Why do some cars depreciate so much?
Discussion
I thought depreciation was mostly down to supply/demand and reliability etc.
Take the fiat grande punto, its a fiat yes but its a good car, reliable, good looking, and judging by the amount you see on the road compared to the amount for sale its a popular car.
Yet you can pick up 2007 ones for pennies compared to what they cost new.
Why?
Take the fiat grande punto, its a fiat yes but its a good car, reliable, good looking, and judging by the amount you see on the road compared to the amount for sale its a popular car.
Yet you can pick up 2007 ones for pennies compared to what they cost new.
Why?
There's a lot of historical drag on depreciation figures, as they represent the opinions of second hand car dealers who will suck air through their teeth and say "it's an Italian car out of warranty - I'll give you a tenner".
Oddly it's not always the case though. A 2004 Fiat Panda is still £2k, for a car that was only £6.5k when new.
Oddly it's not always the case though. A 2004 Fiat Panda is still £2k, for a car that was only £6.5k when new.
tyranical said:
I thought depreciation was mostly down to supply/demand and reliability etc.
Take the fiat grande punto, its a fiat yes but its a good car, reliable, good looking, and judging by the amount you see on the road compared to the amount for sale its a popular car.
Yet you can pick up 2007 ones for pennies compared to what they cost new.
Why?
You've answered your own question!Take the fiat grande punto, its a fiat yes but its a good car, reliable, good looking, and judging by the amount you see on the road compared to the amount for sale its a popular car.
Yet you can pick up 2007 ones for pennies compared to what they cost new.
Why?
Another way of looking at it, is when a car is new the price is determined by the manufacturer dealers.
Yes, i know there are discounts but we are not comparing to that. Once the car is on the second-hand market, as said before supply/demand comes in to the equation (and this is driven by other fundamentals like how they compare to other cars in terms of reliability, running costs, desirability etc.)
With the 3yr old Punto as an example, how does it compare to a Focus or similar cars? (I'd rather have a Focus!) Actually, just having a quick browse shows me that £5k will bag me an '08 1.6 Focus vs a 1.4 Fiat.
Yes, i know there are discounts but we are not comparing to that. Once the car is on the second-hand market, as said before supply/demand comes in to the equation (and this is driven by other fundamentals like how they compare to other cars in terms of reliability, running costs, desirability etc.)
With the 3yr old Punto as an example, how does it compare to a Focus or similar cars? (I'd rather have a Focus!) Actually, just having a quick browse shows me that £5k will bag me an '08 1.6 Focus vs a 1.4 Fiat.
Edited by fido on Saturday 26th February 10:28
fido said:
Another way of looking at it, is when a car is new the price is determined by the manufacturer dealers.
Yes, i know there are discounts but we are not comparing to that. Once the car is on the second-hand market, as said before supply/demand comes in to the equation (and this is driven by other fundamentals like how they compare to other cars in terms of reliability, running costs, desirability etc.)
With the 3yr old Punto as an example, how does it compare to a Focus or similar cars? (I'd rather have a Focus!) Actually, just having a quick browse shows me that £5k will bag me an '08 1.6 Focus vs a 1.4 Fiat.
Which sort of contradicts your point, doesn't it?Yes, i know there are discounts but we are not comparing to that. Once the car is on the second-hand market, as said before supply/demand comes in to the equation (and this is driven by other fundamentals like how they compare to other cars in terms of reliability, running costs, desirability etc.)
With the 3yr old Punto as an example, how does it compare to a Focus or similar cars? (I'd rather have a Focus!) Actually, just having a quick browse shows me that £5k will bag me an '08 1.6 Focus vs a 1.4 Fiat.
Edited by fido on Saturday 26th February 10:28
fido said:
Another way of looking at it, is when a car is new the price is determined by the manufacturer dealers.
Yes, i know there are discounts but we are not comparing to that. Once the car is on the second-hand market, as said before supply/demand comes in to the equation (and this is driven by other fundamentals like how they compare to other cars in terms of reliability, running costs, desirability etc.)
With the 3yr old Punto as an example, how does it compare to a Focus or similar cars? (I'd rather have a Focus!) Actually, just having a quick browse shows me that £5k will bag me an '08 1.6 Focus vs a 1.4 Fiat.
If they are clean and have average miles - I'll take a dozen.Yes, i know there are discounts but we are not comparing to that. Once the car is on the second-hand market, as said before supply/demand comes in to the equation (and this is driven by other fundamentals like how they compare to other cars in terms of reliability, running costs, desirability etc.)
With the 3yr old Punto as an example, how does it compare to a Focus or similar cars? (I'd rather have a Focus!) Actually, just having a quick browse shows me that £5k will bag me an '08 1.6 Focus vs a 1.4 Fiat.
Edited by fido on Saturday 26th February 10:28
Style/Zetec doesnt matter.
davepoth said:
There's a lot of historical drag on depreciation figures, as they represent the opinions of second hand car dealers who will suck air through their teeth and say "it's an Italian car out of warranty - I'll give you a tenner".
As flattered as I am that you think us dealers decide market prices I'm afraid that's just not true, the prices a dealer offers is decided by what he can get for the car when he sells it on again, simple supply and demand.Gassing Station | General Gassing | Top of Page | What's New | My Stuff