Ludicrous car value depreciation we seem to happy to accept!
Discussion
Deep Thought said:
fflump said:
av185 said:
Buying then selling the right car at the right price at the right time is hugely influential on any depreciation or indeed any appreciation in value ££ and folks often get this so wrong .
Also never get too attached to a car as this often leads to major unacceptable depreciation often for those who want to avoid it and can invariably least afford it.
For most normal cars this is completely wrong. More often than not depreciation each year in ££ terms (not %) reduces each year you own a car. The idea that you can own a regular car and time its sale it to minimise depreciation is bizarre. Depreciation is by and large exponential and by the time you get to the point when a new model might affect your car's value (one way or another) you're so far down the curve as to make minimal difference.Also never get too attached to a car as this often leads to major unacceptable depreciation often for those who want to avoid it and can invariably least afford it.
Some examples of many just off the top of my head.
£15k....take the Golf R manual. Plenty of autos around as we know the market and auctions are full of them but not many manuals so rare which imo are the better car anyway and will hold their value much better.
£25k....your BMW M 240?? is holding up well DT!
£30k...M4. With the new marmite car with price increase too values of the old model should hold up well especially late run cars.
£60k...Carrera 997 GTS esp very rare manual 2wd or 981 GT4 also holding up well.
£75k...Carrera T. Only c250 manual UK cars last of the narrow body Carreras. Sold mine in 2019 and worth roughly the same money today.
Deep Thought said:
fflump said:
av185 said:
Buying then selling the right car at the right price at the right time is hugely influential on any depreciation or indeed any appreciation in value ££ and folks often get this so wrong .
Also never get too attached to a car as this often leads to major unacceptable depreciation often for those who want to avoid it and can invariably least afford it.
For most normal cars this is completely wrong. More often than not depreciation each year in ££ terms (not %) reduces each year you own a car. The idea that you can own a regular car and time its sale it to minimise depreciation is bizarre. Depreciation is by and large exponential and by the time you get to the point when a new model might affect your car's value (one way or another) you're so far down the curve as to make minimal difference.Also never get too attached to a car as this often leads to major unacceptable depreciation often for those who want to avoid it and can invariably least afford it.
Went to view this powder blue Mulsanne today.
It has £81500 in options meaning somebody paid £333000 for this car.
With only 14500 miles on the clock, and now available (with some defects) at an asking £89k; that’s £16.80/mile in depreciation alone.
Depreciation makes it a yes; colour makes it a no.
GordonGekko said:
Went to view this powder blue Mulsanne today.
It has £81500 in options meaning somebody paid £333000 for this car.
With only 14500 miles on the clock, and now available (with some defects) at an asking £89k; that’s £16.80/mile in depreciation alone.
Depreciation makes it a yes; colour makes it a no.
GordonGekko said:
Went to view this powder blue Mulsanne today.
It has £81500 in options meaning somebody paid £333000 for this car.
With only 14500 miles on the clock, and now available (with some defects) at an asking £89k; that’s £16.80/mile in depreciation alone.
Depreciation makes it a yes; colour makes it a no.
81k in options
Still - worth a punt with a decent wrap. Post pictures!
Edited by Royal Jelly on Friday 9th April 03:34
PeterArosa said:
Why ? Because there bought by fake watch wearing , orange tanned , plastic wife loving cretins like most of the knobs who frequent this site . More interested in lap times of their Beemers and crappy re engineered beetles due to their heads being completely vacuous and their morals smaller than their dicks
Just say it how you feel it Peter.Don't hold back there.
Love it !
fflump said:
Deep Thought said:
fflump said:
av185 said:
Buying then selling the right car at the right price at the right time is hugely influential on any depreciation or indeed any appreciation in value ££ and folks often get this so wrong .
Also never get too attached to a car as this often leads to major unacceptable depreciation often for those who want to avoid it and can invariably least afford it.
For most normal cars this is completely wrong. More often than not depreciation each year in ££ terms (not %) reduces each year you own a car. The idea that you can own a regular car and time its sale it to minimise depreciation is bizarre. Depreciation is by and large exponential and by the time you get to the point when a new model might affect your car's value (one way or another) you're so far down the curve as to make minimal difference.Also never get too attached to a car as this often leads to major unacceptable depreciation often for those who want to avoid it and can invariably least afford it.
Secondly, AV was offering an alternative to suffering massive losses on a new car by buying the right car at the right time and at the right price either new, nearly new or used.
New - thats tricky on the mass produced stuff but theres still cars out there that buck the trend that arent a fortune to buy.
Nearly new and used - yes as per AV's subsequent examples it can be done.
And its not with the benefit of hindsight its about taking a bit of time to buy the right car.
Edited by Deep Thought on Friday 9th April 07:57
It's not rocket science why the luxury limos and SUVs values drop through the floor - the market is very small. Once these cars are out of warranty even minor issues become major expense. Mate bought a 6 year old Vantage - loved it - but the servicing / maintenance costs were horrendous - chopped it in for newer (and under warranty) F type. It's impossible to work on these cars and and the complexity of the electronics etc is a concern. A colleague with an older (5 years) Audi recently got stung over £700 for a new CPU when the dash started playing silly buggers.
Also worth bearing in mind that many of the cars subject to huge depreciation will have been leased originally so the first owner really won't have been bothered by it anyway. It's ultimately a question of risk - as long as you have a fighting fund for potential gremlins there are bargains to be had.
Also worth bearing in mind that many of the cars subject to huge depreciation will have been leased originally so the first owner really won't have been bothered by it anyway. It's ultimately a question of risk - as long as you have a fighting fund for potential gremlins there are bargains to be had.
PeterArosa said:
Why ? Because there bought by fake watch wearing , orange tanned , plastic wife loving cretins like most of the knobs who frequent this site . More interested in lap times of their Beemers and crappy re engineered beetles due to their heads being completely vacuous and their morals smaller than their dicks
Someone call the anger management team , thanks .And it's they're .
Ferruccio Fan said:
PeterArosa said:
Why ? Because there bought by fake watch wearing , orange tanned , plastic wife loving cretins like most of the knobs who frequent this site . More interested in lap times of their Beemers and crappy re engineered beetles due to their heads being completely vacuous and their morals smaller than their dicks
Someone call the anger management team , thanks .And it's they're .
Wiltshire Lad said:
It's not rocket science why the luxury limos and SUVs values drop through the floor - the market is very small. Once these cars are out of warranty even minor issues become major expense. Mate bought a 6 year old Vantage - loved it - but the servicing / maintenance costs were horrendous - chopped it in for newer (and under warranty) F type. It's impossible to work on these cars and and the complexity of the electronics etc is a concern. A colleague with an older (5 years) Audi recently got stung over £700 for a new CPU when the dash started playing silly buggers.
Also worth bearing in mind that many of the cars subject to huge depreciation will have been leased originally so the first owner really won't have been bothered by it anyway. It's ultimately a question of risk - as long as you have a fighting fund for potential gremlins there are bargains to be had.
My last few cars have all been bought through an approved used scheme, either Audis or BMWs and I swap them soon after or before they’re out of warranty, I do a lot of miles and can’t afford the car to be off the road. I wouldn’t run anything older than 4 or 5 years old just for piece of mind.Also worth bearing in mind that many of the cars subject to huge depreciation will have been leased originally so the first owner really won't have been bothered by it anyway. It's ultimately a question of risk - as long as you have a fighting fund for potential gremlins there are bargains to be had.
fflump said:
cylinderfin said:
This subject is all a bit alien to me. All the cars and bikes I’ve owned in the last 30 years or so have been between 15 and 40 years old. Most of them go up in value by the time sell them!
Great contribution to a thread on depreciation. thanks.Gassing Station | Car Buying | Top of Page | What's New | My Stuff