Thanks for your information on depreciation on Fords.

Thank you for your recommendations. I must admit surprise at the number of Fords listed, knowing how quickly they depreciate, but I like the look of the KIA Carens and I'm pleased to hear that my current Civic was a good choice in the first place. We may yet give it a slightly longer life.

Asked on 1 June 2013 by HS, via email

Answered by Honest John
Fords don't depreciate quickly if bought at the right price in the first place, typically at a 20 per cent discount for standard ‘fleet’ models. The cash depreciation of a Ford can actually be lower than on a low percentage depreciator because of the misleading way in which percentage depreciation is expressed to benefit the fleets. It’s always based on ‘list price’, despite the fact that most high end Audis, BMWs and Mercedes-Benz' are bought with between £5000 and £20,000 of options.

This pulls up what people are prepared to pay for them used. And means that a high-end German car listed at £50,000 with 3-year residual percentage of 50 per cent will be worth £25,000, even though, with £10,000 of extras it originally cost £60,000 and the total loss was £35,000. Contrast that with a Ford listed at £30,000 with a three year residual of 35 per cent that will be worth £10,500, but may have been bought at a 20 per cent discount of £6000. Despite the residual of 35 per cent, that car has lost £13,500, which is true residual of 52 per cent.
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