Tuesday 27th January 2004

Used Car Data - Nonsense?

Row breaks out over depreciation claims. Renault get the hump.

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Renault are fuming about a report into car depreciation by the Alliance & Leicester published last week. According to the French manufacturer the report is flawed and innaccurate.

The Alliance & Leicester has confirmed inconsistencies and errors in the latest report and the Editor of What Car? Magazine, whose data was allegedly used as the basis, has distanced himself from the report saying it did not reflect What Car?’s own findings.

"The Alliance & Leicester should be ashamed that they continue to put their name to such badly researched and written garbage by a company that calls itself the "Centre for Economics and Business Research" but which obviously knows nothing about the motor industry or even the basics of how to do accurate research. This report should sit on the shelf in between Harry Potter and the Lord of the Rings as a example of a piece of fiction, " commented Graeme Holt, PR Manager for Renault UK.

The report was supposed to provide information to car buyers about how much new cars depreciated – or lost value - over the periods of one and three years and the Renault Laguna was named as the car depreciating the most after three years. Renault take issue with this as the Laguna on sale today is a completely different one to that on sale three years ago, making comparisons innappropriate.

Renault are also complaining that of the worst 10 cars listed in the report, seven of them have been replaced by a brand new model during the research period. They go on to point out that the report suggests 'best buys' of cars that are no longer in production.

Renault further pick apart the report: "The report boasts that MPV’s and 4x4s are best at keeping their value compared to other categories after three years. And the list of 4x4s they researched to come to this conclusion includes the Land Rover Freelander and the errr…..no that’s all folks. One the basis of one model the report makes its headline-grabbing claim bringing a new meaning to the word shallow ." So there!

Renault have also received support from Toyota and Nissan who also feel their models have been misrepresented.

[exint2]

Well my mother in law bought a top of the rang new shape Laguna "Sport Tourer" - List price £22K for £11650 when it was 11 months old and had done 13000 miles - so thats 47% deprecieation in a year - on thier new model........

Methinks they doth protest too much...

[AlpineAndy]

Renault are quite correct that the report is drivel. Having said that, the respected reports don't reflect much better on the Laguna. It's a nice car when new (all the bells and whistles), it just doesn't age very well.

[Ali_D]

You've got to say its a refreshing change that they are actually using strong terms rather than the usual bland statements that have been through a team of lawyers.

[craploginname]

I thought it was quite funny and the reason I bought a Honda instead of a Renault

[scaff]

I used to work for Renault UK and have worked with Mr Holt, it sounds like someone just recorded his initial reaction and turned it into the press release.

Does show how things have changed within Renault/Nissan, as a few years ago a press release of this tone would never have got out the door.

Still no surprise that Nissan backed Renault, after all Renault do own them and share a head office in the UK.

[godmother]

Exint2, sounds like your mum in law got a good deal. Bought my Laguna sport tourer top of the range, bla, bla,last month. 9 months old, 13,000 on clock but paid £14,000.00 Never could do percentages, but get your point. Now, before you start, I know, my husband said it all too, it's a rep's car, bad residuals etc. However, if (and that's a huge IF)I had been treated like a human being instead of an alien (Yarggghhh!, it's a woman buying a car on her own)I would have happily spent double that on a Merc or BMW estate. However, Mrs. Angry here chose not to be treated like a piece of poo on bottom of shoe, so have an ok vehicle which suits my needs and cash in the bank - waa-hey!

[skid]

godmother said:

Exint2, sounds like your mum in law got a good deal. Bought my Laguna sport tourer top of the range, bla, bla,last month. 9 months old, 13,000 on clock but paid £14,000.00 Never could do percentages, but get your point. Now, before you start, I know, my husband said it all too, it's a rep's car, bad residuals etc. However, if (and that's a huge IF)I had been treated like a human being instead of an alien (Yarggghhh!, it's a woman buying a car on her own)I would have happily spent double that on a Merc or BMW estate. However, Mrs. Angry here chose not to be treated like a piece of poo on bottom of shoe, so have an ok vehicle which suits my needs and cash in the bank - waa-hey!

Good Girl!!!!!!!

[agent006]

Surely something like a BMW 750 is the highest depreciating car. Circa £80k down to £20k in 3 years or thereabouts.

[jasper gilder]

Funnily enough I looked at a BMW 5 series for the missus some years ago. Will the residual value after 3 years or 60,000 miles be good? I asked - about 50% the salesman reassured me. Obviously he was too myopic (or thought I was) to see the 60,000 miler parked outside for 30% of its new value!

Residuals are a tricky business - anyone for roulette?

[smele]

As it happens I know the chap who runs the CEBR (Centre for Economic and Business Research), and he is always releasing reports that cause headlines and publicity. But there is normally some element of truth in the reports.

I will leave you to guess what car he used to drive.

[LuS1fer]

jasper gilder said:

Funnily enough I looked at a BMW 5 series for the missus some years ago. Will the residual value after 3 years or 60,000 miles be good? I asked - about 50% the salesman reassured me. Obviously he was too myopic (or thought I was) to see the 60,000 miler parked outside for 30% of its new value! Residuals are a tricky business - anyone for roulette?

You also have to take into account that most BMW's come with "must-have" optional extras which makes the purchase price far higher and the residuals commensurately lower.

Personally, I prefer cars that keep their value or increase in value and gladly offset the fuel costs.

[Sgt^Roc]

exint2 said:

Well my mother in law bought a top of the rang new shape Laguna "Sport Tourer" - List price £22K for £11650 when it was 11 months old and had done 13000 miles - so thats 47% deprecieation in a year - on thier new model........ Methinks they doth protest too much...

Just goes to show that new cars prices are not about paying for the value of the new product

[llamekcuf]

Renault Clio 1.5dci 80bhp
Purchase price with options added £11500
Standard car price knocking on £10000
6 months old..8000 miles, lucky to get £6500 for it, been offered £6000 at two main dealers?!
with things going this way..This one may have to be run into the ground..

[LuS1fer]

And Renault kindly launching a 100bhp 1.5DCi, that'll be even less. Disturbingly, according to Auto Express, the British public (in all their wisdom and glory)now "don't want" the old-style plates and are abandoning Y reg and older cars in favour of "51" and up cars with the new style plate. This factor alone is depressing prices on Y reg cars which can retail for 10% less than a 51 plate.

So Y reg bargains for buyers and big losses for us fools stupid enough to own a car that's apparently on it's last legs before it's 3rd birthday.

[AlpineAndy]

This proves that you shouldn't buy a new car. Leave that to the 'company car' and mercedez man (you know the type - they think they know cars but haven't really got a clue).

Then we can pick up the good deals in their wake. I've never bought a car younger than 5 years old and never lost over GBP 800 in a year on any 'work-horse' car (including mechanical repair work).

>> Edited by AlpineAndy on Friday 30th January 14:55