Depreciation!

[matfrost]

I know cars take a big hit in value when you buy them but!

Just had a px valuation on my 57 plate Rav XTR D4D, 4500miles

I was offered £12750 !!!!!!!!!!! Thats about £9000 loss in 8 months!

Does that sound right?

[Fujisan]

I know cars take a big hit in value when you buy them but!

Just had a px valuation on my 57 plate Rav XTR D4D, 4500miles

I was offered £12750 !!!!!!!!!!! Thats about £9000 loss in 8 months!

Does that sound right?

Unfortunately.......YES! :(

Just ripped this from What Car valuations (for your car):

Dealer £15,780

Private £14,395

Part exchange £13,140

Trade £12,625

Cost new £21,425

And like I've said before the price guides are struggling to keep up with a market in free fall.

Also depends what you were p/ex'ing against.

[jonbr]

Does that sound right?

With the cost of fuel, increased tax and just general higher cost of living, people do not want to purchase what they see as a "gas guzzler". Thankfully, when bought ours, we decided at the time we would keep it until it went to car heaven so it’s not a problem for us :D

[Parts-King]

I know cars take a big hit in value when you buy them but!

Just had a px valuation on my 57 plate Rav XTR D4D, 4500miles

I was offered £12750 !!!!!!!!!!! Thats about £9000 loss in 8 months!

Does that sound right?

YES, and losing approx £800 per month on top of that too, please remember, the day you take the car out of the showroom you lose the VAT element (approx £2K) you will never get that back!

All is not lost, as daft as it sounds, if you are prepared to weather the storm, its actually a great time to buy a new or used RAV as 0% finance deals are available on selected models and the forecourt price is good too on used! When all the nonsense about road tax settles down, you will realise that the RAV is NOT going to be hit for six on tax like some gas guzzlers are

Kingo

[matfrost]

I know cars take a big hit in value when you buy them but!

Just had a px valuation on my 57 plate Rav XTR D4D, 4500miles

I was offered £12750 !!!!!!!!!!! Thats about £9000 loss in 8 months!

Does that sound right?

YES, and losing approx £800 per month on top of that too, please remember, the day you take the car out of the showroom you lose the VAT element (approx £2K) you will never get that back!

All is not lost, as daft as it sounds, if you are prepared to weather the storm, its actually a great time to buy a new or used RAV as 0% finance deals are available on selected models and the forecourt price is good too on used! When all the nonsense about road tax settles down, you will realise that the RAV is NOT going to be hit for six on tax like some gas guzzlers are

Kingo

I am not so sure the used prices are good. Toyota forecourt price on a used car the same as mine £18999

So if mine is worth £12750 as a px, then thats £6249 profit for the dealer, as no warranty has to be put on it as it is still under manufacturers warranty.

[RaverT180]

I know cars take a big hit in value when you buy them but!

Just had a px valuation on my 57 plate Rav XTR D4D, 4500miles

I was offered £12750 !!!!!!!!!!! Thats about £9000 loss in 8 months!

Does that sound right?

YES, and losing approx £800 per month on top of that too, please remember, the day you take the car out of the showroom you lose the VAT element (approx £2K) you will never get that back!

All is not lost, as daft as it sounds, if you are prepared to weather the storm, its actually a great time to buy a new or used RAV as 0% finance deals are available on selected models and the forecourt price is good too on used! When all the nonsense about road tax settles down, you will realise that the RAV is NOT going to be hit for six on tax like some gas guzzlers are

Kingo

I am not so sure the used prices are good. Toyota forecourt price on a used car the same as mine £18999

So if mine is worth £12750 as a px, then thats £6249 profit for the dealer, as no warranty has to be put on it as it is still under manufacturers warranty.

Hi sorry but the second hand car market is total free fall. What they have marked up on their forecourts aint what they will get if they eventually sell it ( unless its a tiddler). Pass a dealers on a Sunday in the old days and people there having a look around These days may as well shut up shop. Looks like I've lost £15k on my RAV in just two years., So gonna run it into the ground. Mind you Gawd knows how I will pay for the new set of run flat tires next year LOL!!!

[local hero]

I know cars take a big hit in value when you buy them but!

Just had a px valuation on my 57 plate Rav XTR D4D, 4500miles

I was offered £12750 !!!!!!!!!!! Thats about £9000 loss in 8 months!

Does that sound right?

I have a mate looking for a good rav, and although he can get one at the right price, he feels agrieved cos dealers are offering a pittance, for his X Trail, I must say now is a good time to buy, especially if you have no P.X.

[Fujisan]

YES, and losing approx £800 per month on top of that too,

I hope that slow's down :D

At that rate by Christmas 2009 our cars will be worth a big fat ZERO! :P

Merry Christmas Everyone!

[Hoovie]

I would think anyone who buys a car and then checks its resale price after 8 months is bound to be disappointed in what they hear :( when you look at the depreciation graph, the typical car probably looses 25% on sale day +1 ! As the time goes on, amount lost lessens every month, so you really need to take a longer term view IMO.

For example, my RAV was £19,000 new - but I bought used at 1 year and paid £14,500, It is now 3 years old and worth maybe £8,000 in todays market, so in it's first year, it lost £4,500, in years 2 & 3 lost £3,250 a year, but in next two years, even if it drops to £4,000 - which is most unlikely, that is just £2,000 a year lost in those two years.

TBH, I have always thought buying new is a little bit of a mugs game unless you are prepared to not worry about and to write off that initial depreciation hit. I reckon buying nearly new and keeping for quite a few years is the way to go.

Only car we have bought new have been the Puntos, and the last one was listed at around £11,000, but paid just under £8,000 (25% discount) and six years later it is still worth £2,500 - it probably lost a couple of thousand in year 1 but is now losing value inthe low hundreds per annum

[anchorman]

I know cars take a big hit in value when you buy them but!

Just had a px valuation on my 57 plate Rav XTR D4D, 4500miles

I was offered £12750 !!!!!!!!!!! Thats about £9000 loss in 8 months!

Does that sound right?

I have a mate looking for a good rav, and although he can get one at the right price, he feels agrieved cos dealers are offering a pittance, for his X Trail, I must say now is a good time to buy, especially if you have no P.X.

Stew

I know where this is a brand new but pre registered 08 XT5 (silver) WITH a spare wheel for £21995

Any good?

If so let me know and I will reserve it.

[john1944]

I know cars take a big hit in value when you buy them but!

Just had a px valuation on my 57 plate Rav XTR D4D, 4500miles

I was offered £12750 !!!!!!!!!!! Thats about £9000 loss in 8 months!

Does that sound right?

I have a mate looking for a good rav, and although he can get one at the right price, he feels agrieved cos dealers are offering a pittance, for his X Trail, I must say now is a good time to buy, especially if you have no P.X.

Stew

I know where this is a brand new but pre registered 08 XT5 (silver) WITH a spare wheel for £21995

Any good?

If so let me know and I will reserve it.

Anchorman,

Off the top of your head what would my XTR 07 with 14k be worth against that XT5, assuming it is a diesel ??

[anchorman]

I know cars take a big hit in value when you buy them but!

Just had a px valuation on my 57 plate Rav XTR D4D, 4500miles

I was offered £12750 !!!!!!!!!!! Thats about £9000 loss in 8 months!

Does that sound right?

I have a mate looking for a good rav, and although he can get one at the right price, he feels agrieved cos dealers are offering a pittance, for his X Trail, I must say now is a good time to buy, especially if you have no P.X.

Stew

I know where this is a brand new but pre registered 08 XT5 (silver) WITH a spare wheel for £21995

Any good?

If so let me know and I will reserve it.

Anchorman,

Off the top of your head what would my XTR 07 with 14k be worth against that XT5, assuming it is a diesel ??

John

To be honest I didn't know but I've just phoned them and it is a petrol with 5 speed manual box. Its probably academic now if you wanted a diesel but they are getting me a "ball park" price for yours. I guess it does take out a lot of the potential worries of owning a diesel -i.e. DMFs, turbos etc and that 2.0VVTi is just about bomb proof.

OK he's has just been back and is saying that he needs a lot more info but you are looking at a minimum of 12k for yours which probably stacks up with the posts above. Don't forget that as Kingo says you have lost your VAT on top of the normal depreciation.

[Parts-King]

Local Hero: I have a mate looking for a good rav, and although he can get one at the right price, he feels agrieved cos dealers are offering a pittance, for his X Trail, I must say now is a good time to buy, especially if you have no P.X.

You are correct Stew, dealers are decidedly nervous taking P/EX of what could potentially be losing them a fortune for each month it stands sitting on your forecourt. Have you had a look at our group stock? LINDOP'S USED CARS click Queensferry OR Wrexham branch to view our stocks, we deliver Nationwide

Kingo

[john1944]

I know cars take a big hit in value when you buy them but!

Just had a px valuation on my 57 plate Rav XTR D4D, 4500miles

I was offered £12750 !!!!!!!!!!! Thats about £9000 loss in 8 months!

Does that sound right?

I have a mate looking for a good rav, and although he can get one at the right price, he feels agrieved cos dealers are offering a pittance, for his X Trail, I must say now is a good time to buy, especially if you have no P.X.

Stew

I know where this is a brand new but pre registered 08 XT5 (silver) WITH a spare wheel for £21995

Any good?

Thanks for your help Anchorman; but would not entertain anything but a diesel. Will keep mine probably for ever and ever. A men.

If so let me know and I will reserve it.

Anchorman,

Off the top of your head what would my XTR 07 with 14k be worth against that XT5, assuming it is a diesel ??

John

To be honest I didn't know but I've just phoned them and it is a petrol with 5 speed manual box. Its probably academic now if you wanted a diesel but they are getting me a "ball park" price for yours. I guess it does take out a lot of the potential worries of owning a diesel -i.e. DMFs, turbos etc and that 2.0VVTi is just about bomb proof.

OK he's has just been back and is saying that he needs a lot more info but you are looking at a minimum of 12k for yours which probably stacks up with the posts above. Don't forget that as Kingo says you have lost your VAT on top of the normal depreciation.

[Robert6920]

Pass a dealers on a Sunday in the old days and people there having a look around These days may as well shut up shop.

It's been a very long time since my local Toyota dealer (McCabe) has even bothered to open on a Sunday. The days when they were open 7 days a week are long gone, IMO

[Fujisan]

A couple of articles on depreciation worth a read

First from Autocar:

"Used car values have suffered their biggest slump in over three years according to British Car Auctions.

The auctioneer’s latest report shows that the average value of a used car in the UK fell to £5332 in the second quarter of the year, a fall of £390 compared to the previous quarter. The falls took place across all the three of BCA’s market sectors: fleet & lease, part-exchange and nearly new.

Anecdotal evidence from within the motor industry suggests that some models are still selling strongly, especially nearly-new mid-sized diesels. But high fuel prices have strangled demand for large-engined petrol models, with or without premium badges, with traders reporting that some cars are effectively unsaleable.

According to BCA’s communications director, Tony Gannon, “June was a particularly tough month and we expect more of the same for July. Despite this, demand is still there for good quality product if it is valued in line with market sentiment.” "

The second by Jason Dawe from the Times:

"Emergency on Planet 4x4

The part exchange car market can be notoriously fickle. Like the butterfly flapping its wings in Brazil leading to a warm summer in the UK, there are many variables to consider. Fluctuating interest rates, rising petrol costs, spiralling inflation, taxation, demand and supply. All these factors feed back into the market and indirectly affect the desirability and value of all the vehicles in it.

Scouring the used car valuation market, organisations like CAP, EurotaxGlass and Parkers will always throw up a surprise or two, but the fun comes once you look deeper and the reasoning becomes clear. Last year it was the surprise popularity and increased demand for second hand convertibles that raised an eyebrow, as hard-top coupe cabriolets gained favour with used car customers.

Retail customer interest in the convertible market had always risen for the summer and fallen away in winter but the experts at CAP found that this fickleness had begun to reduce as people were won over by the weatherproof security offered by the new breed of folding hard-top. This led to steady turnover, strong residuals and a lot less stock sitting idly on forecourts up and down the country throughout the year.

Now it’s the turn of the 4x4, but this time the news isn’t good. Latest findings have shown that the market among used car buyers for petrol fuelled 4x4s is fast disappearing. There is a very real risk that owners may be unable to change their cars as dealers steer clear of the thirsty off-roaders – particularly those with big V8 engines – and are far less likely to take them in part exchange. Worryingly, from a dealer’s point of view, there are reports that even if they were to offer rock bottom prices for the cars then send them to auction, there is no longer any guarantee they would sell.

Andrew Harrison-Smith, owner of independent Land Rover specialist Nene Overland says that while the whole 4x4 market was facing a difficult time, depreciation on petrol 4x4s is currently very heavy. “Values for petrol engine 4x4s are £3000 or even £4000 lower than for the diesels” he told Parker’s. He suggested that owners and buyers could be hit less hard if they consider converting large petrol Land Rovers and Jeeps to run on LPG (liquefied petroleum gas).

So what to do? Certainly, if you are sat with a top of the range V8 monster perhaps now is not the best time to be considering selling, or if you are, don’t expect the return you anticipated. But what about the dealers and suppliers, who keep the market turning? The last thing they want is a compound littered with rapidly depreciating metal for the next 6 months. But when faced with a problem, sometimes it sharpens the mind and focuses the brain, and perhaps we’ve lost site of what a 4x4 is actually all about in the past few years?

Motor industry consultancy Network Automotive believes we have. Managing director Colin Bruder explained, "While soft-roaders are doing reasonably well at the moment, large 4x4 sales are suffering… the overall sector down by something like 18 per cent.”

"The factors behind this fall – high fuel prices and growing environmental concerns – are not going to go away but dealers can fight the slump by changing their sales and marketing efforts to focus on different markets. One idea is to go 'back to basics' with these models and promote them to the kind of markets where their core off-road abilities have very strong appeal – such as fire, ambulance, police and specialist public sector fleets. Here, the demand for this kind of vehicle is consistent and largely credit crunch-proof."

So can the emergency services come to the rescue and at least provide some form of stability for the market to build upon?

"Certainly, large 4x4 sales have always formed an element of these specialist fleet sales but manufacturer and dealer interest has been sporadic simply because retail demand for large and expensive off-roaders has been so strong in recent years, which has served as something of a distraction,” warned Bruder. “With that retail demand starting to plateau and probably slide in the coming months and years, we believe that there is potential for manufacturers and dealers to maximise large 4x4 sales opportunities through this route."

So if you can’t sell your Range Rover, it might be worth asking the local Police or Fire service if they would be interested. Failing that, I’m sure a TV production company would help – with the amount of detective and medical dramas they make, their fleets are probably bigger than the real thing. "

[Furious D]

We paid £10890 for our Corolla brand new in September 2003. When we traded it in for the Rav last month we were given £4500 by the dealer. OK the second hand car market is not great and it could have taken me an age to sell it privately plus it was easy. But then again in Sept it would have been 5 years old. I needed new disks on the front for sure, MOT, TAX, Service and air con regassed so there was a few quid to spend, just that i knew of. OK it was low mileage but £6400 depreciation in 5 year equates to £1280 per year. Not bad motoring if you ask me.

D

[Hoovie]

around the £1,000 a year mark is a fair result for a middle of the road car, I reckon. We look at the RAV4s and shudder at how much they are loosing, but those guys who have bought large engined Beemers and Mercs (mostly for the Badge ) are in true free-fall.

[salexander]

I just bought a nice 4.3 XT5 that's fully loaded with extras, it's a 56 plate D4D with 7,700 miles. It probably listed at around £28k new and I know the original owner paid over £26k. It only cost me £16k so I'm quite happy with the depreciation rates at the moment :D It wasn't so good when I sold my old 4.2 D4D though!

The new car came with a full length Toyota dog guard that is surplus to requirements, if anyone is after one give me a shout!

[Fujisan]

We paid £10890 for our Corolla brand new in September 2003. When we traded it in for the Rav last month we were given £4500 by the dealer.

Not bad motoring if you ask me.

D

around the £1,000 a year mark is a fair result for a middle of the road car, I reckon.

Agreed! Well done D