Depreciation!
- Thread starter Kettleboy
- Start date
I've just got £9.2k off new 28i paying cash no finance. Few months examples on approved used are going for pretty much the same, of course px would be less.... I'm not expecting to be able to cash out at a profit in 6 months but I'm not going to lose that much in first year. That being said providing I like the car I'll keep it for a while, my current car I've had 9 years.....
Depends what you want at the end of the day, I enjoy a brand spanking new motor, new or secondhand you will lose, you don't buy for investment :roll: Its a great feeling seeing your new car delivered, sat in the showroom gleaming waiting for you, no-one else has thrashed it, kerbed it, farted or picked their nose it and that new car smell, lovely. For those that grumble that they spend 50k and there motor is worth peanuts after 3 years, no-one forced you to buy new, we all know cars plummit in value 
I look at it as a little treat for hard work in life. No different than wasting money on booze, fags, cruises or other luxuries in life.
Tim.
I look at it as a little treat for hard work in life. No different than wasting money on booze, fags, cruises or other luxuries in life.Tim.
I have noticed the residuals of new BMWs is a little on the harsh side. Primarily because the kind of people who buy them love to have the latest thing. The residuals on the Audi's are pretty good. I haven't given an Audi owner a p/x value they have been dissapointed with/below expectations (unless they've kept it like a shed) for quite some time...
New cars turn out very good on PCP agreements if you keep a car for 3-4 years then swap out. But as a sales exec, I have always bought roughly 4 yr old used cars outright/using funding offers with early withdrawal benefits. Don't write off used car finance - even though the rates may be a little high, you can get incentives like service plans because the dealerships are struggling to match the new car offers - just don't expect a great deal for "cash" because that is a load of s*** that webuyanycar etc. keep pushing so they can pinch your car cheap.
One thing I don't like though is the culture of "nobody pays list". This is a lie - it all depends on their stock flow and how many they have to shift. I will do you a cracking deal on a New A6 we have in stock - but you'll be lucky to get squat-diddly off a Q5.
...yours truly from the ultimate insider :wink:
New cars turn out very good on PCP agreements if you keep a car for 3-4 years then swap out. But as a sales exec, I have always bought roughly 4 yr old used cars outright/using funding offers with early withdrawal benefits. Don't write off used car finance - even though the rates may be a little high, you can get incentives like service plans because the dealerships are struggling to match the new car offers - just don't expect a great deal for "cash" because that is a load of s*** that webuyanycar etc. keep pushing so they can pinch your car cheap.
One thing I don't like though is the culture of "nobody pays list". This is a lie - it all depends on their stock flow and how many they have to shift. I will do you a cracking deal on a New A6 we have in stock - but you'll be lucky to get squat-diddly off a Q5.
...yours truly from the ultimate insider :wink:
I believe buying a car like a Zed is not necessary. If I was worried about running costs and depreciation I wouldn't by such a car. Having a nice car and modding it is a hobby for me. All hobbies cost money. To work out how much that hobby is costing would be complicated. You could work out the depreciation and running costs of your Zed then minus what it would of cost to be practical and buy a small family hatch. You would then know how much extra it has cost. I'm not that bothered but if someone wants to work it out I'd be interested. Oh and I don't drink so you can take a bit off for that too
I bought my z4 coupe just over 4 years old....it had done 24k, bought it for >£25k less then the original owner paid (i have the receipt)
Given the price of fuel over last 5 years ~£1.15p/litre, mpg average 32 (optimistic)
Maths:
24,000 miles / 32mpg = 750 gallons
750 gallons x 4.55 = 3400 litres = ~£4000 in fuel alone
In summary just in fuel and depreciation previous owner lost ~ £30,000/ 24000 miles = £1.25/mile. Thats not including tax, insurance, servicing.....
Given the price of fuel over last 5 years ~£1.15p/litre, mpg average 32 (optimistic)
Maths:
24,000 miles / 32mpg = 750 gallons
750 gallons x 4.55 = 3400 litres = ~£4000 in fuel alone
In summary just in fuel and depreciation previous owner lost ~ £30,000/ 24000 miles = £1.25/mile. Thats not including tax, insurance, servicing.....
mine isnt depreciating as i dont consider myself as owning it. i see my pcp deal as a long term rental and once its over, i can buy the car for a reduced price if i wish...... i have a 3 year pcp plan but may return it after 2 years and buy something else. but in the meantime, the car has cost me a £500 deposit and £400 per month..... so 10k over 2 years. not a bad rental price for a brand new car worth 36k and i can accept losing that as its relatively worry free and cost free motoring with no unexpected bills