996 resale value. 27% drop in 9 months from new!
Discussion
Hi,
Just thought i'd check if I am going mad or whether a 27% drop is correct for 9 months of ownership on a 996.
So I have paid my deposit for a new 997 and the dealer wanted to know what I am doing with my 996. I said sell it, either now or when I take delivery of my 997. They said they would be interested in taking the car as there are no new cars coming through so they will have to make their money on pre-reg stock, so they gave me a price take take the car off me now.
So this is the dealer I bought the car off in the 1st place.
It is a 53 plate 996 C2 Coupe, Basalt black metallic, with a list price of £66K so with quite a few options on the car.
They have offered me £48K for the car.
So that is a drop of £18,000 in only 9 months from new, me being the 1st owner. In % terms, this is a 27% drop in the price.
I thought Porsches only loose up to 30% in 3 years, not 27% in 9 months.
To this end, is this correct or is the dealer taking the p**s???
Stu
Just thought i'd check if I am going mad or whether a 27% drop is correct for 9 months of ownership on a 996.
So I have paid my deposit for a new 997 and the dealer wanted to know what I am doing with my 996. I said sell it, either now or when I take delivery of my 997. They said they would be interested in taking the car as there are no new cars coming through so they will have to make their money on pre-reg stock, so they gave me a price take take the car off me now.
So this is the dealer I bought the car off in the 1st place.
It is a 53 plate 996 C2 Coupe, Basalt black metallic, with a list price of £66K so with quite a few options on the car.
They have offered me £48K for the car.
So that is a drop of £18,000 in only 9 months from new, me being the 1st owner. In % terms, this is a 27% drop in the price.
I thought Porsches only loose up to 30% in 3 years, not 27% in 9 months.
To this end, is this correct or is the dealer taking the p**s???
Stu
Sounds like a lowish bid,,,I think you would get between £50-52k on a private sale, if you can find a private buyer with this ammount of money to spend.
The 997 is due in september and many buyers will want the new model, which can only hurt the late registered examples of the 996.
Either jump before it gets worse, or keep the car and use it for a couple more years and the rapid initial depreciation curve will level out.
I do not mean to sound like a smartar5e, but the anticipation of such depreciation is why i sold my 996 last year......at least you are driving a fantastic car if that is any comfort.
The 997 is due in september and many buyers will want the new model, which can only hurt the late registered examples of the 996.
Either jump before it gets worse, or keep the car and use it for a couple more years and the rapid initial depreciation curve will level out.
I do not mean to sound like a smartar5e, but the anticipation of such depreciation is why i sold my 996 last year......at least you are driving a fantastic car if that is any comfort.
Ouch that is painfull !
It annoys me when car dealers talk about 'really low depreciation' for their products. They use their own retail figures to calculate the depreciation spread, not retail vs. trade in figures. So when they buy your 48k C2 and then retail it for 58k, they can then talk about ‘just 13% depreciation’ !!!
For 2+ year old cars dealers normally allow about 15-20% gross margin. Look at what similar 53 reg cars are retailing for (58k+) and take 15% off to see what a fair bid for your car would be. They allow up to 20% Gross if the car needs a lot of prep, but as your is almost new I wouldnt think they could justify any more than 15%.
I recently sold my Boxster S - I called many OPCs and I had bids that varied from 24,500 to 27,250 - thats a pretty big variation. Get a copy of the Sunday Times and look in the Porsche Wanter section - tons of advertisers there who want your car. Also do a search by each OPC (go the the Porsche web site) for thier current stock of 996 C2s. Call the ones with the lowest stock as they will want your car for sure due to the 997 coming out soon and.
Finally try asking them for a Sale or Return agreement - you normally get more that way. Some of the independants also offer SOR - try Joel at rsjsportscars.co.uk.
It annoys me when car dealers talk about 'really low depreciation' for their products. They use their own retail figures to calculate the depreciation spread, not retail vs. trade in figures. So when they buy your 48k C2 and then retail it for 58k, they can then talk about ‘just 13% depreciation’ !!!
For 2+ year old cars dealers normally allow about 15-20% gross margin. Look at what similar 53 reg cars are retailing for (58k+) and take 15% off to see what a fair bid for your car would be. They allow up to 20% Gross if the car needs a lot of prep, but as your is almost new I wouldnt think they could justify any more than 15%.
I recently sold my Boxster S - I called many OPCs and I had bids that varied from 24,500 to 27,250 - thats a pretty big variation. Get a copy of the Sunday Times and look in the Porsche Wanter section - tons of advertisers there who want your car. Also do a search by each OPC (go the the Porsche web site) for thier current stock of 996 C2s. Call the ones with the lowest stock as they will want your car for sure due to the 997 coming out soon and.
Finally try asking them for a Sale or Return agreement - you normally get more that way. Some of the independants also offer SOR - try Joel at rsjsportscars.co.uk.
Simple fact is, that supply is freeing up on 996 as everyone braces their self for the 997.
I think I'm correct in saying Porsche dealers are on about 15% margins on new cars so they are hardley likely to give you more than what the 'cost' price is to them, deduct 9mths wear and build in a £6k margin
and there you go 29% up in smoke!
Hence your £66k car new becomes £48k trade and back upto £54k retail
offering joe public a useful saving on new
>> Edited by mustard on Tuesday 8th June 19:44
I think I'm correct in saying Porsche dealers are on about 15% margins on new cars so they are hardley likely to give you more than what the 'cost' price is to them, deduct 9mths wear and build in a £6k margin
and there you go 29% up in smoke! Hence your £66k car new becomes £48k trade and back upto £54k retail
offering joe public a useful saving on new >> Edited by mustard on Tuesday 8th June 19:44
Actually, if you think about it, using a car for 9 months from new is about as uneconomic as it comes. Conversely now, depreciation for the next 2 – 3 years will be pretty shallow. Selling a late model about to be updated is actually bad timing. I’m not sure you can blame the motor suppliers who are no more than whores to the market.
The trick is to get your order in early for the new model, and also order it’s replacement, (maybe it’s with another manufacturer,) and dispose pretty soon after delivery. This way, skipping from one new model to another, you might enjoy minimal depreciation but also variety.
That, or put an order in for the ‘C4S’ replacement and enjoy the 996 for another full year? I don’t think VAT has anything to do with it.
The trick is to get your order in early for the new model, and also order it’s replacement, (maybe it’s with another manufacturer,) and dispose pretty soon after delivery. This way, skipping from one new model to another, you might enjoy minimal depreciation but also variety.
That, or put an order in for the ‘C4S’ replacement and enjoy the 996 for another full year? I don’t think VAT has anything to do with it.
£48k on a car thats £56k new and is approaching a year old is hardly in the toilet. That is about 13% which is pretty low.
If you had spent it on a Tuscan R then firstly nobody would have wanted to bid and secondly you would have probably done well to get anything close to 40k
I always try to limit my extras as I feel that if you stick 10k worth of extras on a car you cant really grumble when you dont get much of the extra money back.
Bennno
john m said:
I don’t think VAT has anything to do with it.
Actually VAT accounts for most of it, assume selling price new was £66k, dealer probably had £6k margin leaving £60k paid by dealer to Porsche Cars, this amount nominally includes a non recoverable amount of VAT calculated on the basic price, roughly £51,000 x 17.5% = roughly £60k. So as you drive out the door you lose almost £9k in VAT, OTR charges, First reg fee etc. So your £66k less £6k margin less £9k now equals £51k. Now drive it 9 months and deduct for that, voila = £48k buy in + £1k for warranty [if req] + £1500 for prep + £4k minimum margin = Retail selling of £54.5k
It hurts but thats how main stream dealers live I'm afraid.
In a low inflation society we must have depreciation or else we require inflation to balance new against used in the market
Allan
VAT has nothing to do with it IMO.
If a new car costs £60K OTR (including VAT etc) then thats the price of a new car. Used cars values are simply a factor of supply and demand with their value determined by market forces. Used cars values are an expression of the cost new and availability. If there is a 2 year wait for a new car with few used examples available they may trade over list so the arguement about VAT being lost when the car leaves the showroom doesn't hold water.
If I have 5 gallons of optimax at a race circuit that I don't need I don't sell it at £1 because its lost the value of the duty and VAT.
If a new car costs £60K OTR (including VAT etc) then thats the price of a new car. Used cars values are simply a factor of supply and demand with their value determined by market forces. Used cars values are an expression of the cost new and availability. If there is a 2 year wait for a new car with few used examples available they may trade over list so the arguement about VAT being lost when the car leaves the showroom doesn't hold water.
If I have 5 gallons of optimax at a race circuit that I don't need I don't sell it at £1 because its lost the value of the duty and VAT.
Try selling it on EBAY.
Costs are minimal and if you don't get any bids above your bottom limit then start looking at other sources.
Dealer's are creaming it with the new model due asap, you'll probably see it on the forecourt for around £3k under what you paid in the first place.
Your not in any hurry by the sounds of it
Costs are minimal and if you don't get any bids above your bottom limit then start looking at other sources.
Dealer's are creaming it with the new model due asap, you'll probably see it on the forecourt for around £3k under what you paid in the first place.
Your not in any hurry by the sounds of it
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