Buying diesel SUV - madness?
Discussion
It really depends on what your idea of falling off a cliff is.
To me, losing £5K over 2 years on a car is falling off a cliff so in my case, yes it would which is why my daily is a 7 year old pocket SUV which due to Covid madness has lost virtually nothing in the last 3 years and costs next to nothing to run.
But it's not a nearly new bloaty SUV and anyone who would be in the market for a 2 year old Tourag probably isn't going to consider a 7 year old small SUV.
I've had bigger and more depreciating cars in the past but they've usually been subsidised by an employer.
To me, losing £5K over 2 years on a car is falling off a cliff so in my case, yes it would which is why my daily is a 7 year old pocket SUV which due to Covid madness has lost virtually nothing in the last 3 years and costs next to nothing to run.
But it's not a nearly new bloaty SUV and anyone who would be in the market for a 2 year old Tourag probably isn't going to consider a 7 year old small SUV.
I've had bigger and more depreciating cars in the past but they've usually been subsidised by an employer.
You have to balance the need for a car (maybe and expanding family/longer commute/torque for towing etc) over the financials.
I see nothing wrong with buying a modern diesel when the world is getting their knickers in a twist over EV's. I bought a new Passat Estate diesel in Jan 2020 to transport the Vikingettes to/from University and for my long distance caving trips.. It will be a 10 year+ car so depreciation isn't my concern. Sure some cities push back against diesels in parking fees and zones and that may well grow, but I don't plan to drive it to any Stasi zone. But there's satisfaction in having a car with a 600-850 mile range that I can afford to fuel.
I see nothing wrong with buying a modern diesel when the world is getting their knickers in a twist over EV's. I bought a new Passat Estate diesel in Jan 2020 to transport the Vikingettes to/from University and for my long distance caving trips.. It will be a 10 year+ car so depreciation isn't my concern. Sure some cities push back against diesels in parking fees and zones and that may well grow, but I don't plan to drive it to any Stasi zone. But there's satisfaction in having a car with a 600-850 mile range that I can afford to fuel.
lornemalvo said:
I posted this in the car salesman thread, but it's buried in another discussion, so have posted it here. I'm thinking about buying a 2 year old Touareg TDI. Depreciation wise, are cars like this expected to fall off a cliff? Would it be financial madness?
I suppose it also depends on how long you plan to keep it, if a long time then I guess depreciation doesn't matter so much and it's more about getting the car you want/need? If short term then maybe better to lease?
lornemalvo said:
I posted this in the car salesman thread, but it's buried in another discussion, so have posted it here. I'm thinking about buying a 2 year old Touareg TDI. Depreciation wise, are cars like this expected to fall off a cliff? Would it be financial madness?
It's easy to overthink these things. Any two year old large SUV will depreciate quite steeply in a normal market anyway. Throw in cost of living and clean air zones, and that is more downward pressure on the price.That said, it is a Euro 6 diesel so meets the requirements for all clean air zones. It will take years for sufficient electric SUVs to filter through to the used marrket in great numbers. Anyone after a used SUV in 3-4 years will probably still look for a diesel first. If you intend to keep it for 3+ years, the depreciation curve should start levelling out.
Figure out what the depreciation would be in a normal market, say £3k per year ? If you are happy with that and it is the car that best meets your needs, then buy it. Trying to guess where the market will be in 3-5 years is impossible.
Some good points made. I think one of the biggest factors will be whether I'll be keeping it short or long term. I never know until I own a car whether I gel with it or not. My criteria are a bigger boot, comfort and ease of access/egress with reasonable performance economy. The Touareg ticks an awful lot of boxes
lornemalvo said:
Some good points made. I think one of the biggest factors will be whether I'll be keeping it short or long term. I never know until I own a car whether I gel with it or not. My criteria are a bigger boot, comfort and ease of access/egress with reasonable performance economy. The Touareg ticks an awful lot of boxes
I can't see diesel going anywhere any time soon because HGV's are still a fair bit away from going EV and even when they do the cost will be prohibitive for many smaller companies. As petrol and diesel prices continue to rise I can see economy becoming a key factor, so diesels should still be desirable - so long as they are ULEZ compliant. The only thing which puts me off a diesel is the DPF, but if doing the mileage then that shouldn't be a huge issue. My focus is on the car doing what I need/want it to do reliability. Depreciation is way down the list of concerns.
I think the market for small diesels cars will be impacted more, with petrol, hybrids and electric options being more desirable.
the big engined exec cars / SUVs with 3.0+ diesel engines will continue to make sense for most buyers doing average mileages in terms of running costs etc.
OP for your scenario, I thinks its how long you intend to own the Tourag that will determine how much of a hit if you take if its short term (as you would for most type of cars) or if keeping longer and the depreciation balances out a bit more. I would still expect SUVs under 10 years old like the Tourag, Cayenne, X5 etc still be desirable with 3.0+ diesel engines. The ones with 2.0 4 pots less so.
the big engined exec cars / SUVs with 3.0+ diesel engines will continue to make sense for most buyers doing average mileages in terms of running costs etc.
OP for your scenario, I thinks its how long you intend to own the Tourag that will determine how much of a hit if you take if its short term (as you would for most type of cars) or if keeping longer and the depreciation balances out a bit more. I would still expect SUVs under 10 years old like the Tourag, Cayenne, X5 etc still be desirable with 3.0+ diesel engines. The ones with 2.0 4 pots less so.
lornemalvo said:
I posted this in the car salesman thread, but it's buried in another discussion, so have posted it here. I'm thinking about buying a 2 year old Touareg TDI. Depreciation wise, are cars like this expected to fall off a cliff? Would it be financial madness?
nah, I reckon it'll be fine. If it's only 2 years old then it's still ULEZ compliant, and a practical, large SUV for those with large families will remain popular, especially a perceived quality product like a VW Touareg. People predicting a "market correction" don't know whether that will happen - they can't predict the future, nobody can. As a counterpoint, I predict cars will start depreciating again, but there won't be any kind of massive drop or "correction", especially as supply of new cars is still severely limited.
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