Depreciation

[st13phil]

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

Only if you're claiming something to be fact...

...and the E350 Cdi value is only being held up because it's a new model and the 350 engine is only recently available

And there was me and Mercedes-Benz thinking that the 350CDI engine had been available from launch in the W212 back in 2009

 

[John]

Rubbish.

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

Lol, not wasting time on this bull again - we've been here before.

I proved you wrong last time with all the figures but you threw a hissy fit and couldn't face reading it.

Not going through it all again - you can read that last thread...

Asking prices on Autotrader aren't necessarily what the car is sold for anyway - they are exactly that...

 

[Dieselman]

Asking prices on Autotrader aren't necessarily what the car is sold for anyway - they are exactly that...

As they are for any car...So?

Try to find a 1 year old C6 HDi for £9k.

 

[st4]

As they are for any car...So?

Try to find a 1 year old C6 HDi for £9k.

You won't, but what one is sold for may not be what it was bought for.

I went in regarding PX prices regarding the shed fairly recently .

One against an A6 and the other against an MB 220cdi 08 E class. Both prices were around £7000 which is really too little for what I want. However, I know my car would be sold on for nearer £11k.

had the PX been right, the shed would be a goner and I be posting, I've gone and bought this, bought, not leased

 

[Deleted member 11979]

Try to find a 1 year old C6 HDi for £9k.

Try finding one full stop!

With so few sold how can they accurately predict what they will change hands for.

 

[drdel]

Its the same old story - i.e be very careful with statistics. I bought my E350cdi for about £37k, pre-reg, delivery miles . A list price of £47 so if it has a residual of 45% the car will be worth about £23k after 3 years; according to the statistics ! That's about £5k per year which ain't that bad.

But we will see at the time!

 

[markjay]

Some 10 years ago (or more) I remember reading that the least depreciating car in the UK at the time was the E320CDI Estate - due to very high second hand demand it retained over 60% of original value after 3 years (from memory).

Also, there were some anomalies in the market, when the new Mini came out the waiting list was so long that you could apparently sell a one-year-old car for the same price you paid for it 12 months earlier... zero depreciation.

As for the other end of the market... My 2001 Vauxhall Omega CDX had a list price of £24k when registered new in June 2001, and was traded-in for a mere £1k in May 2008 in spite of having only 50k on the clock, stamped book, and four brand new Michelin tyres.

 

[RobertoMercini]

before I earnt enough to buy, service and insure a Mercedes each of the cars I bought lost a lot more in depreciation than they had the years before (comparatively) mainly due to the expected, and then subsequent actual downturn in the economy - presumably? More people were keeping hold of their cars and not 'trading up' to better models etc

That's what the dealers told me anyway..

24k to 1k in 3 years

 

[RobertoMercini]

7 years.. must get specs...

 

[markjay]

before I earnt enough to buy, service and insure a Mercedes each of the cars I bought lost a lot more in depreciation than they had the years before (comparatively) mainly due to the expected, and then subsequent actual downturn in the economy - presumably? More people were keeping hold of their cars and not 'trading up' to better models etc

That's what the dealers told me anyway..

24k to 1k in 3 years

7 years.. must get specs...

I bought this car - list £24 new - when it was 5 month old (November 2001) with 6k miles on the clock for £15. So by the time I sold it in 2008 it dropped £2k a year on average - which is not too bad really if you look at it this way.

 

[gIzzE]

Also, there were some anomalies in the market, when the new Mini came out the waiting list was so long that you could apparently sell a one-year-old car for the same price you paid for it 12 months earlier... zero depreciation.

That is true, I bought a Mini One D for £12k and sold it a year later for £12500.

05 plate.

 

[C240Sport97]

the only time I have ever made money on a car was on an SLK230K ..

I was one of the first to get an R170.

Had it 4 months, did about 1500 miles, and sold it for a £1.5k profit.

Wanted to hold on to it, but it was nuts as I already had a BMW 318iS coupe as a company car at that time, and a large mortgage.

 

[peterg1965]

Depreciation has been a killer for me and my frequent car changing habit. I have just decided to go for Personal Contract Hire on my next car and just ordered it. I have no worries about depreciation or residual values and, with the amazing deal I have got I am driving around in a £67000 car for 'just' £16000 over a two year period. That is less than the headline figure for 1 years depreciation on this particular car. Can't wait until I arrives!

 

[Deleted member 11979]

I have no worries about depreciation or residual values and, with the amazing deal I have got I am driving around in a £67000 car for 'just' £16000 over a two year period.

If I lost 16k in two years on a car I'd worry a lot! Hope you enjoy whatever it is when it arrives.

 

[peterg1965]

If I lost 16k in two years on a car I'd worry a lot! Hope you enjoy whatever it is when it arrives.

You can lose £16k in two years on some very modest metal, mondeos Galaxies, 5 series even a C Class.

 

[Dryce]

You can lose £16k in two years on some very modest metal, mondeos Galaxies, 5 series even a C Class.

I'm guessing your forthcoming metal isn't that modest ....

 

[peterg1965]

I'm guessing your forthcoming metal isn't that modest ....

I suppose it isn't, that's why it is a comparative bargain!

 

[markjay]

You can lose £16k in two years on some very modest metal, mondeos Galaxies, 5 series even a C Class.

Mondeos and Galaxys are bought in large numbers by fleets, and the buyers never paid anything close to the Retail RRP that is usually private buyers' starting point. In fact, I am told that some car rental companies actually turn a profit on the nearly-new cars they sell-off very quickly, precisely for that reason.

 

[billywhiz]

^^ that can be correct - especially on rental programme cars - the manufacturer will sell the car initally at a price ( this is normally 3 - 4k off the list price straigtaway - the rental companies pay a monthly depreciation amount and at the end of 6 months the manfacturer buy it back at an agreed price regardless of that depreciation in the 6 months.

Some they win and some they loose.

an average bread & butter rental mondeo has a monthly depreciation cost to the rental company of circa £180 per month - the manfacturer also pays back a monthly credit against the 6 month ownership period which can be circa £150 a month.

All tied in + rental revenue gained you can see why it's big bucks.

The costs that go against the rental companies is if the cars are returned prior to 6 months as there is no clawback on the manufacturer credits or if the car falls out of programme terms by way of excess mileage / age.

Most big rental companies obtain direct from manufacturer but if the purchase from dealer stock they also take a slice of the dealer margin as well >

= discount up front
= delaer margin recovery
= manufacturer credits

so yes they can virtually run these cars for nothing.

 

[markjay]

....so yes they can virtually run these cars for nothing.

And when these cars do get onto the market as nearly-new second hand cars, they further contribute to the depreciation of privately-owned vehicle of same model and year....