Looking at a 3 year old car - how much do I stand to lose?

[msmith59]

Hi,

I'm looking at 3-4 year old examples of a couple of cars that meet my needs.

These being the Skoda Octavia VRS and the Kia Sportage GT line. I've taken into account cheaper servicing and running costs than prestige brands but still feel these cars have the sporty look and performance I'd like.

Looking at the market, I could spend £15-20k on one of these and probably plan to keep it for 3 years before swapping. I do less than 10k per year so the car won't be getting more than average mileage.

Any ideas what I may roughly lose on these models over the three year period? Or what model will lose most value over the term? I'd like it to be as cost effective as possible.

Thanks

[Carguy44]

Buy a cheaper car or don't swap so often if you want to reduce loses. Why would you need to change after just 3 years?

[dunc69]

If you buy now and sell in 3 years, you may lose more than average, as use prices are inflated and the market should re-balance itself in that time. But, if the market has corrected, the next car you buy will also be cheaper!

Of your choices, I’d take the Octavia vRS - the Mk3 is a very good car.

Edited by dunc69 on Monday 26th December 15:25

[Deep Thought]

msmith59 said:

Hi,

I'm looking at 3-4 year old examples of a couple of cars that meet my needs.

These being the Skoda Octavia VRS and the Kia Sportage GT line. I've taken into account cheaper servicing and running costs than prestige brands but still feel these cars have the sporty look and performance I'd like.

Looking at the market, I could spend £15-20k on one of these and probably plan to keep it for 3 years before swapping. I do less than 10k per year so the car won't be getting more than average mileage.

Any ideas what I may roughly lose on these models over the three year period? Or what model will lose most value over the term? I'd like it to be as cost effective as possible.

Thanks

I budget for a 50% loss every three years, and i think we're now at the point where used cars will depreciate from where they are now, rather than there be a big correction.

You could have a look at what "equivalent" 6 year old variants are being advertised for privately, subtract a little for negotiation and that will give you a rough guide.

[Carguy44]

That very much depends on whos opinion you listen to, some say that these higher used prices are here to stay, some think they might drop a touch and others think that prices are going to crash.

[Deep Thought]

Carguy44 said:

That very much depends on whos opinion you listen to, some say that these higher used prices are here to stay, some think they might drop a touch and others think that prices are going to crash.

We've been told theres a crash coming since Mar 2020. Like with Covid, the time has now come to accept where we are and move on.

Broadly speaking, cars depreciate 50% every 3 years, thats where i would be. I dont think that will be more than +/- £1,000 out

[ARHarh]

If you are worried about how much you might loose over 3 years then why not just PCP something at fixed costs so you know what it's going to cost or buy something older that will last you till you scrap it. Both will give you a fixed cost per year. Plus any fixing needed.

[Deep Thought]

ARHarh said:

If you are worried about how much you might loose over 3 years then why not just PCP something at fixed costs so you know what it's going to cost or buy something older that will last you till you scrap it. Both will give you a fixed cost per year. Plus any fixing needed.

I think the overall costs of PCP deals on a new car, rather than 3 year old cars, would be horrendously high by comparison.

[Alan16ac]

Can't comment on the losses, however the Skoda is the better car imo. The MQB platform cars are excellent. I have owned a Mk3 Octavia and loved it, and now have a Leon on the same platform. Lovely cars. Plus it's very easy to retrofit options on the MQB cars, so any optional extras you want, but can't find on a model you want, it's easy enough just to retrofit them.

Personally wouldn't buy a Sportage, I'm sure it's a good car but it won't drive as well as the Octavia. It's significantly smaller in the rear for passengers and has a smaller boot. Yet it will cost more to run and use more fuel. Have you sat in the rear of one? It's so uncomfortable. The seats are almost bolt upright. The rear of the Octavia is much more spacious and very comfy.

Edited by Alan16ac on Monday 26th December 13:57

[Carguy44]

Alan16ac said:

Can't comment on the losses, however the Skoda is the better car imo. The MQB platform cars are excellent. I owned a Mk3 Octavia and loved it, and now have a Leon on the same platform. Lovely cars.

Personally wouldn't buy a Sportage, sure it's a good car but it won't drive as well as the Octavia, its significantly smaller in the rear for passengers and has a much smaller boot. Yet it will cost more to run and use more fuel. Also have you sat in the rear of one? It's so uncomfortable. The seats are almost bolt upright. The rear of the Octavia is massive and very comfy.

It depends what you want the car for, the Kia has probably got a much smaller footprint which can be very useful. Also loading kids and things in is easier in a taller car imo

[AlwynMike]

Do your research on Dealer servicing costs if they are important to you.
My BMWs gave been cheaper to service than Wife's Skoda.
A friend went from Volkswagen to Mercedes and was amazed how much cheaper it was to service.

[ChrisH72]

Like DT I think a good rule of thumb is 50% in 3 years. That's what most of my cars have lost with 3 year changes being the average. Only exception is my current car but as we know things have been far from normal recently.

So if you buy one for 20k expect it to be worth 10k in 3 years. 15k now will likely be 7.5k so the less you spend the less you lose in general. Its guess work but I'd imagine 50% to be worst case so you could be pleasantly surprised when you come to sell. But then your next car will cost more so you're not really winning.

[msmith59]

Thanks for the replies.

Looks like if I stand to lose £7-9k over 3 years on a 3 year old car, I may as well wait for a good lease deal and do a 3 year lease with trouble free motoring.

[Deep Thought]

msmith59 said:

Thanks for the replies.

Looks like if I stand to lose £7-9k over 3 years on a 3 year old car, I may as well wait for a good lease deal and do a 3 year lease with trouble free motoring.

I think good lease deals are a thing of the past.

To better £9K over three years you'd be looking at something costing less than £219 a month on a 6+35 lease deal.

I dont think thats going to get you very much to be honest.