaim it but you'd still have to charge it again when you sold it (VAT qualifying). You don't lose anything by paying the VAT.

You lose about 17% (the VAT proportion of the total price) immediately. AFAIK VAT isn't reclaimable on cars, only on commercials

So the notional first year depreciation figure will be distorted hugely by the VAT element

Nick Froome

 

[st13phil]

So a 4 year old base spec car is worth more than the O/p says the top spec one is worth after 1 year.

Thanks

Correction DM - What Car? was the source, I was the mesenger

It cracks me up how 5 minutes of fun can turn into a slanging match within a few hours.

For the record, although I've never owned a Citroen I always respected their engineering prowess - well, at least until they became part of the PSA group when things went down hill somewhat. But I guess that's irrelevant.

 

[Dieselman]

Correction DM - What Car? was the source, I was the mesenger

It's better to present fact, rather than fiction.

 

[renault12ts]

You lose about 17% (the VAT proportion of the total price) immediately. AFAIK VAT isn't reclaimable on cars, only on commercials

So the notional first year depreciation figure will be distorted hugely by the VAT element

Nick Froome
the independent Mercedes Estate specialists

If I pay say £40000 inc. VAT for a car I don't care what proportion is the VAT. If I sell it (because it is much sought after) for £39000, then the depreciation is £1000. There is no immediate reduction to £32000...the price I get is the price someone is prepared to pay.

 

[Scott_F]

Rubbish.

Try to find one even three years old for £9k.

Just to help here are all the HDi up to 3 years old on Autotrader. The cheapest is 2009 and 56k miles for £13,900.
That is a 2.7, which listed at £33k new. 2.7 do drop in value because of the high RFL cost.

Lets take a realistic new sale price of ~£27k, now it's worth ~£13k which leaves a drop of £14k over 56,000 miles and just under 3 years.

looks like it's lost less than an E220Cdi to me.

Used CITROEN C6 Car for Sale - Auto Trader UK

That illustrates what people are hoping to get but not what sort of price they end up accepting in order to get a sale.

 

[artyman]

Depreciation,............ that's where the salesman looks at your present car, sucks his teeth and says not much demand for that model/colour/specification. Then when buying says we don't get may of these that's why they hold their price.