Worst loss on a car

[ShayneJ]

Which all go's to show that anyone that buys a NEW car regardless of their relative
wealth is a certifiable moron

[vrooom]

Citroen AX GT, piece of st, bought it for £750, sold it for £100. wanted to get rid of it quick, and learned my lesson about french car.

[John Galt]

vrooom said:

Citroen AX GT, piece of st, bought it for £750, sold it for £100. wanted to get rid of it quick, and learned my lesson about french car.

Yeah, because an early 90's Citroen is going to tell you everything you need to know about EVERY OTHER french car, ever made. Phew....close call fella!

Oh wait a minute...

[BigWithey]

Brand new RX-8 PZ @ £20k, 3yrs later it was worth ........£9k

[Zwolf]

Stand up Veyron owners...

[Zwolf]

ShayneJ said:

Which all go's to show that anyone that buys a NEW car regardless of their relative
wealth is a certifiable moron

Unless it's an Enzo or McLaren F1, BMW Z8, E9 CSL, or E30 M3 Evo Sport, 911 RS (of just about any vintage over time) plus probably many other things not off the top of my head...

[Zwolf]

Nedzilla said:

There should be a law against depreciation on cars,its fkin criminal!

So you would be happy to pay the original new price for a five year old, 60k mile car as you would for the same thing new? Same again at 10, 15 or 20 years old and 100-150k miles?

Of course not, that would be insane.

[daemon]

mikefacel said:

Nedzilla said:

There should be a law against depreciation on cars,its fkin criminal!

It's completely voluntary. This thread has just reminded me why I stopped buying new or nearly-new cars.

Same here. I'm now a motor trader - its amazing what you can get for so little these days.

[daemon]

ShayneJ said:

Which all go's to show that anyone that buys a NEW car regardless of their relative
wealth is a certifiable moron

Not necessarily.

If you can afford the depreciation then why not?

[daemon]

ShayneJ said:

Which all go's to show that anyone that buys a NEW car regardless of their relative
wealth is a certifiable moron

Very impressed with your fleet btw.

Nice

[Nedzilla]

Zwolf said:

Nedzilla said:

There should be a law against depreciation on cars,its fkin criminal!

So you would be happy to pay the original new price for a five year old, 60k mile car as you would for the same thing new? Same again at 10, 15 or 20 years old and 100-150k miles?

Of course not, that would be insane.

Of course cars have to lose value.If they didn't there wouldnt be a car industry.I am thinking mainly of the expensive stuff.Something that costs £150k new then six months later with 1000 miles on is only worth £100k.
How can this be?

Are we just being bent over a barrel by car manufacturers when it comes to buying a brand new car??

[daemon]

Nedzilla said:

Zwolf said:

Nedzilla said:

There should be a law against depreciation on cars,its fkin criminal!

So you would be happy to pay the original new price for a five year old, 60k mile car as you would for the same thing new? Same again at 10, 15 or 20 years old and 100-150k miles?

Of course not, that would be insane.

Of course cars have to lose value.If they didn't there wouldnt be a car industry.I am thinking mainly of the expensive stuff.Something that costs £150k new then six months later with 1000 miles on is only worth £100k.
How can this be?

Are we just being bent over a barrel by car manufacturers when it comes to buying a brand new car??

The sort of loss you are describing tends to happen to cars that are not as 'in demand' as the manufacturers would like.

[Zwolf]

Nedzilla said:

Something that costs £150k new then six months later with 1000 miles on is only worth £100k.
How can this be?

Are we just being bent over a barrel by car manufacturers when it comes to buying a brand new car??

Not really, £25,000 of a new £150k car is VAT, there's the effect of new car discounts to factor against the values of "nearly new" examples which have to be cheaper to appeal, plus the trade-retail margin of course - which could well account for £10k or more as then you're competing against dealer and manufacturer demos/ex-press cars etc.

The point is that that rate of depreciation isn't constant, else it'd be worth nothing at all within 3,000 miles and 18 months - which clearly isn't the case. Changing £100k+ new cars every six months is simply a great way to hand HMRC an awful lot of your money - less than the dealers get out of you for so doing.

daemon said:

The sort of loss you are describing tends to happen to cars that are not as 'in demand' as the manufacturers would like.

Aston Rapide springs to mind as such an example. £155k + options new, ex-demos at 1,500 miles a few months later were £100-110k and still not flying off the forecourts.

Edited by Zwolf on Sunday 20th November 19:16

[Nedzilla]

daemon said:

Nedzilla said:

Zwolf said:

Nedzilla said:

There should be a law against depreciation on cars,its fkin criminal!

So you would be happy to pay the original new price for a five year old, 60k mile car as you would for the same thing new? Same again at 10, 15 or 20 years old and 100-150k miles?

Of course not, that would be insane.

Of course cars have to lose value.If they didn't there wouldnt be a car industry.I am thinking mainly of the expensive stuff.Something that costs £150k new then six months later with 1000 miles on is only worth £100k.
How can this be?

Are we just being bent over a barrel by car manufacturers when it comes to buying a brand new car??

The sort of loss you are describing tends to happen to cars that are not as 'in demand' as the manufacturers would like.

Thats true enough,but even a top end £50k bmw is going to lose around £10k after a year and very little use.

[daemon]

Nedzilla said:

daemon said:

Nedzilla said:

Zwolf said:

Nedzilla said:

There should be a law against depreciation on cars,its fkin criminal!

So you would be happy to pay the original new price for a five year old, 60k mile car as you would for the same thing new? Same again at 10, 15 or 20 years old and 100-150k miles?

Of course not, that would be insane.

Of course cars have to lose value.If they didn't there wouldnt be a car industry.I am thinking mainly of the expensive stuff.Something that costs £150k new then six months later with 1000 miles on is only worth £100k.
How can this be?

Are we just being bent over a barrel by car manufacturers when it comes to buying a brand new car??

The sort of loss you are describing tends to happen to cars that are not as 'in demand' as the manufacturers would like.

Thats true enough,but even a top end £50k bmw is going to lose around £10k after a year and very little use.

Yup, though you can get 8% off most BMW's list price, so thats the price down to £46K, so a £6K loss in reality.

That will reflect that there has to be a big enough differentiator in price for people to buy the used car, compared to spending a bit more and buying new.

[Zwolf]

Nedzilla said:

Thats true enough,but even a top end £50k bmw is going to lose around £10k after a year and very little use.

£50k new = £45k discounted. So a year old one needs to be sufficiently cheaper than that to have used market appeal, mostly to people who could equally as well spec their own for a few £k more.

Therefore the used one will probably be up for £42-43k with the dealer hoping to realise around £40k. Allow for a £5k trade-retail margin and there's £10-£15k dropped from new without breaking sweat.

£50k new car equates to under £42k once VAT has been accounted for and up to a further £1k less in first year's VED that's tucked away in the new car price, but contributes nothing to the %age residual value retained.

[Nedzilla]

Im not really complaining as i will never buy a new or nearly new car and therefore it puts me in a better position as a 2nd hand car buyer.It just seems wrong that buyers of new cars should be losing so much money when they come to sell on.

Lets face it,if you spent £150k on a new house and then moved a year later you wouldn't expect to lose £50k on it would you. There would be a fkin uproar if you did!

And before anyone says,yes i know this was actually the case only a few years ago as my old next door neigbour will tell you!

[daemon]

Nedzilla said:

Im not really complaining as i will never buy a new or nearly new car and therefore it puts me in a better position as a 2nd hand car buyer.It just seems wrong that buyers of new cars should be losing so much money when they come to sell on.

Lets face it,if you spent £150k on a new house and then moved a year later you wouldn't expect to lose £50k on it would you. There would be a fkin uproar if you did!

And before anyone says,yes i know this was actually the case only a few years ago as my old next door neigbour will tell you!

Its all about supply and demand though isnt it?

Also, the trick behind depreciation is to not sell the car....

[caiss4]

Damned right. I bought the S4 for £44K 8 years ago. 38k miles later and a few unexpected bills I cry at £8-£9k max I'd get for selling it.

Did 300 miles this weekend and loved every one of them (well except for the 45mins to do 2 miles from the M40 to Bicester today)

I'm hanging on for classic status now.....some hope but no other b****r is going to benefit from my depreciation.

[Fun Bus]

mnk303 said:

I hate to think how much money I have give away, mostly to Sytner garages

There's your problem. You're paying what I call, "Sytner tax". Buying or selling, Sytner tax will fk you up.

Interesting time for this subject to come up. I've learnt this weekend I've lost £5k on a car that cost me £8.5k two years and 25k miles ago. Factor in all the unplanned maintenance and it adds about £2k onto that figure.