Mercedes depreciation

[Scooby_Doo]

God bless it. And bless those that buy new. Amen.

Without us where would you be ?

I've probably wasted thousands over the years, passed on some really well looked after cars with less than average mileage, but have I had the car that I wanted in the exact spec and colour that I really wanted, every time, was it worth it ? YEEEEEEEEEEEEEEEEEEEEEEEEES

Hands up though, my current C207 was ex demo and 6 months old and about £8500 less than new price (spec was as I would have liked it) because a new one was outside my budget(couldn't afford it) and the depreciation from new was OOOOOOOOOOOOOOOOOHHH.

 

[uumode]

For standard issue and normal trim levels, it's relatively easy to pick used cars up, just need to ensure the history, pedigree and condition are A grade. If looking out for specific options it makes it that more difficult.

As we entered the 1990's I was really really struggling to find an automatic transmission car with air conditioning, with all 4 electric windows. (in those days you'd only get the front electric).... and air conditioning was seen as an esoteric luxury as the UK 'never got that hot'. Rare as hens teeth and spent ages looking. I was particular on the colour, had to be silver.

Currently on Autotrader there isn't a car that matches my spec, and to have bespoke comes at a hefty premium, a premium I don't want to pay again until 2031!

 

[John Jones Jr]

Without us where would you be ?

Joking aside, it's very true.

I've had new privately , company new and ex-demos. All very nice if only average cars. But when it came to having a 7 Series, LS400 etc I'd have never experienced the pleasure if it wasn't someone else buying them new in the first place.

 

[Scooby_Doo]

For standard issue and normal trim levels, it's relatively easy to pick used cars up, just need to ensure the history, pedigree and condition are A grade. If looking out for specific options it makes it that more difficult.

It can be like looking in the proverbial haystack, you end up compromising on something,C207 had a few chips on front bumper, kerbed alloy (refurbished prior to delivery) but you have to offset these against the saving on new.
Currently there are approx' 400 2013 facelift C207s on Mercedes website, 150 have pano roof, 42 have pano roof and 19" alloys and there's only one in Iridium silver, as I said ,needle in haystack.

 

[BIRMA]

It can be like looking in the proverbial haystack, you end up compromising on something,C207 had a few chips on front bumper, kerbed alloy (refurbished prior to delivery) but you have to offset these against the saving on new.
Currently there are approx' 400 2013 facelift C207s on Mercedes website, 150 have pano roof, 42 have pano roof and 19" alloys and there's only one in Iridium silver, as I said ,needle in haystack.

It is possible to get your dream spec. though, when I was looking for a Boxster I wanted the manual gearbox, active suspension, PSE and Carbon Ceramic brakes. It took about 6 weeks and a flight from Southampton to Newcastle but I got the exact car I wanted it just requires a lot of searching/time and not giving up on your goal.

 

[The _Don]

Purchased my mb new in October 2012, would get back every penny i paid for it if i was to sell it today.

 

[TheFoX]

I bought my CLS last August for £24,000 from an independent dealer. Soon after, I typed my reg in to WeBuyAnyCar to get a rough evaluation, and was offered £19,000.

A few months on, and that figure now stands at £16,000.

The thing about depreciation is that it only affects you if you want to sell the vehicle. If you intend to keep the vehicle for any number of years, then its impact is very much reduced.

My CLS comes almost fully loaded. In fact, the only things the original owner didn't specify was the Radar Cruise Control and chilled seats. It has every other option on it, including heated rear seats, a rear sun blind, pneumatic lumbar support, a sun roof, Harman Kardon and other bells and whistles.

This is a long term purchase for me, and I'll expect to still own that car in five years time.

We all know that depreciation will affect almost everything we buy, so we factor in that loss automatically. The thing is we can never beat it. We could buy a 4k TV today, yet tomorrow that same set could be offered for half price, or a newer standard is introduced. Evolution means that what we buy is out of date the moment we take delivery.

If we were to wait for the ideal time to buy, we'd all be rich yet have no possessions. We have to make a decision that now is the right time to buy, either second hand or brand new. My CLS is four four years old, yet there are toys that are available on newer versions which aren't available on mine, such as the 9G gearbox. Still, if I had waited until a 9G version of the CLS was available in my price range, there'd be something even newer to try and tempt me to buy brand new, or make me wait longer.

 

[BIRMA]

Purchased my mb new in October 2012, would get back every penny i paid for it if i was to sell it today.

You've got me there how?

 

[Ted]

Depreciation and buying cars and bikes that I bought with my heart and not my head has probably cost me tens if not hundreds of thousands over the years.

The rest I just squandered.

Thank you George.

 

[gerrym]

I bought my CLS last August for £24,000 from an independent dealer. Soon after, I typed my reg in to WeBuyAnyCar to get a rough evaluation, and was offered £19,000.

A few months on, and that figure now stands at £16,000.

The thing about depreciation is that it only affects you if you want to sell the vehicle. If you intend to keep the vehicle for any number of years, then its impact is very much reduced.

My CLS comes almost fully loaded. In fact, the only things the original owner didn't specify was the Radar Cruise Control and chilled seats. It has every other option on it, including heated rear seats, a rear sun blind, pneumatic lumbar support, a sun roof, Harman Kardon and other bells and whistles.

This is a long term purchase for me, and I'll expect to still own that car in five years time.

We all know that depreciation will affect almost everything we buy, so we factor in that loss automatically. The thing is we can never beat it. We could buy a 4k TV today, yet tomorrow that same set could be offered for half price, or a newer standard is introduced. Evolution means that what we buy is out of date the moment we take delivery.

If we were to wait for the ideal time to buy, we'd all be rich yet have no possessions. We have to make a decision that now is the right time to buy, either second hand or brand new. My CLS is four four years old, yet there are toys that are available on newer versions which aren't available on mine, such as the 9G gearbox. Still, if I had waited until a 9G version of the CLS was available in my price range, there'd be something even newer to try and tempt me to buy brand new, or make me wait longer.

Brilliant post, wish I had been this sensible over the years, I reckon I would be mortgage free by now if I hadn't thought I needed the latest and greatest each time I purchased another car (just about every 12 months).


Cheers

Gerry

 

[developer]

Purchased my mb new in October 2012, would get back every penny i paid for it if i was to sell it today.

You've got me there how?

Pure BS.

 

[BIRMA]

Pure BS.

Serves me right.

 

[Rory]

My understanding of the situation is that the moment you drive a new car out of the showroom you loose the VAT content in the car price at the very least.

You might well lose 20% ish but it's nothing to do with VAT itself which stays in the car's value for ever, depreciating at the same rate as the ex-VAT value of the car. It's one of those sayings that seems to have stuck but has no basis in reality.

 

[stevehg]

My understanding of the situation is that the moment you drive a new car out of the showroom you loose the VAT content in the car price at the very least.

Your understanding is unfortunately wrong. VAT has nothing to do with it.

 

[BIRMA]

Your understanding is unfortunately wrong. VAT has nothing to do with it.

My point was that there is VAT in the purchase price of a new car which an individual cannot claim back in any way therefore I've always looked at it as a large lump of money that the individual pays/looses to the revenue.

 

[markjay]

My point was that there is VAT in the purchase price of a new car which an individual cannot claim back in any way therefore I've always looked at it as a large lump of money that the individual pays/looses to the revenue.

You do not lose it, you will recuperate it when you sell the car. Or rather the pro-rata element of the VAT. It's no different to anything else that you buy and then sell (unless you are a VAT registered trader).

 

[BIRMA]

You do not lose it, you will recuperate it when you sell the car. Or rather the pro-rata element of the VAT. It's no different to anything else that you buy and then sell (unless you are a VAT registered trader).

Of course, but I've always looked upon it as a big disincentive for buying a new car (admittedly somewhat misguided) whereas when I buy a new van I claim all of the VAT content back.

 

[Little Lofty]

I've heard loads of dealers muttering on about loosing the VAT on a new car. I've never fell for it and often what to tell them they are taking rubbish, but 90% of what most of them say is rubbish so it's nothing new My take on the initial loss is that you will loose the dealers profit margin as soon as you drive it away. You pay £20k for you new car, they paid £17k for it. There's no way they would buy it back for £17k as its not brand new anymore, so they'd give you £15k as they can buy another brand new one from the manufacturer for £17k. Obviously there are some exceptions to the rules, such as low volume cars with huge waiting lists that buck the trend and can sell for more than list, e.g the new Ford Mustang, vat has nothing to do with it.

 

[Little Lofty]

Even on commercials the vat doesn't have a great bearing. I bought a van 3 years ago for £13k + vat, I sold it after 2 years for £9500 + vat . Overall I only gained the vat on £3500.

 

[The _Don]

Serves me right.

Bs = Black Series.