Does anyone know of any websites that are free that will give the real depreciation of a car over say 1 to 6 years. I am starting to look for a new motor, at the moment I lease, but it occured to me that I could buy some cars "possibly" on a 5 year loan to keep the payments down then sell it at 3 years, pay off the loan and then start again. Maybe I am totally wrong and it's a bad idea, if so please let me know as I obviously don't want to make a mistake on something like this. I can borrow at about 5% fixed at the moment the rate on my lease is more like 9.9%
Thanks
Bill
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My £15000 car lost £6000 in its first year!
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Does anyone know of any websites that are free that will give the real depreciation of a car over say 1 to 6 years.
Try www.whatcar.com/DepreciationIndex.asp
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Thanks for the URL, makes interesting reading when you can compare them like that.
On another point does anyone know of a site that tells you which cars depreciate least to worst so that you can see them on mass so to speak?
Thanks
Bill
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Thanks for the URL, makes interesting reading when you can compare them like that.
The Year0 figures seem a bit misleading, because they appear to be based on RRP. Does anyone pay RRP for, say, a mass-market Ford, let alone a Citroen?
The longer term values are still interesting.
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Ever thought about buying a 1 to 2 year old car at auction? At least a large chunk of the initial depreciation will have been paid for by someone else.
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This sort of idea was used in the 60's by a friend of my Dad's who bought Spitfires, keep them for two years and traded them in for a new one. This lasted a few years then it became more expensive for every change to keep the hp payments going. my father in law wrote off his 2 year old Rover 75 with 6000 miles on the clock and was offered £8900 by the insurance Co. This was a capital loss in the order of £10,000! ouch.
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I don't think I would ever buy new again. Nearly new is the better route, I think, because you get a car which has been used little and will cost a lot less money.
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Hope you wouldn't choose the depreciation as MAJOR consideration - you'll be better rewarded, in ownership value, 'cos it was the car YOU wanted - not some guesstimate of it's future value.
A good guide, would be to look at leasing companies figures, they'll have done their sums, to maximise residual, as well as operating costs.
But, as HJ showed, a month or two back, some surprises can come along, depending on current 'fashions'.Remember the Nissan 4x4 making better return, compared to the BMW 3 series, in the same auction report!!??
Even MINI is losing it, too, somewhat!!
So best go get a new model Mx5!! Local dealer already sold their commitment to year end!!
VB
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I agree with Carl2 about buying a 2 year old at auction. The other way to minimise depreciation is to keep the car longer. Service it by the book. Get parts like exhausts and batteries with a mind to keeping the car - that is the best value not the cheapest. A well looked after car should do at least ten years with minimal repairs needed, assuming average mileage. That makes for cheap motoring.
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The problem with choosing the "best depreciator" is that you are hunting for a moving target. All that the tables can tell you today is what was the best depreciator over the last 'n' years. What we really want to know is what will be the best over the next 'n' years. And, while you're at it, I'll have next week's lottery numbers too, please ;-)
Take colour, for example. For ages, everyone said to choose silver. So everyone did. And, surprise, surprise, used car lots are now stuffed full of silver cars at a time when black is the new silver. No prizes for guessing what will happen in 4-5 years.
Be aware of the numbers, but choose the car you want. Don't choose a car you don't want just because someone reckons that a buyer will want in a few years' time.
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Rather like the 'Health Warning' for stocks and shares, past performance is no guarantee for future results.
When there was a 1-2 year waiting list for RHD Mercs in UK you could almost guarantee selling a year old car for very close to list price; and this reflected in the prices for cars several years old. It was almost standard practice for some people to take deliver of a new car and order the next one at the same time.
Mercedes starting bringing in a lot of RHD cars and second-hand prices have suffered.
Morgan restrict the number they build and it is surely only their rarity that has kept second-hand prices high.
So buy a Morgan!!
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This is fun!
A renault Vel Satis 3.5 V6 privilege loses £15,849k of the £28k purchase price in year 1. That's £43 A DAY! Anyone found any worse?
Alex.
--
Dr Alex Mears
Seat Leon Cupra
If you are in a hole stop digging...unless
you are a miner.
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>>Be aware of the numbers, but choose the car you want. Don't >>choose a car you don't want just because someone reckons that >>a buyer will want in a few years' time.
Very sound advice. There are so many posters on this forum enquiring after depreciation figures that i do wonder if they are more interested in those figures than the car itself.
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P 2051,
Its not that I am totally driven by the depreciation but it is something that needs to be factored in.
Having looked at the What Car depreciation charts, the car I am looking at will be about 1 year old and will have first year deprectiation much higher than an other I could have chosen. Deprecitation after that is within 1.5%. I will probably buy it over 5 years fully financed, sell it at 3 years and hopefully get about £3500 from the deal after paying off the finance. As an example £18,000 over 5 years is £343 per month. I sell the car and pay off the rest of the loan which leaves me with £3500 based on figures from various sites, thats £3500/36 months = £97. £97 from the £343 = £246 per month real payments, not allowing for any interest I could have earned etc, etc. So I get to drive a £28,000 car for 3 years for £246 per month or £2950 per year. This works out at £29 month more than I am paying for my 2.2 DCi Primera on lease. There is probably a big flaw in this, but neither I or my work collegues can see it. Maybe you or someone else can, I hope you do, so I don't make an expensive mistake.
Bill
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