Hi
I've read loads in the press about certain cars (Mini Cab, SLK, CLK Cab, SL, Boxster, etc) have extremely low depreciation due to demand. Extremes being of people buying Mini's/SLKs, using them for a year and still getting list price.
The question I have is - is this really feasible in the real world, or is it a myth.
Do dealer margins on 2nd hand vehicles mean that although the advertised price may be the same as list, the price you actually receive when trading in isn't so good. It's difficult to work out from book/forecourt prices as most models discussed have huge (and expensive) options lists, so actual price paid is difficult to assess.
Ultimate goal (as is everyone?s) would be to change car every 6 months (9,000 miles) with zero depreciation. Common sense says it's impossible, but with 2 year waiting lists on some cars it may be possible in certain cases.
Interesting that there seems to be a familiar theme with these cars - German convertibles.
I'd like to hear what others think.
Dave
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I see one small problem here, how can you change your car every 6 months if the cars you are purchasing have a 2 year waiting list ???. You would initially have to order 4 cars in advance !
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You can get over this.
I know a few people who are such good customers of the upmarket dealerships (basically because their wives must have the latest 'must have' toy) that they can get hold of the rare models as soon as they come out and make money on them suix months later.
It can be done, but you have to develop a good relationship first. The only ones I know are in a peripheral trade to the motor trade - eg fitting alarms or audio stuff.
--
Espada III - well if you have a family and need a Lamborghini, what else do you drive?
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Zero depreciation is most likely to be found at the bottom end of the used car market. Look for cars that are at around the transition point between banger and collectable status.
Things like early Metros or Escort Mk 3's (the original front-drive Escort) are thin on the ground now and few of the remaining ones are likely to be in good condition. But spend £250 now on a reasonable example, look after the car for 2 or 3 years and you might get £500 for it!
Cheers, SS
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If you're looking for Zero depreciation, then there are a few possible ways to go about it.
1 - Auction buy - find cars that sell well priveately - Mondeos or vetras etc - sell after 6 months to a year. Try buying around or after Christmas. It's a dead time for the trade and they won't be looking for too much stock.
2 - Classic purchase. I sold a Morris Oxford in good but not mint original unrestored condition, perfectly roadworthey for £995. I paid £675 for it a few years earlier. Apart from serviceing, there was little to be done on it.
3 - Company cars. If you know anyone who regularly changes a company car (once every 2 to 3 years) the leasing company is often ready to accept offers on the old ones from or through the driver, at or less than expected auction price. Again, keep this for 6 months to a year and then sell for what you paid for it.
4 - Bottom end - Target Britains most hated cars at auction or private sale. Look for the best examples of these. eg 8 year old Maestro 1.6 30,000 miles one owner FSH - yours for £250 ono? They'll be another 8 years in that car before it gets scrapped, then you flog the spares off it!
Hugo
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Thanks for the replies, I probably should have clarified my circumstances a bit better.
Hugo, I've already been down the road(s) you suggest in the past and although well proven don't fit my current situation. I've also found that recently it's very difficult selling on Mondeos/Vectras.
I do a reasonable amount of business miles, and need a car that's going to be comfortable on long journeys and also present a 'business' image - therefore have discounted options 2 & 4.
Most people that I mix with at a business level tend to have Audi/BMW/Merc/etc type cars, and although I've driven the repmobile type cars for years feel I need to get a similar car.
Hence my thoughts around the cheapest way to run one may be a car with high residuals and long waiting lists. But keep them too long and high mileage causes huge decrease in value. Also just driving a car out of a showroom also causes huge decreases.
I was just considering if there was a happy medium,where you run one for say 6 months and hopefully sell at (or near) purchase price. Like I said originally common sense says 'no way', but press say it's easy.
Regards
Dave
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