How much does depreciation sway your buying choices?
Discussion
Hi PH community,
I’m in my 20s and looking at buying my first sports car in the £10–15k range. It’ll be a daily, probably 12–15k miles a year, and I’d expect to keep it around 5 years.
How much do you usually factor depreciation into the decision when comparing cars like this? Do you properly try to estimate it up front, or is it more of a “rough feel” thing?
At the moment I’m leaning towards something like a Mazda MX-5 RF or a GT86, but struggling to tell how much the long-term cost difference actually matters.
Interested to hear how others approach it.
Cheers
I’m in my 20s and looking at buying my first sports car in the £10–15k range. It’ll be a daily, probably 12–15k miles a year, and I’d expect to keep it around 5 years.
How much do you usually factor depreciation into the decision when comparing cars like this? Do you properly try to estimate it up front, or is it more of a “rough feel” thing?
At the moment I’m leaning towards something like a Mazda MX-5 RF or a GT86, but struggling to tell how much the long-term cost difference actually matters.
Interested to hear how others approach it.
Cheers
I generally don't because I buy at a point where I think the main depreciation is done.
I bought a 2019 MX5 RF and managed to get the price down to where I thought it was cheap enough. It meant more miles on the clock and not a garage queen low miler but I do low miles anyway so it averages out.
You can get an early MX5 ND for well under 10k these days and when you come to sell, a 2 seater sports car with negligible storage space is going to be harder to shift so it's not just a question of depreciation, it's a question of volume of potential buyers, in a few years.
I bought a 2019 MX5 RF and managed to get the price down to where I thought it was cheap enough. It meant more miles on the clock and not a garage queen low miler but I do low miles anyway so it averages out.
You can get an early MX5 ND for well under 10k these days and when you come to sell, a 2 seater sports car with negligible storage space is going to be harder to shift so it's not just a question of depreciation, it's a question of volume of potential buyers, in a few years.
It was a minor factor for me when deciding between a Jag F-Type and an Evora. F-Type values had been dropping a few years ago, so my man maths was thinking that a £25k F-Type would be cheaper to buy but would depreciate £5k over a few years. So I spent £5k more to get the Evora which I predicted would not depreciate.
Both actually seem to have kept their value.
Ultimately I chose on dynamics.
Forget using depreciation as a metric for a heart vs head sports car choice. Go with what you gel with and what gets the pulse going (and GT86/BRZs are flawed but fab).
Both actually seem to have kept their value.
Ultimately I chose on dynamics.
Forget using depreciation as a metric for a heart vs head sports car choice. Go with what you gel with and what gets the pulse going (and GT86/BRZs are flawed but fab).
Deprecation has never been a factor in a car purchase.
You can’t predict how the market will go in 5 years time.
Buy the car you want and enjoy it.
It won’t be worthless after 5 years so you’ll get something back, but you’ll also have 5 years of enjoyment, possibly some good road trips etc.
You can’t predict how the market will go in 5 years time.
Buy the car you want and enjoy it.
It won’t be worthless after 5 years so you’ll get something back, but you’ll also have 5 years of enjoyment, possibly some good road trips etc.
It's always been really important in my choices. It's quite irrational as I can't really do anything about it apart from trying to buy well but the lower the depreciation, the more I enjoy the car, even though it's only crystallised when I sell.
I think I have done really well over the years, through a combination of luck, a bit of research and perhaps good marketing when I sell privately. It's become a sort of sideline of its own really.
I think I have done really well over the years, through a combination of luck, a bit of research and perhaps good marketing when I sell privately. It's become a sort of sideline of its own really.
It never entered my mind when I was in my 20s, I just wanted to keep moving onto the next newer and better car!
40 or so years later I still just buy what I want and if it doesn't depreciate that's just a bonus. Life's too short to worry about depreciation.
Although GT86 prices do seem to be holding up pretty well.
40 or so years later I still just buy what I want and if it doesn't depreciate that's just a bonus. Life's too short to worry about depreciation.
Although GT86 prices do seem to be holding up pretty well.
I always buy at around five or more years old, keep for 3-5 years, and do the same again. Gets me something nicer than if I was buying new. The wife gets newer cars but hangs onto them for 5 or so years so depreciation is really quite low. We both do low mileage so prefer to avoid the depreciation on a brand new car.
A little.
I'm unlikely to buy a car i know has a lot of depreciation still to come. Therefore its unlikely ill own any car newer than 10 years old... about 12 years old seems to be my sweetspot for buying.
Then once ive got it, try and hold on to it until average depreciation is £500 a year.
Bought a BMW 330d for £5k 5 years ago... that's probably depreciating £500 a year, same as my boxster.
There are a few cars if bought sensibly won't depreciated at all... early boxsters have stabilised and are now sold on condition, not age.
I'm unlikely to buy a car i know has a lot of depreciation still to come. Therefore its unlikely ill own any car newer than 10 years old... about 12 years old seems to be my sweetspot for buying.
Then once ive got it, try and hold on to it until average depreciation is £500 a year.
Bought a BMW 330d for £5k 5 years ago... that's probably depreciating £500 a year, same as my boxster.
There are a few cars if bought sensibly won't depreciated at all... early boxsters have stabilised and are now sold on condition, not age.
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