Bit of a rant! How much do people lose on their cars in depreciation? It feels as though we've lost enough in car depreciation over our last few cars to keep a small country going. Presumably it's used to furnish these high tech car showrooms. I'd be interested to hear other people's experiences.
Car Depreciation
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08-09-06 11:09My previous car was an Alfa 156. It was 2.5 years old and it cost HALF the original showroom price. That was a hell of a saving for a car which at the time I'd planned on running into the ground...
Unfortunately, as it was an Alfa, it didn't quite last that 4 years before it started costing me lots of money, and when I came to sell it, it was pretty much worthless.
I swapped it for a nice British(German) car that would last a long time and depreciate much better (than most cars). -
08-09-06 14:12But, why an Alfa.....?
Sorry, quick question......why would you buy an Alfa in the first place ;-) -
08-09-06 14:21
I thought I'd be original and not drive a BMW... like everyone else on this planet!
They are very nice cars to drive and Italians really know how to make leather seats. It's just a shame that their cars start to fall apart after a few years. -
14-09-06 07:30Back in the late eighties my parents switched from Alfas to Audis (my father was a bit of a petrolhead - I remember us having Alfa Suds and Alfa Romeos growing up) purely on the basis that the cost of servicing and depreciation was getting prohibitive.
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14-09-06 08:38Isn't it curious how national characteristics seem to materialise in a nation's cars? eg Alfas are stylish, fast, and very attractive, but have a reputation for unreliability, the American cars over here - eg Hummers, Dodges, - are large and noisy, the German cars have a reputation for reliability and are quietly understated - or am I just being too sterotypical?
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14-09-06 11:38I have lost over £20k in depreciation in the last 3 years on cars I have bought! The problem is worse when you buy a new car because no soon as you drive off the forecourt you have lost 3k/4k straight away. Some cars are much better such as Audi, BMW and VW whilst others such as Vauxhall and Ford are a nightmare. You can actually make money on some cars, i.e. Porsche Cayman - If you bought one of those when they first came out and sell it 6 months to a year later then you are likely to make money on it becuase the waiting list for new ones are so long. Same with most brand new supercars such as the Ferarri F430... However, I guess if you can afford to sped £100k plus on a car you are not going to worry too much about depreciation are you! ;-)
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14-09-06 19:55I dont think you ever buy cars and worry about depreciation, if you do, buy an old shed and run it around for a year then buy another. £500 cars are easy to pick up and can be reasonably reliable if chosen well.
I just couldn't drive round in something that didn't make me enjoy driving it though, thats why I guess i'm happy to lose money doing it.
Like Mark said, buy carefully and you can reduce the risk of massive depreciation, however, buy mainstream (Peugeot, Ford, Vauxhall and Renault) and you'll get hit by massive deprciation thanks to the fact they supply lease/rental companys at incredibly low prices, thus damaging everyone else's residuals who buy that marque privatley. :( -
15-09-06 14:29Sorry to geek it up a bit here, but the same happens with computers. You always want the fastest and most shiny one you can get for your money, but they depreciate horribly and very quickly.
Like MattS3 said, if you know that and can accept it, you'll enjoy your new toy much more.
If only cars kept their value like iPods! -
19-09-06 13:22Depreciation a necessary evil
Surely one of the key points of depreciation is that this stimulates the second hand market which in turn gives us selling cars the ability to buy shiny new ones...if cars kep their residual value better there would be no second hand market, no bargains and no ability for us to buy again
It's not a nice thing but it's a necessary thing.... -
19-09-06 13:51Jonathon, I agree with your comments but I feel that depreciation creates the traders profit and I see too many flash showrooms with sharp suited gushing salesman. Do you think i've got a chip on my shoulder about 2nd hand car salesman?!
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19-09-06 13:55Pass the sheep (skin)
Totally agree with the second hand car salesman issue and think people have a real issue with this - not a nice experience buying through trade - not sure I have ever 'got a deal'. However without them and the way they shift cars and keep the market moving we could have a very stagnant car market for new and used.
Also the rise of eBay and the like should help change the way people do this in the future...you never know you may even buy one from me one day (one careful owner - seven wreckless children!)
Cheers;) -
28-11-06 13:48
I've had a 156 sportwagon, X reg for 4 years. Not had one problem in that time. Never let me down. Most expensive thing has been new tyres but then they are no different to any other car. More stylish than a beemer estate, more fun to drive. Carries all my cycling kit, 2 bikes spare wheels and loads more.
It has been great value as the previous owner had all the depreciation.
