Quentin Willson writes in the Daily Mirror today about owning a 500SL for a year with no depreciation cost
Phil P writes in th Backroom about losing £3.7K in eight months on a Focus
Do I assume that QW had special circumstances and if so what was the point of his article.
Do I also assume that Phil P's depreciation cost is par for real world values.
Any depreciation evasion stategies please Back roomers
Bangernomics is one answer but I fear the unreliabilty and multi viewing involved.
Churning is another but how to do it
Regards
JF
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Yesterday's Daily Mail ran an article on a study done by Alliance and Leicester of which makes and models in each class hold their value best over a year and 3 years (See details below). It said depreciation values are linked to the volume of cars sold so although the Mondeo is one of the best sellers it's popularity means there is no shortage of secondhand vehicles and this forces the prices down. The recommendation was that buyers look for cut-price, nearly new bargains where the dealer takes the hit on depreciation.
WORST TEN OVER 3 YEARS
New Old %Fall
Ford Mondeo £14,387 £ 5,509 61.7
Fiat Punto £ 8,929 £ 3,539 60.4
Vauxhall Omega £17,530 £ 7,384 57.9
Vauxhall Vectra £13,138 £ 5,669 56.9
Nissan Primera £12,892 £ 5,675 56
Land Rover Discovery £25,032 £11,406 54.4
Ford Fiesta £ 8,941 £ 4,090 54.3
Vauxhall Corsa £ 7,548 £ 3,729 50.6
Ford Galaxy £18,519 £ 9,184 50.4
Peugeot 406 £13,204 £ 6,642 49.7
BEST TEN New Old %Fall
Land Rover Freelander £16,169 £12,532 22.5
Volvo V70 Series £21,105 £16,013 24.1
Volvo S/V40 Series £14,392 £10,812 24.9
Alfa Romeo 156 £15,011 £10,082 32.8
Saab 9.5 £22,296 £14,551 34.7
Citreon Saxo £ 6,275 £ 4,039 35.6
BMW 5 Series £25,678 £16,398 36.1
Mercedes E-Class £26,822 £17,127 36.1
Fiat Seicento £ 6,288 £ 3,971 36.9
Suzuki Wagon R+ £ 7,408 £ 4,673 36.9
So there is something good about Freelanders after all however the downside is..... over to our correspondent in Brazil.
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The new prices are the full retail price.
Hardly anybody pays this price so the figures are only a guide, not a true reflection.
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How do you stop all the figures bunching together then? Anyway the percentage falls over 3 years were:
WORST DEPRECIATION
Ford Mondeo - 61.7%
Fiat Punto - 60.4%
Vauxhall Omega - 57.9%
Vauxhall Vectra - 56.9%
Nissan Primera - 56
Land Rover Discovery - 54.4%
Ford Fiesta - 54.3%
Vauxhall Corsa - 50.6%
Ford Galaxy - 50.4%
Peugeot 406 - 49.7%
BEST DEPRECIATION
Land Rover Freelander - 22.5%
Volvo V70 Series - 24.1%
Volvo S/V40 Series - 24.9%
Alfa Romeo 156 - 32.8%
Saab 9.5 - 34.7%
Citreon Saxo - 35.6%
BMW 5 Series - 36.1%
Mercedes E-Class - 36.1%
Fiat Seicento - 36.9%
Suzuki Wagon R+ - 36.9%
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these figures assume that the full retail price is paid in the first place. Would anyone pay 16k for a 3 year old volvo?
b.t.w. what is the source for these figures?
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surprising to see Alfa, Fiat and Citroen taking top ten positions
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A company car - Zero depreciation, insuranace, servicing, MOT {well N/A if you buy new anyway}, fuel, servicing, washing etc, etc.
What about the Mazda MX5 { grey inport in DT today ?}
Alex
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So - buy a 3yr old car from the low residual value list, say Ford Mondeo or Vauxhall Omega and run it for 5 years.. Modern cars last, mechanically and bodywise, forever compared to older cars. We could put car manufacturers out of business if enough of us did this. Or at least new car prices would come down to keep their businesses going.
The other answer is to buy a new car from the high residual value list, say Saab 9-5 and keep it for 8 years. This would also put the car manufacturers out of business.
In reality the only way to take money out of manufacturers pockets and put it in our own is to keep our cars longer. Although a "typical" model is facelifted at about 4 years, models are kept in production for 7-8 years, so I think we should use that as our change point.
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I hope Roland doesn't read this...........
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The article doesn't give a source for the figures used but I think the implication is that if a car is sold in large volumes it's going to be hit more by depreciation and this will have an impact regardless of what you pay for it new or used.
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Today's Clarkson supplement in the Sunday Times quoted a Nissan Mazima(?) as losing 82% of its value in 3 years and there are a lot that lose 75%. Large Rovers, Peugeots and Renaults
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Quentin is a dealer so he buys at Trade and sells at Retail hence no depreciation.
If you can screw down the buy price for yourself then you'll have the same effect.
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