Can you avoid depreciation?
Discussion
I was working out how much my Range Rover cost me a month in depreciation and its £1250. Its my everyday car and I do 17K a year. Few business miles. Just used for Dad taxi services etc. I have other cars for fun. What car could I replace it with that doesn't depreciate? I thought of a newish defender 110, had two before and loved them. The last one a 2015 I sold for more than I paid for it. Could I live with 17k miles a year in it though? Any ideas?
Edited by Jonny TVR on Wednesday 11th April 17:13
Jonny TVR said:
I was working out how much my Range Rover cost me a month in depreciation and its £1250. Its my everyday car and I do 17K a year. Few business miles. Just used for Dad taxi services etc. I have other cars for fun. What car could I replace it with that doesn't depreciate? I thought of a newish defender 110, had two before and loved them. The last one a 2015 I sold for more than I paid for it. Could I live with 17k miles a year in it though? Any ideas?
I don't think I would fancy that many miles in a Defender, elbow space and lack of crash protection two things. How about a Tesla. Edited by Jonny TVR on Wednesday 11th April 17:13
The simple answer is a car at the bottom of its depreciation curve.
There are two problems with Defenders, firstly their values I expect have only bounced in recent months due to the shock effect from the end of their production, I suspect they will lower again in the future - not massively but they won't stay as buoyant as they are now. That's not proven, just my two pennies worth.
The second problem and more relevant is that a Defender is not a good mile muncher, no matter how many shiny bits are bolted to them they are still utter turds to drive. I absolutely love them, but they're utter turds and you will probably have a shock if you're used to a RR. Finding a comfortable driving position is difficult, they're noisy, they have the turning circle of a supertanker and they have a habit of rusting underneath. The clutch is heavy and gives you a sore leg quickly in traffic, tight car parks are a challenge even for a 90 and your right arm has nowhere to go.
That being said, I'd have another in a heartbeat, just not for 17k miles a year.
If I needed a family bus without depreciation issues, I'd be in an old school Merc, Rover 75 Tourer or old V70.
There are two problems with Defenders, firstly their values I expect have only bounced in recent months due to the shock effect from the end of their production, I suspect they will lower again in the future - not massively but they won't stay as buoyant as they are now. That's not proven, just my two pennies worth.
The second problem and more relevant is that a Defender is not a good mile muncher, no matter how many shiny bits are bolted to them they are still utter turds to drive. I absolutely love them, but they're utter turds and you will probably have a shock if you're used to a RR. Finding a comfortable driving position is difficult, they're noisy, they have the turning circle of a supertanker and they have a habit of rusting underneath. The clutch is heavy and gives you a sore leg quickly in traffic, tight car parks are a challenge even for a 90 and your right arm has nowhere to go.
That being said, I'd have another in a heartbeat, just not for 17k miles a year.
If I needed a family bus without depreciation issues, I'd be in an old school Merc, Rover 75 Tourer or old V70.
designforlife said:
Don't know about 4x4s, but my honda is appreciating nicely...worth about £1500 more than what i paid for it 18 months ago.
There are certainly cars out there that are stable/rising in value, but whether they meet your needs is another matter really.
How much have you spent in the meantime however...There are certainly cars out there that are stable/rising in value, but whether they meet your needs is another matter really.
Jonny TVR said:
I thought of a newish defender 110 - Could I live with 17k miles a year in it though? Any ideas?
Coming from a FFRR, no chance.Edited by Jonny TVR on Wednesday 11th April 17:13
My RR will be four in September and I'm currently trying to figure out what to do. Warranty costs £1k/year and servicing is bound to start getting even more expensive. Based on current trade in values - circa £30/35k - I reckon it has cost £1150/month in depreciation, yikes. BUT from here on in the depreciation starts to flatten quite considerably. I do 12k/year so in another three years it'll be seven years old and have 90k on the clock, should be worth £10k.
Essentially, in a round about and slight convoluted way, I'm recommending you keep the RR and enjoy it.
Machines depreciate because they wear out and the new models are almost always better. No matter what machine you buy, one day it's value will be based on weight. Unless you can find a vehicle that's impervious to wear, it will depreciate. It will also depend on how the car was bought and how long you run it for, if you buy new and replace every 3 years, you're always at the steepest part of the depreciation curve.
Your car is a very expensive motor to run and there are cheaper cars available, which you may or may not like. I try to buy cars at about 3-5 years old from a main dealer and run them into the ground, so by the time I'm done with them they are worthless, but I've had 10 or more years use out of them, so the depreciation on my current car should be at the most £900/yr. You won't like it and possibly, like most on here, look down your nose at it, but you monthly depreciation figure knocks a big hole in my annual motoring costs. You pay your money and take your choice.
Your car is a very expensive motor to run and there are cheaper cars available, which you may or may not like. I try to buy cars at about 3-5 years old from a main dealer and run them into the ground, so by the time I'm done with them they are worthless, but I've had 10 or more years use out of them, so the depreciation on my current car should be at the most £900/yr. You won't like it and possibly, like most on here, look down your nose at it, but you monthly depreciation figure knocks a big hole in my annual motoring costs. You pay your money and take your choice.
lost in espace said:
Jonny TVR said:
I was working out how much my Range Rover cost me a month in depreciation and its £1250. Its my everyday car and I do 17K a year. Few business miles. Just used for Dad taxi services etc. I have other cars for fun. What car could I replace it with that doesn't depreciate? I thought of a newish defender 110, had two before and loved them. The last one a 2015 I sold for more than I paid for it. Could I live with 17k miles a year in it though? Any ideas?
elbow space Edited by Jonny TVR on Wednesday 11th April 17:13
I think you can avoid depreciation if you choose the right vehicles or lessen it by buying at the bottom of the curve e.g 3-5 year old cars Vs brand new.
I generally run cheaper cars and usually sell for the same or more than I paid. My mate has had some very serious cars and always ends up quids in.
I generally run cheaper cars and usually sell for the same or more than I paid. My mate has had some very serious cars and always ends up quids in.
Jonny TVR said:
I was working out how much my Range Rover cost me a month in depreciation and its £1250. Its my everyday car and I do 17K a year. Few business miles. Just used for Dad taxi services etc. I have other cars for fun. What car could I replace it with that doesn't depreciate?
If you can afford it why worry? Jonny TVR said:
I was working out how much my Range Rover cost me a month in depreciation and its £1250. Its my everyday car and I do 17K a year. Few business miles. Just used for Dad taxi services etc.
Get the kids to take actual taxis?Edited by Jonny TVR on Wednesday 11th April 17:13
lord trumpton said:
rustfalia said:
Drive Blind said:
the only vehicles i've seen used regularly and not depreciate massively are the vw t4/t5 buses
I bought a T4 in the winter for 4k. Used it everyday and sold it last weekend for 7.5k.
Something I aimed to do and managed to achieve.
Bit more money towards a house deposit anyway
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