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OnlyMe

New Cars That Halve In Value In Six Months

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Ouch.

http://www.mirror.co.uk/news/top-stories/2010/09/05/new-cars-that-halve-in-value-in-six-months-115875-22538578/

New cars that halve in value in six months

By Andrew Baxter 5/09/2010

Audi costs £185 A DAY

Car-buyers who have just picked up new 60-reg models face losses of up to £185 A DAY, new research shows.

If price falls from the first six months of the year continue at the same rate, some models could halve in value by the new year.

Carsite.co.uk analysed figures compiled from vehicle price experts CAP Monitor based on cars' January 1 list price and their value on July 1. Our table shows some of the depreciation winners and losers of the past six months.

Popular family models such as Vauxhall's Zafira and Peugeot's 407 were among the fastest to shed value.

John Guess, of Carsite.co.uk, said: "Motorists face a whole catalogue of costs before they can get behind the wheel of a new car - showroom tax, VAT, vehicle excise duty, high fuel prices, soaring insurance premiums and parking permits.

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I struggle to feel sympathy for anyone that buys a new car, especially a high spec. Audi. A car is a very vulnerable asset, and there's an argument as to whether it is even an asset.

You can save so much just by buying a 1 year old car. A new car is ultimately a vanity purchase.

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Oversupply due to fleet sales to the secondhand market i think has something to do with it. Cars dont seem to depriciate so quickly in Australia and South Africa and other parts of the world.

That and the fact that after buying a house no ones got any money left to spend on anything else anyway.

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"If price falls from the first six months of the year continue at the same rate, some models could halve in value by the new year."

- they won't continue at the same rate

- they have calculated the falls from the list price, not the price paid. You can get HUGE discounts on big guzzly stuff, and nobody pays anywhere near the list price for something like a Peugeot or a Vauxhall

Most cars lose 50% give or take after 3 years

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"If price falls from the first six months of the year continue at the same rate, some models could halve in value by the new year."

- they won't continue at the same rate

- they have calculated the falls from the list price, not the price paid. You can get HUGE discounts on big guzzly stuff, and nobody pays anywhere near the list price for something like a Peugeot or a Vauxhall

Most cars lose 50% give or take after 3 years

+1

A non-story really.

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So back to normal then now scrappage has been ditched?

http://www.ft.com/cms/s/0/327559ce-aa95-11df-80f9-00144feabdc0.html

Lookers, the car dealer, restored its dividend following a recovery in interim performance boosted by the tail-end of the government scrappage scheme and the recovery in company spending on new cars.

But it said demand in the used car market had softened since April, echoing economic data released this week showing that falling second-hand car prices had contributed to a decline in UK inflation in July. “Trading has been tricky [in used cars],” said Peter Jones, chief executive.

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I'm hoping the answer is ny neighbour's bling-tastic Range Rover. Its lowering the tone of the area.

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Cars dont seem to depriciate so quickly in Australia and South Africa and other parts of the world.

Definitely. My (American) partner has an 11 year-old Toyota saloon with 140k miles on the clock. She recently checked out its resale value, which appears to be around the $5k mark. Admittedly California is so dry that rust issues are non-existent with a vehicle that lives there all its life (20-25 year old cars are a common sight), but even so the equivalent vehicle in Britain would struggle to fetch £500 even if it had been scrupulously maintained and was a very clean specimen.

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plus dont forget in some countries there are strong tax benefits in buying a new car - case in point in australia, where you can through some schemes buy with pre-tax wages (and have petrol pre-tax for a year too!); for higher rate taxpayers that is a massive up front discount....which makes the idea of buying a 1-3 year old car a bad option.

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I struggle to feel sympathy for anyone that buys a new car, especially a high spec. Audi. A car is a very vulnerable asset, and there's an argument as to whether it is even an asset.

You can save so much just by buying a 1 year old car. A new car is ultimately a vanity purchase.

Depends what you want it for. I bought a new economical diesel focus for business use (although ford were doing a deal at the time in 07) and paid cash. It's very important to me to get to customers on time, and do a high mileage. A 2nd hand car 1 yr old would have saved maybe £3k from a main dealer with 10k on the clock. But I know for sure the history and mileage of my business motor. I know for example that it wasn't hacked around as a hire or driving school car for a year, or a company pool car (they get thrashed).

I was happy to pay the £3k for that peace of mind and higher probability of reliability. Plus I'll scrape some of it back when I trade in as it's a 1 owner, full service history motor.

An high spec audi gas guzzling status symbol would not have fitted my bill though!

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"If price falls from the first six months of the year continue at the same rate, some models could halve in value by the new year."

- they won't continue at the same rate

- they have calculated the falls from the list price, not the price paid. You can get HUGE discounts on big guzzly stuff, and nobody pays anywhere near the list price for something like a Peugeot or a Vauxhall

Most cars lose 50% give or take after 3 years

What he said. The business model for these brands is that they always give a big discount to list. They should be calculating it from something like the What Car target price.

The last Vauxhall I bought was an outgoing model. It was heavily discounted as a result so I got it for just over £9k when list was just over £13k. After six months it was probably worth £8k so in theory £5k down from list which the numpty who wrote this story would project to £10k down from list after a year or £3k.

If I could genuinely buy a 1 year old car for half what it actually cost new (as opposed to the list price) then I would be buying a 1 year old car every couple of years as it's a no-brainer. It is also rubbish.

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What he said. The business model for these brands is that they always give a big discount to list. They should be calculating it from something like the What Car target price.

The last Vauxhall I bought was an outgoing model. It was heavily discounted as a result so I got it for just over £9k when list was just over £13k. After six months it was probably worth £8k so in theory £5k down from list which the numpty who wrote this story would project to £10k down from list after a year or £3k.

If I could genuinely buy a 1 year old car for half what it actually cost new (as opposed to the list price) then I would be buying a 1 year old car every couple of years as it's a no-brainer. It is also rubbish.

This won't format correctly but still, even with a hefty dollop off the list the depreciation does look particulalry vicious on this range - fancy a 407?

Year 0 Year 1 Year 2 Year 3 Year 4

Peugeot 407 Saloon 1.6 HDi 110 Sport 4dr £21,545 £7,614 £6,303 £5,295 £4,443

http://www.whatcar.com/car-depreciation-calculator/results?makeId=16589&modelVersionId=17704&editionId=17824

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This won't format correctly but still, even with a hefty dollop off the list the depreciation does look particulalry vicious on this range - fancy a 407?

Year 0 Year 1 Year 2 Year 3 Year 4

Peugeot 407 Saloon 1.6 HDi 110 Sport 4dr £21,545 £7,614 £6,303 £5,295 £4,443

http://www.whatcar.com/car-depreciation-calculator/results?makeId=16589&modelVersionId=17704&editionId=17824

Wow. Target price is about £1k down.

Looking on Autrotrade I only found one, £10.5k for a 59 model. Not quite your figures which I assume are trade-in but not bad even so.

http://www.autotrader.co.uk/search/used/cars/peugeot/407/postcode/w128qt/radius/1501/keywords/HDi%20110%20Sport/fuel-type/diesel/engine-size-cars/1-4l_to_1-6l/sort/priceasc/body-type/saloon/maximum-age/up_to_1_year_old

If that was the sort of car I was after I'd be off to St Neots next week. Hlaf price after one year. Genuine bargain.

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Wow. Target price is about £1k down.

Looking on Autrotrade I only found one, £10.5k for a 59 model. Not quite your figures which I assume are trade-in but not bad even so.

http://www.autotrader.co.uk/search/used/cars/peugeot/407/postcode/w128qt/radius/1501/keywords/HDi%20110%20Sport/fuel-type/diesel/engine-size-cars/1-4l_to_1-6l/sort/priceasc/body-type/saloon/maximum-age/up_to_1_year_old

If that was the sort of car I was after I'd be off to St Neots next week. Hlaf price after one year. Genuine bargain.

They're shit though

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They're shit though

Pretty much all new cars are head and shoulders above what was available 10 years ago. I'd happily buy a Kia these days. Well I wouldn't actually, but that's just me being a tiny bit of a badge snob.

If I wanted a roomy car which was economical and looked ok then that does it.

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Pretty much all new cars are head and shoulders above what was available 10 years ago. I'd happily buy a Kia these days. Well I wouldn't actually, but that's just me being a tiny bit of a badge snob.

If I wanted a roomy car which was economical and looked ok then that does it.

Fair enough. If i bought cars based on the same criteria i use when shopping for kitchen/white goods i'd probably agree with you.

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Pretty much all new cars are head and shoulders above what was available 10 years ago. I'd happily buy a Kia these days. Well I wouldn't actually, but that's just me being a tiny bit of a badge snob.

If I wanted a roomy car which was economical and looked ok then that does it.

It's normally the case that when non 'prestige' marques do prestige models, those cars drop in value like a lead brick. Unfasionable marques like Kia even more so. I miss the days when skoda were perceived as crud, but were just rebadged VWs.

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It's a nice thought having a new car, but I won't be getting one any time soon.

I've had my 10 yr old car for 5 years now, I service it myself, its reliable and does 0-60 in 7 secs and still does 30mpg. I bought it for £5k and it still worth £3k so it's a cheap car to run and still ticks all the boxes for me!

New cars cost a fortune to buy and lose money faster than a house. Then there is servicing, which costs a small fortune, unless you get a BMW or peogot service plan.

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Im looking fowards to buying a second hand R8 for peanuts, doubtful....

Define peanuts.

After months of searching, looking at some lemons and just being beaten to good cars several times you should get a vanilla '06 V8 for under £30k in 2012. Maybe earlier if we see an oil price spike.

By that age there is no warranty and a big bill of some sort is on the cards, maybe even an engine rebuild, forcing

down the otherwise robust RV of this class of motor.

You will not get a well documented car maintained by an enthusiast for that money - you need to do your homework and know that a partially documented car owned by someone who bought it as jewellery and now considers it an 'old car' is as good as it looks superficially, or recognise that a scruffy one is the real bargain because the moving parts are sound.

You are making life hard for yourself TBH - there are plenty of cars offering similar performance that are easier to get and much cheaper to buy & run than the R8.

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I struggle to feel sympathy for anyone that buys a new car, especially a high spec. Audi. A car is a very vulnerable asset, and there's an argument as to whether it is even an asset.

You can save so much just by buying a 1 year old car. A new car is ultimately a vanity purchase.

I don't understand your post. Just how is it possible for everyone to buy a used car? Me personally, I always buy ~2yrs old but someone has to buy new.

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Audi costs £185 A DAY

At that rate both our cars were paid for in eleven days.

They do go wrong though; partners 16 yr old Merc diesel needing a new wiper blade last year

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An A4TDi SE lists at £22,150 for the basic car. A year old "59" plate with 10,000 on the clock trades at £16,450,son asuming you didn't get a discount it would have cost you£5,700 in depreciation,about £15 per day.Of course if you insist on fancy options then it will cost you more.

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As they say -

Buy at 3 years old to avoid the steep depreciation,

Sell at 5 years old to avoid expensive maintenance.

Got to be crazy to ever buy a new car.

My toyota with 90K on the clock is just over 7 years old....regular maintenance but nothing gone wrong worth doing about.

It feels great...and is very cheap to run. Thats cost me £2K a year LESS the final sales price.....bought from new too...so its only my stains on the seats.

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  • 146 Brexit, House prices and Summer 2020

    1. 1. Including the effects Brexit, where do you think average UK house prices will be relative to now in June 2020?


      • down 5% +
      • down 2.5%
      • Even
      • up 2.5%
      • up 5%



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