Depreciation

[Storer]

Just bought a 1 year old Discovery 3 XS auto to replace my TD5. It's a lovely car and much nicer to drive than the TD5. Better ride off road and on and should tow my 3.5t trailer a treat.

The first owner had over £4K worth of extras fitted to the vehicle taking the list price over £41k.

This car has lost over £16500 in one year and 11000 miles or 40% of its cost. I assume the first owner managed a discount which would help a bit but have others on here had similar experiences?

[Gazzab]

probably! Guess I will have lost about 6k on mine in ten months. My x s was a few months old when I g
ot it though.

[AstonZagato]

Land Rover are doing a two year deal at the moment: 50% up front and then either 50% in year two or give back the car. So I'd expect the cars to lose 50% in two years or more.

[Triple7]

The bottom fell out the market 3 months ago. Crippling depreciation has since ensued. Dithering Gov't with retrospective tax changes, high oil price and credit crunch, mean big thirsty cars are taking a battering and dealers are panicking and heavily discounting used cars, which in turn is hurting all of us.

I agree with the 50% over 2 years, shame but things can only get better, right?

G

Edited by Triple7 on Monday 1st September 16:29

[Storer]

I wouldn't bet on it getting better any time soon.

I need to be able to get about off road and tow a 3.5t trailer so the Discovery offers the ability and a bit of comfort. If I didn't need these attributes I wouldn't have one, as a large estate car would offer more comfort, better driving experience and lower cost per mile.

[Gazzab]

How does £41K work as list?
I bought my 07 XS this time last year. Was about 4 months old at the time and paid £29K or less (cant quite remember the price!). Bought from a dealer. Has got plenty of extras. I am sure at the time a new one was about £32K?

[sjc]

Gazzab said:

How does £41K work as list?
I bought my 07 XS this time last year. Was about 4 months old at the time and paid £29K or less (cant quite remember the price!). Bought from a dealer. Has got plenty of extras. I am sure at the time a new one was about £32K?

Agreed, you could have got a new HSE for less than £41K.

[Gazzab]

He has an invoice for £41K came with the car. Find it strange. The latest XS is expensive but that is cos they added sat nav and leather as standard. The XS was £34K a year ago list. Easy to add £4K extras I guess but might as well get SE or HSE for less than £41K.

[Storer]

I don't know why they paid £41K. There are still people who don't haggle out there (few and far between). The car has leather, sat nav, auto, front and rear park sensors, bluetooth phone prep, side steps (since removed) lots of stainless steel parts replacing plastic and numerous other frippery.

I agree you could get one for a lot less without all this and as I bought it sight unseen and was only aware of the main items when I agreed to the purchase. I even had some bits removed (light guards - never found I needed them on the farm so god know why you need them on the road).

I had a 3.5t rated tow-bar and clevis fitted and full rubber mats throughout, taxed and private plate transfer done by dealer also.

I know a lot of the extras are money down the drain but I didn't pay for them, the original buyer did. That is why the depreciation is so high.

It doesn't explain a friends Subaru Legacy 3.0 estate loosing £16.2K in 12 months (almost 58%).

The market is feeling some pain at the moment.

[isv]

Well if I could throw a somewhat different light on the subject of LR depreciation... just sold my 2004 Defender 110 County Hard top. I bought it two years ago with barely 20k on the clock - then put well over 35k miles on it. Sold it two weeks ago for just £150 less than I paid for it.

Defenders seem to make absolutely stupid money. I figured that what I got for the Defender would almost pay for a newer Disco 3 with less miles!

I simply don't see why they hold their value so well (perhaps they've also taken a hit in recent weeks?) - after all there's not much to them except a hunk of metal and a few rivets... I guess I shouldn't complain - getting two years trouble-free motoring for just £150 isn't bad at all.

[Gazzab]

So how far has the car dropped in value now?
Previously dropped from 41K to 25k. Now at 15K ?

[Zumbruk]

Here's the depreciation curve for big 4x4s at the moment;

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[Gazzab]

Great time to buy one !
I still think the D3 is an amazing car. OK the plastics are rubbish but it drives well, has an excellent gear box etc..... And it is so fuel efficient ! I get a much better MPG out of mine than I do out of my merc clk.
If an 07 car can be had for sub 20K now then that is such great value. I do worry that it spells the end for land rover though. I certainly wouldnt buy a new one anymore what with the major value falls. So I suspect LR will struggle with its profits !

[BLUETHUNDER]

Gazzab said:

Great time to buy one !
I still think the D3 is an amazing car. OK the plastics are rubbish but it drives well, has an excellent gear box etc..... And it is so fuel efficient ! I get a much better MPG out of mine than I do out of my merc clk.
If an 07 car can be had for sub 20K now then that is such great value. I do worry that it spells the end for land rover though. I certainly wouldnt buy a new one anymore what with the major value falls. So I suspect LR will struggle with its profits !

IMHO Landrovers have never been a good buy from new.Apart from the Defender, all of them drop in value like a stone.It was amazing how the L322 held artificial prices for so long.