F-Type Depreciation

[Phil.]

Not a welcome subject I am sure. I think the V8S is one of top cars I have ever owned. Mine retailed at £87k when it was first registered on 1st May 14. I paid a lot less than retail for several reasons I won't disclose here. I've been offered this week £53k at 4,000 miles to trade against a £100k new vehicle. According to Autotrader I would get £57k max if I sold the V8S privately. The same age/spec F-Type are listed at £65k at Jag dealers. Apparently the depreciation is due to 'over supply' and the time taken to sell on. So for me, it's a great product but a financially lousy ownership proposition. I might buy mine back or similar model in a few years for £20k. What a performance bargain that would be!

Edited by Phil. on Friday 12th June 20:29

[esso]

Phil.....see my comments on this subject in the `Pre-owned F Types` thread I started. I think the F Type is a fantastic car and intend buying a pre-owned one but I believe the dealers are holding the prices too high currently, you only have to look and see how many pre-owned ones are for sale and how long they have been for sale, one V6 convertible I looked at 9 months ago is still for sale with the same Jaguar dealership.
I am looking at buying a V6S Coupe but am loathed to pay 55k+ that will be worth less than 30k in 18 months time.

[anonymous-user]

Phil. said:

Not a welcome subject I am sure. I think the V8S is one of top cars I have ever owned. Mine retailed at £87k when it was first registered on 1st May 14. I paid a lot less than retail for several reasons I won't disclose here. I've been offered this week £53k at 4,000 miles to trade against a £100k new vehicle. According to Autotrader I would get £57k max if I sold the V8S privately. The same age/spec F-Type are listed at £65k at Jag dealers. Apparently the depreciation is due to 'over supply' and the time taken to sell on. So for me, it's a great product but a financially lousy ownership proposition. I might buy mine back or similar model in a few years for £20k. What a performance bargain that would be!

Edited by anonymous-user on Friday 12th June 20:29

Surely the fact that you bought it at a discount told you it was going to depreciate heavily? If this sort of car can't command it's full retail when new, it isn't going to hold up well later.

Having said that, it's not much worse than a 911 I wouldn't think, in terms of retail to trade-in a year later?

[Phil.]

REALIST123 said:

Surely the fact that you bought it at a discount told you it was going to depreciate heavily? If this sort of car can't command it's full retail when new, it isn't going to hold up well later.

Having said that, it's not much worse than a 911 I wouldn't think, in terms of retail to trade-in a year later?

So £34k depreciation in the first year or 40% is to be expected and in line with Porsche ownership. I think not. It's expectionally bad for pretty much ant new car.

[Phil.]

esso said:

Phil.....see my comments on this subject in the `Pre-owned F Types` thread I started. I think the F Type is a fantastic car and intend buying a pre-owned one but I believe the dealers are holding the prices too high currently, you only have to look and see how many pre-owned ones are for sale and how long they have been for sale, one V6 convertible I looked at 9 months ago is still for sale with the same Jaguar dealership.
I am looking at buying a V6S Coupe but am loathed to pay 55k+ that will be worth less than 30k in 18 months time.

Wait 18 months and buy at £30k or less is my advice. Jag have some serious supply issues to resolve. Their product is a winner but their supply policy only rewards themselves in the short term which may unfortunately undermine their brand.

[anonymous-user]

The prices that dealers are advertising second hand cars for do seem highly optimistic, seeing as you can get £6000 saving on a new V6S coupe just be going through Drive The Deal.

I really liked the F-Type, but as it's a second car, i'm going to wait a year or two then see how the second hand market looks then, in the mean time i've bought a Lotus Evora S.

[volvos60s60]

Up until a few weeks ago, I was going to buy a XKR 5.0 convertible, around 4 years old. Looking a dealer prices for those, & also dealer prices for a 2 year old F Type V8S, there is about £15-£20K difference. For argument sake, I'll assume that there is around the same difference for trade prices as well. The gap will continue to narrow, until people realise how overpriced used XKRs currently are, & they will take a big correction.

I'm going to hold fire & try to pick up a 2013 F Type for around £45K privately in the early part of this winter. I think there is a sweet spot for used F Types where there is a lot of people wanting them in the more 'affordable' £30-£45K zone, & that they will stick in that zone until they get to at least 5 years old.

I attribute this high initial depreciation on the F Type to them being £15K overpriced when new, & market forces are reflecting this

Edited by volvos60s60 on Saturday 13th June 11:52

[Little Lofty]

The convertible was over supplied at launch and this had a major impact on used prices, it was/is also over priced. The coupe has done better, at least the V6 anyway, the R has dropped quite a bit. I lost just under 15% selling my V6S coupe after 1 year which I was reasonably pleased with. I lost roughly the same on my Cayman the year before. The 3 year balloon on the V6S coupe was set at 55%, which is around the same as a 911. The V8 convertible is the best used buy as it has lost the most.

[elementad]

Don't really think it's much different or worse than other high value premium marques. A pal of mine had an M6 costing in region of £80 odd k spec'd. 4 years later was offered £15k trade in by BMW. Now THATS bad.

V8 f types will be hit the hardest by virtue of initial cost. 3-4 years old I think £45k for the cheapest although that would probably represent higher mileage ones or the early press ones (swirltastic paintwork).
V6S 3-4 years old I imagine £40-45k
V6 I imagine £35-£40k

Like someone else mentioned. I think there will be a huge second hand market for these.

What's the point in thinking about it. Just enjoy it!

[SpeckledJim]

Phil. said:

REALIST123 said:

Surely the fact that you bought it at a discount told you it was going to depreciate heavily? If this sort of car can't command it's full retail when new, it isn't going to hold up well later.

Having said that, it's not much worse than a 911 I wouldn't think, in terms of retail to trade-in a year later?

So £34k depreciation in the first year or 40% is to be expected and in line with Porsche ownership. I think not. It's expectionally bad for pretty much ant new car.

Assuming you bought yours new, and as you said you paid a lot less than RRP, it has lost whatever you paid - 53k.

A lot less than £34k, no?

[Phil.]

SpeckledJim said:

Assuming you bought yours new, and as you said you paid a lot less than RRP, it has lost whatever you paid - 53k.

A lot less than £34k, no?

I was comparing Jag depreciation with other performance Marques. As an example a new GTR I bought a in 2012 at £70k RRP was traded for £50k 2 years later, and that's for a Nissan. Comparatively the F-Type RRP is a joke and plenty of people have paid it! Nearly new prices at Jag dealers are also a joke. People will simply stop buying them until Jag sort out their supply problem.

Someone above said V8S's will bottom out at £45k for 3-4 year old one. I'd bet on nearer £30k when I might be back because they are excellent cars.

[esso]

Phil.....can you clarify exactly what you mean by Jaguars `supply problem`?....if you mean its over supply then I would agree with that...after all there are currently 130 pre-owned ones for sale on PH alone.

[Phil.]

esso said:

Phil.....can you clarify exactly what you mean by Jaguars `supply problem`?....if you mean its over supply then I would agree with that...after all there are currently 130 pre-owned ones for sale on PH alone.

Esso, yes I mean over supply and it will take time for Jag to fix.

Had a slightly better trade offer today but if anyone wants an immaculate May 2014 4,000 mile V8S for £56k then feel free to pm me.

Edited by Phil. on Monday 15th June 10:22

[franki68]

Phil. said:

Esso, yes I mean over supply and it will take time for Jag to fix.

Had a slightly better trade offer today but if anyone wants an immaculate May 2014 4,000 mile V8S for £56k then feel free to pm me.

Edited by Phil. on Monday 15th June 10:22

Unfortunately it surely was to be expected with a new jag ? Likewise most big petrol engined bmws,mercs.

[Phil.]

franki68 said:

Unfortunately it surely was to be expected with a new jag ? Likewise most big petrol engined bmws,mercs.

It happens a lot less with Land Rover over recent years because they have controlled their UK supply of new vehicles to slightly behind market demand. Although this is now softening for some models, depreciation rates remain lower than other Marques. Being of the same Group I hoped that Jag would do the same, but they didn't.

[a8hex]

franki68 said:

Unfortunately it surely was to be expected with a new jag ? Likewise most big petrol engined bmws,mercs.

The more you sell new, the more there will be on the second hand market later on. If you sell a whole load at launch then that's likely to create a bump in supply further down the line when those new cars get traded.
The buyers of new cars and second hand cars tend to have different priorities, by their very nature, the buyers of second hand cars tend to be more budget concious. So the more expensive versions tend to get hit more than the cheaper more fuel efficient versions.

[jamieduff1981]

franki68 said:

Phil. said:

Esso, yes I mean over supply and it will take time for Jag to fix.

Had a slightly better trade offer today but if anyone wants an immaculate May 2014 4,000 mile V8S for £56k then feel free to pm me.

Edited by Phil. on Monday 15th June 10:22

Unfortunately it surely was to be expected with a new jag ? Likewise most big petrol engined bmws,mercs.

Selling from brand new at a year old and only 4000 miles has to be the absolute worst financial decision possible when it comes to car ownership surely? There is no way I can think of to waste money faster with cars than buy brand new, not use it for a year then trade it in. The actual trade in value is almost immaterial - this is financial kamikaze.

[Phil.]

jamieduff1981 said:

Selling from brand new at a year old and only 4000 miles has to be the absolute worst financial decision possible when it comes to car ownership surely? There is no way I can think of to waste money faster with cars than buy brand new, not use it for a year then trade it in. The actual trade in value is almost immaterial - this is financial kamikaze.

It is quite common for expensive high performance vehicles to be owned by more people in short time than other types of car. I can't disagree with your financial logic but buying/owning performance cars is what makes me happy, and I can afford it. I'm not complaining here about my loss, although I was slightly surprised at its magnitude, but seeking to ensure others, new and used buyers of F-Types don't have the same surprise. For example, if they buy a 14 plate V8S from a dealer today for £65k or thereabouts, it will be worth at least £10k less when they leave the forecourt and probably at least another £10k less a year later.

The reason for my surprise was because Jag oversupplied the F-Type to the UK market which is unfortunate because the product is excellent. I have mine out in the sunshine today and it's a hoot, especially the sound of the supercharged V8

[ftypical]

A Salesman at an official Porsche dealership once told me that the average time of ownership for the first owner of a new Porsche was just 18 months. Most of his customers apparently paid for them using a Lease.

[JetskiJezz]

Just stumbled onto this thread.

Last year I had the opportunity to spend the best part of a couple of weeks a couple of V6S convertibles (around the Swiss Alps) and absolutely fell in love with the car.
I'm sure there are many of us out there waiting for the price just to drop into the slightly more sensible price bracket, I've been keeping an eye on the used market for the last year now and prices of early car seems to have levelled a little bit although I'm sure it will continue to drop.

I'm sitting here patiently waiting for the prices to go below £40k which I'm assuming they will do by the end of this year.