Car depreciation losers

[TotalControl]

Seen this on MSN. How true is this of cars in the classifieds/ currently for sale?

http://cars.uk.msn.com/features/used-car-guide/pho...

[kambites]

That Phaeton:

Price new: £78,200
Predicted price after 12 months/10,000 miles: £29,023
Amount lost: £49,177 (62.9%)


63% of its value in one year?!?

[RichTT]

Seems reasonably credible. I lost £4k on my wife's TT in 12 months not including the £700 or so the stealers charged for water pump/timing belt and of course £400 for two rear tires and petrol costs. Biggest purchase mistake I've ever made.

[Efbe]

surely this should just say all new cars??

it does make me laugh though, when people care so much about an extra group insurance, or 1 or 2 more mpg, when their car is just going to depreciate by 10k in a year.

still, don't stop doing it, because it leaves more used cars out there for me to buy with little or no depreciation worries!

[WeirdNeville]

Efbe said:

surely this should just say all new cars??

it does make me laugh though, when people care so much about an extra group insurance, or 1 or 2 more mpg, when their car is just going to depreciate by 10k in a year.

still, don't stop doing it, because it leaves more used cars out there for me to buy with little or no depreciation worries!

This.

Drive a car off of the forecourt, and you might as well bin a Grand. Any car. Even an appreciating a classic, because by starting it up, you've de-valued it.

I love buying cars at the end of their life cycle, I feel I've had great value for money motoring.

For example:
Nissan 200SX, Bought for £4,100, sold 2 years and 15,000 miles later for £3,300. That's £800 depreciation.
1988 Toyota MR2. Bought for £1,650, sold 2 years and 14,000 miles later for £1,650.
Just bought a leggy BMW 328i which is lovely for £700, I'll be happy to weigh it in for scrap if it fails it's next MOT in a big way, but I suspect it won't. I've already done 7,000 miles in it.

I can't understand anyone except the super-rich buying a new car - it just makes no financial sense whatsoever.

But please, keep doing it. I'll have your car in 12 years or so!

[whoami]

These lists are as depressing as they are inaccurate.

[Efbe]

WeirdNeville said:

This.

Drive a car off of the forecourt, and you might as well bin a Grand. Any car. Even an appreciating a classic, because by starting it up, you've de-valued it.

I love buying cars at the end of their life cycle, I feel I've had great value for money motoring.

For example:
Nissan 200SX, Bought for £4,100, sold 2 years and 15,000 miles later for £3,300. That's £800 depreciation.
1988 Toyota MR2. Bought for £1,650, sold 2 years and 14,000 miles later for £1,650.
Just bought a leggy BMW 328i which is lovely for £700, I'll be happy to weigh it in for scrap if it fails it's next MOT in a big way, but I suspect it won't. I've already done 7,000 miles in it.

I can't understand anyone except the super-rich buying a new car - it just makes no financial sense whatsoever.

But please, keep doing it. I'll have your car in 12 years or so!

haha, you have the same idea a me. bought a leggy 328i touring 3 months ago, and always had the scrap value in the back of my head when buying it. even if it only makes a year or two I won't be to sad!

[R1 Loon]

I get a brand new car every 3 years, current one is a BMW 335Ci, last one was an Audi S4. The good news for me is that my employers buy it, run it, insure it and maintain it for me all at zero cost to me. They even register it in my name so that I don't have to pay company car tax.

Beat that for depreciation.

[Biker's Nemesis]

R1 Loon said:

I get a brand new car every 3 years, current one is a BMW 335Ci, last one was an Audi S4. The good news for me is that my employers buy it, run it, insure it and maintain it for me all at zero cost to me. They even register it in my name so that I don't have to pay company car tax.

Beat that for depreciation.

Well, how much will your 335Ci be worth in 3 years? I assume you've missed the point of this thread!

[whoami]

R1 Loon said:

I get a brand new car every 3 years, current one is a BMW 335Ci, last one was an Audi S4. The good news for me is that my employers buy it, run it, insure it and maintain it for me all at zero cost to me. They even register it in my name so that I don't have to pay company car tax.

Beat that for depreciation.

What about benefit in kind?

[R1 Loon]

whoami said:

R1 Loon said:

I get a brand new car every 3 years, current one is a BMW 335Ci, last one was an Audi S4. The good news for me is that my employers buy it, run it, insure it and maintain it for me all at zero cost to me. They even register it in my name so that I don't have to pay company car tax.

Beat that for depreciation.

What about benefit in kind?

Highlighted in bold above for you.

Biker's Nemesis said:

Well, how much will your 335Ci be worth in 3 years? I assume you've missed the point of this thread!

Don't know, don't care, I'll be too busy speccing up whatever new one I want

[Biker's Nemesis]

R1 Loon said:

Don't know, don't care, I'll be too busy speccing up whatever new one I want

Thats not helping the poor sods that buy their own cars from new though is it.

[whoami]

R1 Loon said:

whoami said:

R1 Loon said:

I get a brand new car every 3 years, current one is a BMW 335Ci, last one was an Audi S4. The good news for me is that my employers buy it, run it, insure it and maintain it for me all at zero cost to me. They even register it in my name so that I don't have to pay company car tax.

Beat that for depreciation.

What about benefit in kind?

Highlighted in bold above for you.

Biker's Nemesis said:

Well, how much will your 335Ci be worth in 3 years? I assume you've missed the point of this thread!

Don't know, don't care, I'll be too busy speccing up whatever new one I want

Yes I saw that.

However, you are being provided wirh a benefit that you are legally liable to pay no tax on?

No chance.

[R1 Loon]

Biker's Nemesis said:

R1 Loon said:

Don't know, don't care, I'll be too busy speccing up whatever new one I want

Thats not helping the poor sods that buy their own cars from new though is it.

Let them eat cake.

[Biker's Nemesis]

R1 Loon said:

Biker's Nemesis said:

R1 Loon said:

Don't know, don't care, I'll be too busy speccing up whatever new one I want

Thats not helping the poor sods that buy their own cars from new though is it.

Let them eat cake.

That'll come back to bite you on the bum.

[CraigyMc]

whoami said:

you are being provided wirh a benefit that you are legally liable to pay no tax on?

No chance.

Tax fraud is possible, as is the possibility that he is somewhere with a loose tax regime?
C

[Biker's Nemesis]

CraigyMc said:

whoami said:

you are being provided wirh a benefit that you are legally liable to pay no tax on?

No chance.

Tax fraud is possible, as is the possibility that he is somewhere with a loose tax regime?
C

England!

[whoami]

CraigyMc said:

whoami said:

you are being provided wirh a benefit that you are legally liable to pay no tax on?

No chance.

Tax fraud is possible, as is the possibility that he is somewhere with a loose tax regime?
C

Which part of the UK is that?

[R1 Loon]

whoami said:

Yes I saw that.

However, you are being provided wirh a benefit that you are legally liable to pay no tax on?

No chance.

I'm no Accountant, have a read of this

http://www.hmrc.gov.uk/manuals/eimanual/eim31500.h...

All I know is that I get a car allowance of x% per month that work guarantee will be net of tax & NI (covers me if rates rise), I then pick any car I want up to that cost per month.

If I opted out, I would get an amount of 35% of the allowance and that would be taxable.

[whoami]

R1 Loon said:

whoami said:

Yes I saw that.

However, you are being provided with a benefit that you are legally liable to pay no tax on?

No chance.

I'm no Accountant, have a read of this

http://www.hmrc.gov.uk/manuals/eimanual/eim31500.h...

All I know is that I get a car allowance of x% per month that work guarantee will be net of tax & NI (covers me if rates rise), I then pick any car I want up to that cost per month.

If I opted out, I would get an amount of 35% of the allowance and that would be taxable.

So your employer is taking responsibility for not only providing you with a car (normal) but also the total tax bill of its employee too (much less normal)?

Lucky lad; make the most of it.