Depreciation Proof - What are the Options?
Depreciation Proof - What are the Options?
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Discussion

mcbook

Original Poster:

1,442 posts

205 months

Thursday 5th July 2012
quotequote all
There have been a few threads on slow depreciating cars in the past and there’s a chance that I’m covering old ground here. However, I think this angle is a little different…

The situation is this: you’re after a car to be used infrequently, not even a weekend car, more like a once a month car that will cover no more than 3,000 miles per year and will hold its value well i.e. be expected to lose not more than 10% of its value over a couple of years. It goes without saying that this car must be interesting, although not a prerequisite that it be the fastest or best handling thing since a Ferrari 458.

The price range is broad and tops out at 30k but it would be good to hear about cheaper options. So far, I’ve come up with these;

1. Brand new Morgan 3-wheeler - at the top of the price range but very individual and likely to hold its value well, even from new, being a Morgan.

2. Porsche 911 (996 Turbo) – fast, practical, look to have bottomed out on price for well looked after, low milers.

3. Audi RS4 (B5) – cheaper end of the spectrum but has the advantage of practicality for long trips and tuning potential for outrageous performance.

4. BMW M3 (E46) – again, at the cheaper end but good, older, low mileage examples are attractive. CSL also a consideration but not sure on depreciation.

What else is out there?

Matt_N

9,044 posts

232 months

Thursday 5th July 2012
quotequote all
I wouldn't say the E46 M3 is depreciation proof, look at where E36 prices are, yes tidier examples will retain more, the one to go for is the CSL, definitely a future classic imo.

mcbook

Original Poster:

1,442 posts

205 months

Thursday 5th July 2012
quotequote all
Matt_N said:
I wouldn't say the E46 M3 is depreciation proof, look at where E36 prices are, yes tidier examples will retain more, the one to go for is the CSL, definitely a future classic imo.
Kind of agree but the E46 is considered a far better M car than the E36 so that might help. Also, CSL values have been dropping fairly sharpish over the last couple of years.

BrewsterBear

1,548 posts

222 months

Thursday 5th July 2012
quotequote all
I wouldn't go with a 996 of any iteration. For the last 10 years You'll find people saying "Yeah, but they must have bottomed out now." Even Henry (911 Virgin) is quoted somewhere as little as two years ago saying that as they'd hit £20k they wouldn't go much lower.

If you're looking for infrequent use, depreciation proof Pork for £30k I'd be looking at an excellent example of a 993 or the daddy of them all - a 930 Turbo.

mcbook

Original Poster:

1,442 posts

205 months

Thursday 5th July 2012
quotequote all
BrewsterBear said:
I wouldn't go with a 996 of any iteration. For the last 10 years You'll find people saying "Yeah, but they must have bottomed out now." Even Henry (911 Virgin) is quoted somewhere as little as two years ago saying that as they'd hit £20k they wouldn't go much lower.

If you're looking for infrequent use, depreciation proof Pork for £30k I'd be looking at an excellent example of a 993 or the daddy of them all - a 930 Turbo.
Interesting POV... I suppose the volume of 996s might mean their depreciation curve looks quite different from previous 911s. Or maybe that's nonsense, who knows.

I do like 993s...

kambites

71,573 posts

251 months

Thursday 5th July 2012
quotequote all
The Morgan would probably do that, I doubt any of the others on your list will.

Something like a Caterham or an oldish Elise will manage it. Some of the TVRs might too?

mcbook

Original Poster:

1,442 posts

205 months

Thursday 5th July 2012
quotequote all
kambites said:
The Morgan would probably do that, I doubt any of the others on your list will.

Something like a Caterham or an oldish Elise will manage it. Some of the TVRs might too?
Caterham and Elise both good shouts.

However, I do think RS4 (B5) values will continue to be strong... quite rare in comparison to newer model.

kambites

71,573 posts

251 months

Thursday 5th July 2012
quotequote all
mcbook said:
However, I do think RS4 (B5) values will continue to be strong... quite rare in comparison to newer model.
"Continue to be strong" perhaps, but I don't believe it'll manage 90% of its value over two years.

300bhp/ton

41,030 posts

220 months

Thursday 5th July 2012
quotequote all
mcbook said:
There have been a few threads on slow depreciating cars in the past and there’s a chance that I’m covering old ground here. However, I think this angle is a little different…

The situation is this: you’re after a car to be used infrequently, not even a weekend car, more like a once a month car that will cover no more than 3,000 miles per year and will hold its value well i.e. be expected to lose not more than 10% of its value over a couple of years. It goes without saying that this car must be interesting, although not a prerequisite that it be the fastest or best handling thing since a Ferrari 458.

The price range is broad and tops out at 30k but it would be good to hear about cheaper options. So far, I’ve come up with these;

1. Brand new Morgan 3-wheeler - at the top of the price range but very individual and likely to hold its value well, even from new, being a Morgan.

2. Porsche 911 (996 Turbo) – fast, practical, look to have bottomed out on price for well looked after, low milers.

3. Audi RS4 (B5) – cheaper end of the spectrum but has the advantage of practicality for long trips and tuning potential for outrageous performance.

4. BMW M3 (E46) – again, at the cheaper end but good, older, low mileage examples are attractive. CSL also a consideration but not sure on depreciation.

What else is out there?
The Morgan maybe, the rest look like no hopers to me. Esp the M3, hell have you actually noticed how cheap e36 examples are? Why do you think the e46 won't do the same?


Classics or something very very niche and special would be your answer. Although e30 M3's seem a fairly solid bet as would something like a Cosworth.

mcbook

Original Poster:

1,442 posts

205 months

Thursday 5th July 2012
quotequote all
300bhp/ton said:
The Morgan maybe, the rest look like no hopers to me. Esp the M3, hell have you actually noticed how cheap e36 examples are? Why do you think the e46 won't do the same?


Classics or something very very niche and special would be your answer. Although e30 M3's seem a fairly solid bet as would something like a Cosworth.
I suppose I think the E46 will do better because it's a much better car. However, there are a lot of them so that will act against it. Are there a lot of good, low mileage ones though?

I thought about E30 M3s but LHD puts me off those. I agree on the Cosworth but, personally, don't like them.

SirSamuelOfBuca

1,353 posts

187 months

Thursday 5th July 2012
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any fast ford smile

kambites

71,573 posts

251 months

Thursday 5th July 2012
quotequote all
mcbook said:
Are there a lot of good, low mileage ones though?
I suspect the answer to that is "yes". I can't see E46 M3s plateauing at above about £5k.

Flipatron

2,089 posts

228 months

Thursday 5th July 2012
quotequote all
Z3M Coupe will go the same way as the E30 M3 IMO. You can currently pick a nice on up for 10k.

mcbook

Original Poster:

1,442 posts

205 months

Thursday 5th July 2012
quotequote all
kambites said:
I suspect the answer to that is "yes". I can't see E46 M3s plateauing at above about £5k.
Is the outlook different for the "CS" model? I think too new to make a call yet.

mcbook

Original Poster:

1,442 posts

205 months

Thursday 5th July 2012
quotequote all
Flipatron said:
Z3M Coupe will go the same way as the E30 M3 IMO. You can currently pick a nice on up for 10k.
Oh, I like that. Slightly off-the-wall and very rare.

kambites

71,573 posts

251 months

Thursday 5th July 2012
quotequote all
mcbook said:
kambites said:
I suspect the answer to that is "yes". I can't see E46 M3s plateauing at above about £5k.
Is the outlook different for the "CS" model? I think too new to make a call yet.
I haven't driven a CS so I've no idea how different it feels from a normal one.

300bhp/ton

41,030 posts

220 months

Thursday 5th July 2012
quotequote all
mcbook said:
I thought about E30 M3s but LHD puts me off those. I agree on the Cosworth but, personally, don't like them.
Guess it depends on what's important, the value retention or if you like it. But if you plan to hardly use it, does it really matter what it is, so long as it's interesting?

Will sell-ability be important too? Some niche cars that hold their value well might be harder to shift on and might take a while to find a buyer.

Terzo123

4,750 posts

238 months

Thursday 5th July 2012
quotequote all
Flipatron said:
Z3M Coupe will go the same way as the E30 M3 IMO. You can currently pick a nice on up for 10k.
I agreee with this.

I'd also add a manual Honda NSX to list

dingocooke

670 posts

250 months

Thursday 5th July 2012
quotequote all
I would say that early WRX/STi Scooby Imprezza's are a very good bet for a future classic that is very useable and pricing thats already starting to creep up for the right cars; 'if' you can find an unmodified one (or one easily returned to stock) , that doesn't smell of Lynx Africa.....
As stated earlier in the thread; depends what you want it for; a Morgan and a Caterham are good, but no way a daily driver for most people. Similarly I've had 4 cobra reps and not lost a bean on them, and had a lot of fun, but again, about as practical for day to day use as a savaloy sausage in a jousting tournament...
Enjoy the research and be lucky with what you decide!!!

CampDavid

9,145 posts

228 months

Thursday 5th July 2012
quotequote all
NSX prices have firmed up over the past few years, I think they're ready to launch up into space.

993s are on the rise, as are 964s, 996s are heading south. A ropey 996 turbo will be down into 9 figures within the next 3 years.

Z3M coupes will keep their cash, E46 M3s plainly won't. Too many about and no where near enough appeal as a weekend car. The CSL may do ok, though I'm just not confident in it. I fancy E34 M5s to start doing well soon.

R129 Mercs are currently on their arse. Keep one for long enough and it may do ok. R107s seem to be on route to proper money but only the right ones, that'll be the 3.0l 24 valve.