My car is now 3 years old and when I bought it (Seat Altea XL 2.0tdi Stylance) the book price was about £17.5k but I paid £14900 for it (brand new).
At the time the choice was between this or a 1 year old Honda CRV diesel for the exact same money.
Just had a look at some sites and my car would probably retail for about £8500 or so now, but the CRVs from the 06 plate era, with 10k more miles than mine are retailing for about £10.5k !
So over the 3 years, mine has depreciated a minimum of £6.5k but more if you take the list price or even the trade in price I would actually get. The CRV has depreciated just over £4k.
So the moral is, even if getting a near £3k discount on list price, some new cars still plummet further in value compared to used.!! I suppose its best to buy a 1 year old car as any discounts the supplier is giving on new cars will automatically be fed down the line on the values of the 1 year old car?
I guess I always knew this, its just that when you are able to sit down 3 years down the line and compare like for like then it becomes so much more obvious!
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Depreciation is a reflection of how popular a car is on the second-hand market. In this case it would appear that an '06 CRV is more popular than an '07 Seat Altea XL.
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Looking at cars on the company scheme recently I notice I could get a BMW 5-series SE 2.0 diesel for £3pm more than an Audi A4 SE TDIe. All down to holding value better I guess. But I could get say a VW Passat CC for £30pm less than the Audi. And an Octavia L&K would save me a fair bit.
Decisions decisions.... note I have not taken list price and emissions into account for costs. This is the monthly lease costs.
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oh no don't mention lease companies .....:)
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youve forgotten the fact BobbyG that you bought the car you wanted not the car that would hold its spondies better
just imagine if you did buy the honda rather than the ugly seat and how sick you would feel every time you twitched your curtains for a view ;-0
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BB, you are not too far away there, every time I see the older style CRV I think, what if as I still think the external looks great.
But then I remember why I didn't, didn't like the dash, the radio resembled something out the old the Philips that old Vauxhalls used to come with, no steering wheel audio controls, no aux in socket. no variable intermittent wipe and another couple of items that slip my mind just now that made me say no to it.
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In fact IIRC it was Manatee who gave me loads of information on the CRV at the time as he was running the same model!
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>> In fact IIRC it was Manatee who gave me loads of information on the CRV
>> at the time as he was running the same model!
He still is! 83,000 and five years old this year. A bit scarred in the parking wars but otherwise fine.
I can scarcely believe that was 3 years ago Bobby!
Last edited by: Manatee on Wed 21 Jul 10 at 18:40
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I've always been surprised that whatcar etc don't quote the retained value as a % of their 'target price' - that would be much more useful than the list price.
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What is certain to depreciate is a radical facia design and a steering wheel with knobs and buttons all over it to turn on the subdued hedge lighting in the rose garden and order up an orchestra to play the prelude to Lohengrin. Especially when grit gets in the works and the little springs wear out so you have to hotwire half the devices to cheap toggle switches screwed into an awkward place on the facia.
What won't depreciate at all is an endearingly gauche, old-fashioned facia with round dials, full instrumentation and simple rugged switches and controls; properly angled and placed seat, pedals and steering column; and a nice discoloured woodrim steering wheel with alloy spokes.
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like this
classic design
www.TinyURL.com/32j2hzl
fixed the link for you
Last edited by: Pugugly on Wed 21 Jul 10 at 17:16
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>> classic design
Endearingly gauche all right bb and plenty of dials to annoy Number Cruncher, but, cough, an automatic Riley? One can only hope if it's a badge-engineered Farina thing then it's the six-cylinder one and certainly not an Elf or anything like that.
The last of the genuine Riley-engineered big Rileys, the Pathfinder, was used by some police forces I seem to remember. But it wasn't a successful model and perhaps fell victim to some boardroom politics as the BMC expanded to become BL. After that though Rileys were the same as Wolseleys but with different trim and perhaps a few more BHP.
But the last real Riley Rileys were the 2.5 and 1.5 litre models of the early fifties. The 2.5 was quite a rapid car and also used by the police although the engine was a four-cylinder twin-cam sporting thumper. I think it had a torsion bar front end too.
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"What is certain to depreciate is a radical facia design and a steering wheel with knobs and buttons all over it to turn on the subdued hedge lighting in the rose garden and order up an orchestra to play the prelude to Lohengrin. Especially when grit gets in the works and the little springs wear out so you have to hotwire half the devices to cheap toggle switches screwed into an awkward place on the facia.
"
Cough.
My Yaris has an electronic dashboard and steering mounted stereo controls. They all work despite being 7 years old. My son's Yaris is 10 - his all works as well.
Strangely enough, depreciation is low as well.
Of course, if you buy a French or Italian car or a Mercedes, your commenst are true..
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Well yes madf, OK, we didn't have the Japanese back then though, not like that anyway...
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The other great depreciation contributor are options, most are worth zilch as soon as you drive off or are worth pennies come trade-in, the only exceptions being metallic, auto and leather trim (aircon being standard these days). Most leasing companies depreciate (and charge for) all other options over the term of the lease, it still astounds me that colleagues will pay £2K of their own money for fancy satnav and phone systems which will return to the leasing company at the end of the lease - each to their own.
As for depreciation, I've posted recently (too much) on Kias and Hyundais - their future residuals will be interesting as their lower purchase price won't necessarily make them cheaper than more expensive machinery over 3 or even 5 years.
Having said that, we've got to dispose of SWMBO's 7 month old Golf as we're going abroad for a while and the depreciation on that (supposedly desirable model) isn't pretty.
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Someone I know was bragging his Merc E class would retain a larger percentage of it's value over three years than a car like a Mondeo. I then did the maths for him to point out he'd still probably lose more money though ;-) He hadn't thought of it like that.
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>>So the moral is, even if getting a near £3k discount on list price, some new cars still plummet further in value compared to used.!! I suppose its best to buy a 1 year old car as any discounts the supplier is giving on new cars will automatically be fed down the line on the values of the 1 year old car?
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The cars that are discounted are usually the less popular ones, so will be subject to higher depreciation.
Discounts are not always fed down to one year old cars - when I bought my A4 Cab I managed to get a new factory order for only a few hundred more than the year old ones.
Dealer did tell me that some options were esential for resale such as Leather - said they wouldn't be able to sell one used without it, but the rest of the options would only retain about 10% of their cost
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I had a similar dilemma when I bought my 53 plate 2.0T Vectra SRi at 6 months old with 4k on it. The other cars being seriously considered were an 02 Jag X Type 2.0V6 SE with 18k and a 52 plate Volvo S60 2.0T ex demo with 10k. IIRC.
Not sure if either of those would be worth more now but I bought the Vauxhall on the basis that it was newer, less miles and still ticked all the boxes for me. It still does.
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Depreciation doesn't really matter if you decide to keep it. If it's going fine and suits your needs I wouldn't bother to sell it on. The best value it could give you is the next seven or more years of service.
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Humph, well this is the first time I have kept the main family car for more than 3 years, intend to keep it at least another 2. Even bought an extended warranty to hopefully cover all these disasters that happen to modern diesels....
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>> extended warranty to hopefully cover all these disasters that happen to modern diesels....
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Pick ups 3 in Sept, doesn't time fly, and i hope i'm making the right choice too by not paying around £750+ for a years extra warranty, too steep but i would if that were for 2 years.
Hope Kia/Hyundai start doing pick ups sometime, TBH wouldn't say no to a new Sorento.
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warranty for mine was £340 payable over 10 months interest free payments.
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Depreciation after 3 years - Boxsterboy
