Round-trip cost of buying and selling a car worth £5k?
Discussion
Say I'm looking at something in the £5,000 range, and I find a reasonably priced car at a dealer's (this will be say a 2007 MX-5, in case that's relevant). If I were to buy it, deal with all paperwork (exclude insurance, so whatever else is there - I guess registering the car in my name?) then try and sell after 6-8 months, what would be the total cost?
I guess a lot depends on whether I'd be selling back to a dealer, or privately? (I'm assuming a dealer would pay quite a bit less than what I myself paid for the car)?
I guess a lot depends on whether I'd be selling back to a dealer, or privately? (I'm assuming a dealer would pay quite a bit less than what I myself paid for the car)?
With a convertible it depends on time of the year.
If you buy it in march and sell in September/October it will lose more than buying in October and selling in March.
That aside buying from a dealer then selling back to the dealer 6-9 months later you'll lose at least £1500 IMO if not more.
Buy privately sell privately and you may get away with £500 if you're lucky.
Disclaimer: Figures are completely made by myself and should not be relied upon to make an informed decision
If you buy it in march and sell in September/October it will lose more than buying in October and selling in March.
That aside buying from a dealer then selling back to the dealer 6-9 months later you'll lose at least £1500 IMO if not more.
Buy privately sell privately and you may get away with £500 if you're lucky.
Disclaimer: Figures are completely made by myself and should not be relied upon to make an informed decision
You can work out the 'dealer premium' by looking at what similar age/spec/condition MX-5s are being advertised for as private sales. You lose this much immediately as soon as you buy the car. I guess £1k+ here.
Then you have depreciation, on an older sporty car like that this could be minimal.
Then you have the seasonal effect, as noted - buy this month and sell in July could work out as a value boost, buying in spring and selling in winter the opposite.
Then you have the general economic condition / market movements during 2021, highly unpredictable due to the pandemic, who knows?
Then if you sell back to a dealer I guess you lose a bit, but not too much since they're competing with private buyers, maybe £300-500 lower here? But selling privately avoids this.
In my experience it's quite likely you'll find your new car needs _something_ fairly soon - a tyre or four, a clutch, radio, that sort of thing. I tend to find I spend more money on a car in its first six months with me.
Overall I'd suggest that if you want to buy a car and sell it again within the year and not lose too much money, and especially at this sort of price range, you'll be much better off buying and selling privately - in this case you could easily lose next to nothing or even make a little 'profit'.
Then you have depreciation, on an older sporty car like that this could be minimal.
Then you have the seasonal effect, as noted - buy this month and sell in July could work out as a value boost, buying in spring and selling in winter the opposite.
Then you have the general economic condition / market movements during 2021, highly unpredictable due to the pandemic, who knows?
Then if you sell back to a dealer I guess you lose a bit, but not too much since they're competing with private buyers, maybe £300-500 lower here? But selling privately avoids this.
In my experience it's quite likely you'll find your new car needs _something_ fairly soon - a tyre or four, a clutch, radio, that sort of thing. I tend to find I spend more money on a car in its first six months with me.
Overall I'd suggest that if you want to buy a car and sell it again within the year and not lose too much money, and especially at this sort of price range, you'll be much better off buying and selling privately - in this case you could easily lose next to nothing or even make a little 'profit'.
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