Disastrous diesel depreciation: your views

[Deep Thought]

doog442 said:

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 hate to rub salt in your wound, but you can now buy a 2019 340i from a BMW dealer for as little as £22,798.

https://www.autotrader.co.uk/classified/advert/201...

That puts trade price on that particular car around £20k ish at best.

However, conversely, why would you cut and run now after you've suffered the worst of its depreciation?

Its going to depreciate relatively gently from here on in

Edited by Deep Thought on Tuesday 14th January 21:37

Edited by Deep Thought on Tuesday 14th January 21:37

[Deep Thought]

jonny70 said:

Asides from diesel going out of ‘vogue’.
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).

Thats the point though - it hasnt plummeted like a stone, its fairly typical depreciation on this sort of car.

Its a £15,995 car on the forecourt, so a £13.2K bid sounds about right.

[PenelopaPitstop]

ncjones said:

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.

I was considering keeping Audi A8 after end of leasing. I was paying around £5K per annum average during 3 years term. After monitoring used car prices, I decided car will depreciate £5K pa for next few years and you have to add maintenance and warranty cost to it. So leasing something new is cheaper. Now I'm waiting for some super deal on expensive car at £10K for 2 years and 10K miles per annum mileage. BMW840i doesn't fit my criteria so I didn't jump on a deal

[anonymous-user]

Deep Thought said:

I hate to rub salt in your wound, but you can now buy a 2019 340i from a BMW dealer for as little as £22,798.

https://www.autotrader.co.uk/classified/advert/201...

That puts trade price on that particular car around £20k ish at best.

However, conversely, why would you cut and run now after you've suffered the worst of its depreciation?

Its going to depreciate relatively gently from here on in

Edited by Deep Thought on Tuesday 14th January 21:37

Edited by Deep Thought on Tuesday 14th January 21:37

That example is poverty spec to be fair. WBAC are coming in at £23.5K for mine, Motorway have offered £24k.

[Deep Thought]

doog442 said:

That example is poverty spec to be fair. WBAC are coming in at £23.5K for mine, Motorway have offered £24k.

Agreed.

But the point still stands - why get rid of your car now its suffered the worst part of its depreciation?

[cailean]

As has often been said, the easiest way to damage your wealth is to buy new or nearly new cars. Especially more expensive ones.

[ChocolateFrog]

Be thankful you weren't the first owner, cost per mile for a "normal" in depreciation alone looks pretty scary, although I assume it was probably a lease.

Those figures, although entirely normal I presume, are eye watering.

[Equilibrium25]

bentley01 said:

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.

Not quite as bitter as you think. It was fairly easy to get 25% off a factory order 3 series in 2016.

[Pica-Pica]

Equilibrium25 said:

bentley01 said:

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.

Not quite as bitter as you think. It was fairly easy to get 25% off a factory order 3 series in 2016.

...and off a 9-miles-old pre-reg with full options. Mine is 3 years old now, and a keeper.

[leitmotiv]

Thanks all for your sharing your experiences and views. It's really useful context for me as I decide my next move.

[TREMAiNE]

I cannot believe how much that has cost you in depreciation, OP.
Given how expensive these mundane (albeit still very nice) cars are to drive, it’s definitely worth getting yourself into something more exciting, whilst actual monthly costs might go up, over the duration of ownership they may be significantly lower.

I appreciate that it is a vastly different car, but I ran a 987.2 Boxster S for 3.5 years and 23,000 miles and my total monthly costs over that time frame was £444. Bare in mind, that is what the TOTAL cost of ownership worked out as…

£1750 servicing costs - 2-year intervals so this is quite reasonable.
£800 tyres
£450 discs and pads
£50 for a new Boxster S badge
£1,100 for the Porsche extended warranty renewal
£1,000 on VED
£2,950 on insurance
£5,250 on depreciation
£5,300 (ish) on fuel (23,000 miles)

[Sheepshanks]

Pica-Pica said:

Equilibrium25 said:

bentley01 said:

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.

Not quite as bitter as you think. It was fairly easy to get 25% off a factory order 3 series in 2016.

...and off a 9-miles-old pre-reg with full options. Mine is 3 years old now, and a keeper.

It's a bit sobering if you work it out even over a very long term - l got a similar deal to bentley01 when I bought a 5mth old Merc in 2005 that had list of £36K (and new they were on long leadtimes so weren't being heavily discounted) for what was an amazing deal at the time of £23500.

I've still got it, and if we assume it's worthless now it's still cost £130/mth - plus it's probably nudging £1000/yr in service (which I suppose I'd have to pay anyway) and repairs to keep it on the road.

[The Mad Monk]

About right I would say.

You have put 25 months and 25,500 miles on it. It is a two year older car and you have gone from retail price to trade in price.

'bout right.