Mercedes depreciation

[uumode]

My car C200 AMG line premium plus
has a OTR list price of £40k with options - it's just about a month old
(I did not pay that)

Out of curiosity I used auto traders free valuation tool

And it gives a private sale evaluation of just £28,150
A drop of £12k in one month

I plan to keep for 15 years so doesn't matter to me, but was surprised at the depreciation for a new model W205. I know the level of options hit the valuation harder.

 

[bobmushroom]

And I guess that's why many people don't pay anywhere near the Otr price

 

[Liquid silver]

On all new cars you will loose the VAT in your case 20% in the first 5 minutes. Thankfully there are enough buyers of new cars to keep the second hand market buoyant.

 

[StuartK]

My car C200 AMG line premium plus
has a OTR list price of £40k with options - it's just about a month old
(I did not pay that)

Out of curiosity I used auto traders free valuation tool

And it gives a private sale evaluation of just £28,150
A drop of £12k in one month

I plan to keep for 15 years so doesn't matter to me, but was surprised at the depreciation for a new model W205. I know the level of options hit the valuation harder.

MB Birmingham were doing C200d AMG line with premium pack brand new unregistered for £30k. I know because my father in law was having one then changed his mind and bought a 520d.

 

[Rory]

On all new cars you will loose the VAT in your case 20% in the first 5 minutes.

Why would you lose the VAT?

 

[uumode]

Sorry, I accidentally posted in news (on my phone). Can a mod move it to the appropriate category

 

[Bri]

With depreciation like that your as well buying a 3 year old Mercedes in as good as new condition with very low mileage for less than half price.
40 grand car like new for 20 grand or less, and get it from a dealer and you also get 12 mouth warranty.
Its a no brainier

 

[Deleted member 113659]

The high depreciation is why some people lease. 24/36/48 month lease sometimes works out less than what you'd loose buying the car and selling after same term. Won't effect you if you're keeping it a while.

Ant.

 

[KennyN]

With depreciation like that your as well buying a 3 year old Mercedes in as good as new condition with very low mileage for less than half price.
40 grand car like new for 20 grand or less, and get it from a dealer and you also get 12 mouth warranty.
Its a no brainier

That is exactly my thinking when I bought my CLS , 2010 Grand Edition with just 18k on the clock from a main dealer.

I paid £18.5k for it meaning a saving of £30k over the original base £48.5k new list price which is at least £830 pm depreciation - ouch.

Kenny

 

[developer]

This time round, for the first time ever, I bought a 9 month old car (instead of the usual 3ish years old).

It will suffer the most horrendous deprecation.

I rationalised it using the OFI methodology .

 

[Liquid silver]

Why would you lose the VAT?

Because it is a tax imposed by the government and not part of the manufactures pricing structure. Plus it now becomes a second hand car once registered. Take any "new" car that has been registered to a dealer and see how much you are offered.

 

[uumode]

I normally buy my cars at a third of their list price
at about 3 or 4 years old, and keep 11-12.5 years

Audi 90 2.3 5 cylinder £6500 over 11 years
£545 a year cost/depreciation

Mercedes E240 V6 £11,000 over 12.5 years
Approx £840 a year cost/depreciation (£70pm)

Figured I'd saved a bit over the years on cars to justify, indulge in new and choose the exact options I wanted. Was thinking of a used Porsche Panamera, Maserati Ghibli or Tesla S but still expensive and the W205 was much better equipped for less money.

In that (arguably weird) context the new W205 seemed good value.

 

[uumode]

This time round, for the first time ever, I bought a 9 month old car (instead of the usual 3ish years old).

It will suffer the most horrendous deprecation.

I rationalised it using the OFI methodology .

OFI? (sorry I'm a bit slow with acronyms)

 

[StuartK]

The best Merc to buy if you fancy a bit of depreciation is the good old S65 coupe. A sure fire way to blow £150k in 3 years

 

[Codger49]

Oh F*** It ??

 

[MancMike]

I think you need to change your cars more often.

 

[Liquid silver]

Why would you lose the VAT?

The best Merc to buy if you fancy a bit of depreciation is the good old S65 coupe. A sure fire way to blow £150k in 3 years

Can't come quick enough

 

[tromppost]

I normally buy my cars at a third of their list price
at about 3 or 4 years old, and keep 11-12.5 years

Audi 90 2.3 5 cylinder £6500 over 11 years
£545 a year cost/depreciation

Mercedes E240 V6 £11,000 over 12.5 years
Approx £840 a year cost/depreciation (£70pm)

Figured I'd saved a bit over the years on cars to justify, indulge in new and choose the exact options I wanted. Was thinking of a used Porsche Panamera, Maserati Ghibli or Tesla S but still expensive and the W205 was much better equipped for less money.

In that (arguably weird) context the new W205 seemed good value.

I somehow doubt the Porsche Panamera, Maserati Ghibli or Tesla S will last 11 years !!

 

[Rory]

Because it is a tax imposed by the government and not part of the manufactures pricing structure. Plus it now becomes a second hand car once registered. Take any "new" car that has been registered to a dealer and see how much you are offered.

It depends on how much in demand that car is - some could be worth more (hence they guy who got £35K out of a Porsche dealer the other day).

Cars are sold to the public inclusive of VAT - you don't talk about a £30K nett, £36K gross, car - it's just a £36K car.

The VAT stays in the price and declines at the same rate the nett price does. That's why used cars are generally sold under the VAT margin scheme, where the dealer only pays VAT on the difference between his buy and sell price. His buy price still contains 20% VAT.

Now it might be the price drops by 20% when it's driven off the forecourt - some drop more, some less. But it's nothing to do with VAT.

 

[markjay]

When you drive off the forecourt, the price dropps immediately to the value of the difference between the price the dealer sells cars and the price they buy cars, if this makes sense.

Try buying Euro or US Dollars at the money changers and then sell them back immediately - see what happens...