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

[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.

[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.

[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

[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.

[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