Disastrous diesel depreciation: your views
Discussion
Keen to get your views on depreciation here.
I bought an approved used 2014 Audi A5 3.0TDi Black Edition 25 months ago (December 2017). The car was first registered in March 2014, original list price £41,700) for £22,900. 17000 miles, perfect condition.
Valuation 25 months later I've had a valuation of c£13,200, despite FASH and being in very good condition (stone chips on bonnet, 1 minor curb on alloy). Mileage is now 42,500. Just had a major service and done the transmission oil change last Sept.
Depreciation here of c£10k in 25 months, c£388 a month.
I’d appreciate your views here:
- Did I overpay when I purchased the car?
- Is this down to diesel being less desirable?
- Something else?
For info: Previous car (approved used 2010 A5 2.0TDi s line, bought 3 years old in 2013 with 20k miles) depreciated from c£21k to £9k over 4 years with me adding another 35k miles to it, FASH. £11k depreciation over 4 years £229 PCM.
Thanks for your help!
I bought an approved used 2014 Audi A5 3.0TDi Black Edition 25 months ago (December 2017). The car was first registered in March 2014, original list price £41,700) for £22,900. 17000 miles, perfect condition.
Valuation 25 months later I've had a valuation of c£13,200, despite FASH and being in very good condition (stone chips on bonnet, 1 minor curb on alloy). Mileage is now 42,500. Just had a major service and done the transmission oil change last Sept.
Depreciation here of c£10k in 25 months, c£388 a month.
I’d appreciate your views here:
- Did I overpay when I purchased the car?
- Is this down to diesel being less desirable?
- Something else?
For info: Previous car (approved used 2010 A5 2.0TDi s line, bought 3 years old in 2013 with 20k miles) depreciated from c£21k to £9k over 4 years with me adding another 35k miles to it, FASH. £11k depreciation over 4 years £229 PCM.
Thanks for your help!
My March 2012 Skoda Octavia vRS diesel (new price after discount around £20K) was bought in June 2013 for £15,500 & was part exchanged in June 2019 for £6,500. Depreciation of £9,000 in 6 years, so £1,500/year = £125/month.
Was replaced by a 10 month old Leon 1.4TSi FR petrol for £14,500.
Was replaced by a 10 month old Leon 1.4TSi FR petrol for £14,500.
Taking into account that you paid the retail price when you bought it and are getting the trade price when you sell, roughly 40% depreciation in just over two years is about what I'd expect. I'm not an avid market watcher but a largish, still relatively new (or at least not old) 'premium' car being hit by the depreciation stick isn't all that surprising is it?
As it happens I've just spent by far the most I ever have on a car on my first ever diesel!
As it happens I've just spent by far the most I ever have on a car on my first ever diesel!
No. On my very quick calculation, it depreciated about 25% per year from each year’s previous value, which is average. Your other car depreciated about 20% a year, but that was over 4 years. I would reckon on 30% in first year, with 20% in following years for a decent large car. However, we are also faced with cars not selling owing to economic uncertainty in general. There is a reluctance to spend on big-ticket items, such as houses too. The whole ICE uncertainty is adding to that.
ETA, it is the zeitgeist, I am afraid, not the leitmotiv!
ETA, it is the zeitgeist, I am afraid, not the leitmotiv!
Edited by Pica-Pica on Tuesday 14th January 09:59
Figures look pretty much as I'd expect / have experienced.
It was doing exactly these sums on the cars I'd owned (bought at between 2 years and 6 years old) and kept for 3 years on average.... that showed me leasing was cheaper (and you then run a brand new car probably with lower maintenance too).
It's a different story if you buy old cars, do mega miles and /or keep them longer, but for me it's a no brainer.
It was doing exactly these sums on the cars I'd owned (bought at between 2 years and 6 years old) and kept for 3 years on average.... that showed me leasing was cheaper (and you then run a brand new car probably with lower maintenance too).
It's a different story if you buy old cars, do mega miles and /or keep them longer, but for me it's a no brainer.
I’ve had a quick look at autotrader with your spec and compared with the petrol. I can’t see any difference in price (taking out the s5).
For your exact spec and edge they are retailing from £14k private sales up to 16 for ones that autotrader say are above value. I can’t see any clear split for petrol or diesel.
I think a bigger impact is likely to who is going to buy an A5.
If I’m a youngish executive I would be looking at your car thinking the newest one has a huge leap in interior design. £15k for a 6 year old car or £320 a month for a brand new one on a lease.
Probably a new lease petrol one is where my money would go, full warranty, no mot, tax, breakdown all included. Bragging rights of having a brand new car. In three years rinse and repeat.
For your exact spec and edge they are retailing from £14k private sales up to 16 for ones that autotrader say are above value. I can’t see any clear split for petrol or diesel.
I think a bigger impact is likely to who is going to buy an A5.
If I’m a youngish executive I would be looking at your car thinking the newest one has a huge leap in interior design. £15k for a 6 year old car or £320 a month for a brand new one on a lease.
Probably a new lease petrol one is where my money would go, full warranty, no mot, tax, breakdown all included. Bragging rights of having a brand new car. In three years rinse and repeat.
leitmotiv said:
Keen to get your views on depreciation here.
I bought an approved used 2014 Audi A5 3.0TDi Black Edition 25 months ago (December 2017). The car was first registered in March 2014, original list price £41,700) for £22,900. 17000 miles, perfect condition.
Valuation 25 months later I've had a valuation of c£13,200, despite FASH and being in very good condition (stone chips on bonnet, 1 minor curb on alloy). Mileage is now 42,500. Just had a major service and done the transmission oil change last Sept.
Depreciation here of c£10k in 25 months, c£388 a month.
I’d appreciate your views here:
- Did I overpay when I purchased the car?
- Is this down to diesel being less desirable?
- Something else?
For info: Previous car (approved used 2010 A5 2.0TDi s line, bought 3 years old in 2013 with 20k miles) depreciated from c£21k to £9k over 4 years with me adding another 35k miles to it, FASH. £11k depreciation over 4 years £229 PCM.
Thanks for your help!
I think that sounds about right. You bought an Approved Used car (the right thing to do) which was probably closer to the top end of the price range, and two years in you're getting £13,200. If a dealer buys that, theres probably £2,500 to £3,000 gross margin to add on. Sounds like £15,995 on a forecourt somewhere which sounds about right relative to it now being two years older and you getting it as an Approved Used car at the time.I bought an approved used 2014 Audi A5 3.0TDi Black Edition 25 months ago (December 2017). The car was first registered in March 2014, original list price £41,700) for £22,900. 17000 miles, perfect condition.
Valuation 25 months later I've had a valuation of c£13,200, despite FASH and being in very good condition (stone chips on bonnet, 1 minor curb on alloy). Mileage is now 42,500. Just had a major service and done the transmission oil change last Sept.
Depreciation here of c£10k in 25 months, c£388 a month.
I’d appreciate your views here:
- Did I overpay when I purchased the car?
- Is this down to diesel being less desirable?
- Something else?
For info: Previous car (approved used 2010 A5 2.0TDi s line, bought 3 years old in 2013 with 20k miles) depreciated from c£21k to £9k over 4 years with me adding another 35k miles to it, FASH. £11k depreciation over 4 years £229 PCM.
Thanks for your help!
The effect has been exacerbated because relatively speaking, you've had it a short time.
just to agree with everyone else really...
I always assume 40% depreciation over 2 years and 50% over 3. Particularly when buying a newish car.
I've been through quite a lot of cars through the years and that holds true for most cars I have had. Exception being stuff that is a bit special (e.g. certain sports cars but not immune) and stuff that is at the bottom of its depreciation curve (e.g. sheds)
Don't think diesel has made any difference as the real shock to diesel car prices was post VAG scandal (more than 2 years ago) and wasn't as big as people expected...
I always assume 40% depreciation over 2 years and 50% over 3. Particularly when buying a newish car.
I've been through quite a lot of cars through the years and that holds true for most cars I have had. Exception being stuff that is a bit special (e.g. certain sports cars but not immune) and stuff that is at the bottom of its depreciation curve (e.g. sheds)
Don't think diesel has made any difference as the real shock to diesel car prices was post VAG scandal (more than 2 years ago) and wasn't as big as people expected...
I bought a 16 plate BMW 320D MSport X drive quite hi spec with 6700 miles on it and the car was 7 months old. List was 40k and I paid 26k for it from a main dealer. I thought it was a very good price. Three years later with 29000 miles on it the part ex and WBAC price is 14500. So it has lost 11500 in three years. It sounds about right but it would of been a bitter pill if I had bought it new.
drgoatboy said:
just to agree with everyone else really...
I always assume 40% depreciation over 2 years and 50% over 3. Particularly when buying a newish car.
I've been through quite a lot of cars through the years and that holds true for most cars I have had. Exception being stuff that is a bit special (e.g. certain sports cars but not immune) and stuff that is at the bottom of its depreciation curve (e.g. sheds)
Don't think diesel has made any difference as the real shock to diesel car prices was post VAG scandal (more than 2 years ago) and wasn't as big as people expected...
What Car®️used to quote %of list price after 3 years and 36k miles. Very few cars got as high as 50%, and a great many only got 33%.I always assume 40% depreciation over 2 years and 50% over 3. Particularly when buying a newish car.
I've been through quite a lot of cars through the years and that holds true for most cars I have had. Exception being stuff that is a bit special (e.g. certain sports cars but not immune) and stuff that is at the bottom of its depreciation curve (e.g. sheds)
Don't think diesel has made any difference as the real shock to diesel car prices was post VAG scandal (more than 2 years ago) and wasn't as big as people expected...
You'll have paid top money buying from the main dealer but if you were happy with the price then you got a good deal for you.
Your depreciation is about right the fact it'd be the same if it was a petrol, infact used diesel sales are strong at the moment, I'm sourcing more diesels than petrols with most people that are considering a petrol are looking at hybrids.
I'd redo your tittle to "usual depreciation" your views.
Your depreciation is about right the fact it'd be the same if it was a petrol, infact used diesel sales are strong at the moment, I'm sourcing more diesels than petrols with most people that are considering a petrol are looking at hybrids.
I'd redo your tittle to "usual depreciation" your views.
Depreciation is a mare. If it makes you feel better I paid £30k for a pre reg (brand new ) BMW 340i in October 2018. Unbelievably the list was £47k of BMW magic monopoly money. It was considered an all round great deal - I'ts now worth £23k so £500 a month, anyone buying new back then even at 20% off list would be looking at a grand a month.
I don't do loans or PCP and have some great cars over the years but its a mugs game even when buying pre reg at this level in the market.. I'm thinking of cutting and running, taking the equity out of the car, buying cheaper.
Without doubt mine will continue to fall like a stone for the next few years.
I don't do loans or PCP and have some great cars over the years but its a mugs game even when buying pre reg at this level in the market.. I'm thinking of cutting and running, taking the equity out of the car, buying cheaper.
Without doubt mine will continue to fall like a stone for the next few years.
leitmotiv said:
Keen to get your views on depreciation here.
I bought an approved used 2014 Audi A5 3.0TDi Black Edition 25 months ago (December 2017). The car was first registered in March 2014, original list price £41,700) for £22,900. 17000 miles, perfect condition.
Valuation 25 months later I've had a valuation of c£13,200, despite FASH and being in very good condition (stone chips on bonnet, 1 minor curb on alloy). Mileage is now 42,500. Just had a major service and done the transmission oil change last Sept.
Depreciation here of c£10k in 25 months, c£388 a month.
I’d appreciate your views here:
- Did I overpay when I purchased the car?
- Is this down to diesel being less desirable?
- Something else?
For info: Previous car (approved used 2010 A5 2.0TDi s line, bought 3 years old in 2013 with 20k miles) depreciated from c£21k to £9k over 4 years with me adding another 35k miles to it, FASH. £11k depreciation over 4 years £229 PCM.
Thanks for your help!
Asides from diesel going out of ‘vogue’.I bought an approved used 2014 Audi A5 3.0TDi Black Edition 25 months ago (December 2017). The car was first registered in March 2014, original list price £41,700) for £22,900. 17000 miles, perfect condition.
Valuation 25 months later I've had a valuation of c£13,200, despite FASH and being in very good condition (stone chips on bonnet, 1 minor curb on alloy). Mileage is now 42,500. Just had a major service and done the transmission oil change last Sept.
Depreciation here of c£10k in 25 months, c£388 a month.
I’d appreciate your views here:
- Did I overpay when I purchased the car?
- Is this down to diesel being less desirable?
- Something else?
For info: Previous car (approved used 2010 A5 2.0TDi s line, bought 3 years old in 2013 with 20k miles) depreciated from c£21k to £9k over 4 years with me adding another 35k miles to it, FASH. £11k depreciation over 4 years £229 PCM.
Thanks for your help!
When a new model is released the older models plummet like a stone. A new A5 was released in 2017 so the previous models would now deprecate faster, your previous a5 was bought and sold in the same model cycle (albeit a facelift in 2013).
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