Least depreciating vehicles

[aris]

http://www.carbuyer.co.uk/reviews/recommended/slowest-depreciating-cars-motors-that-hold-their-value

[88b]

The VW group appear to come out of that quite well

[aris]

I was surprised with the Dacia - but I suppose if you have an inexpensive car in the first place, how much lower can it go?

[keg]

Landcruisers are normally in there. Defenders must be somewhere there too.

[Davyo]

Still a big waste of money.Wifes Stype lost £26000 over 3yrs and my clio lost £6,200 in the six mths I had it.

Edited December 26, 2013 by Davyo

[kent]

There is no 100% way to predict depreciation over a reasonable ownership period. Todays sought after used car is tomorrows barge pole job!

[Malik]

Land cruisers normally hold their value extremely well

[Mungler]

Merc G Wagon is depreciation proof. Why, I don't know

[Hamster]

The list is somebody's opinion :

 

Using data from VIP Data – a company that predicts residual values – we’ve picked out some of the cars that perform best when it comes to holding on to their value. It's worth paying attention to our list, as the consequences of picking a car with poor residuals can be shocking.

 

If you google the subject you'll find a few very different looking lists and it's always affected by trends. Often cars like a specific Ferrari can perform well but obviously not for value for money reasons. I personally don't pay that much attention to them, for example a car like the VW Lupo costing under £10k for a good one is obviously going to outperform one that cost four times that when new, it doesn't make the Lupo better just that more people need and can afford that type of car when used. It would be much better to have lists that compare cars within their own sectors.

Merc G Wagon is depreciation proof. Why, I don't know

 

Very low production numbers, oddballs buy them new.

[al4x]

It all depends if you buy new as the canny 2nd hand buys are those that drop a lot then steady off. We just bought a rav 4 that had dropped 50% in 3 years but after that they seem to drop far slower as they have a decent reputation. It was that or a Tiguan but have to say this seems the better buy from what we looked at.

[kent]

consider a car has 20% vat on it new then the first registration fee on top of that dealer profits. If you walk back in to sell it a week later all those need to come off and then some more so its worth the dealer putting it up for sale.

If you wish to slow depreciation buy just used and sell again before out of warranty and before any big service cost private or keep just the thing for ten years plus

[Hamster]

It all depends if you buy new as the canny 2nd hand buys are those that drop a lot then steady off. We just bought a rav 4 that had dropped 50% in 3 years but after that they seem to drop far slower as they have a decent reputation. It was that or a Tiguan but have to say this seems the better buy from what we looked at.

 

Spot on, there is no better buy than a 2-3 year old minter. I sell 3 year old top of the range diesel 7 seaters that were £23k new for £8.5 RETAIL, with sub 10k miles so their only real difference to new is that they've been run in !

 

When it comes to premium though I think there is a case for buying or at least leasing new. Anything costing around the £50k new mark is going to hurt big time if it goes wrong outside warranty period. It costs around a grand a month to buy and run a big premium 4x4 for instance whether you pay £30k for a used one or £50k brand new, the latter can be leased for the same sort of money that it costs to run a used one plus you get todays technology and less mechanical worry.

[kent]

 

Spot on, there is no better buy than a 2-3 year old minter. I sell 3 year old top of the range diesel 7 seaters that were £23k new for £8.5 RETAIL, with sub 10k miles so their only real difference to new is that they've been run in !

 

When it comes to premium though I think there is a case for buying or at least leasing new. Anything costing around the £50k new mark is going to hurt big time if it goes wrong outside warranty period. It costs around a grand a month to buy and run a big premium 4x4 for instance whether you pay £30k for a used one or £50k brand new, the latter can be leased for the same sort of money that it costs to run a used one plus you get todays technology and less mechanical worry.

 

Let me tell you todays technology makes a car less trustworthy than one made a dozen or more years back, the golden age of cars has gone with various legislation on emissions, recycling and safety

[Hamster]

 

Let me tell you todays technology makes a car less trustworthy than one made a dozen or more years back, the golden age of cars has gone with various legislation on emissions, recycling and safety

 

Arguably maybe, but it's on manufacturer warranty so who cares, besides I really meant the fact the new shape tends to have new goodies, lower co2 hence less tax and better MPG etc, not to mention the safety aspect. I have yet to drive new whatever that felt less nice to drive compared to the outgoing version.

 

I do know what people mean when they say older cars were more reliable / simpler to work on but in the grand scheme of things it isn't really so and I for one wouldn't want to drive 15 year old technology just so I can change the oil myself.

[Lord Geordie]

Some of My cars went UP in value

 

My MK1 Fiesta I bought for £100 at an Auto auction. Sold it 9 month later for £500. Now worth £1000+

 

Mk 1 Astra bought for £75 and sold a year later for £450. Currently over a grand again.

 

I have a Vauxhall Cavalier at present, 45.000 genuine miles, in extremely good condition. I paid around £400 and looking at current prices, as it's an appreciating classic! I could stand to get £700 to over £1000 if I hold on to it!

 

Some garages are charging silly money NOW for low milage ones. I saw one recently for around £1600 with 60.000 on the clock.

 

The SRI models go for good money too. I saw a 4x4 Cav go for near £3000 :o

[Mungler]

 

Arguably maybe, but it's on manufacturer warranty so who cares, besides I really meant the fact the new shape tends to have new goodies, lower co2 hence less tax and better MPG etc, not to mention the safety aspect. I have yet to drive new whatever that felt less nice to drive compared to the outgoing version.

 

I do know what people mean when they say older cars were more reliable / simpler to work on but in the grand scheme of things it isn't really so and I for one wouldn't want to drive 15 year old technology just so I can change the oil myself.

 

I was never a fan of the notion of leasing until we ran the numbers at work.

 

Some of the deals simply don't add up which leads me to believe they are heavily subsidised by the manufacturers. My lease deal is £399 plus vat per month for 2 years (road tax, tyres and servicing included) and the £50k car I got given will be worth, what £25k when I give it back. How does that add up?

 

The next one I've lined up is the SQ5. I can't flippin wait for April.

[Hamster]

I was never a fan of the notion of leasing until we ran the numbers at work.

 

Some of the deals simply don't add up which leads me to believe they are heavily subsidised by the manufacturers. My lease deal is £399 plus vat per month for 2 years (road tax, tyres and servicing included) and the £50k car I got given will be worth, what £25k when I give it back. How does that add up?

 

The next one I've lined up is the SQ5. I can't flippin wait for April.

 

Tell me about it, years ago we used to sell brand new Clio's for £189 deposit and £189 per month x 35 with 10k mileage allowance and two years free insurance ! If you borrowed £5k to buy a used one the monthly payments wouldn't be that far off and you'd have to pay for insurance, MOT's and repair bills, after 3 years the thing would be worth £1500 tops, the new one on handback usually had a positive equity of at least £500 to help towards the deposit for your new deal. It's a no brainer.

[kent]

Arguably maybe, but it's on manufacturer warranty so who cares, besides I really meant the fact the new shape tends to have new goodies, lower co2 hence less tax and better MPG etc, not to mention the safety aspect. I have yet to drive new whatever that felt less nice to drive compared to the outgoing version.

 

I do know what people mean when they say older cars were more reliable / simpler to work on but in the grand scheme of things it isn't really so and I for one wouldn't want to drive 15 year old technology just so I can change the oil myself.

Safer? not really this peaked about 15 yrs ago for car occupants, goodies? so fools can tick boxes of stuff one car has another does not in order to choose which one to buy then get no practical use out of said item. I know plenty of older versions that drive better than the new but then that's personal preference. Particulate filters are a big factor in the death of long term reliability if you do short runs. CO2 is a joke if the car does not last long past its warranty and hence scrapped earlier, co2 produced in manufacture can be larger than that gained in the exhaust gas. Don't worry though co2 emissions has become more of a government economic management tool than a green one. The Government want the duty on sales and don't like the public to do anything but spend more than they earn, this way they can control you.

Sorry if I sound a bit different but I sold cars for a while back in my past and it makes a cynic out of you, many times I have driven home a better PX than the customer changed for

[kent]

I was never a fan of the notion of leasing until we ran the numbers at work.

 

Some of the deals simply don't add up which leads me to believe they are heavily subsidised by the manufacturers. My lease deal is £399 plus vat per month for 2 years (road tax, tyres and servicing included) and the £50k car I got given will be worth, what £25k when I give it back. How does that add up?

 

The next one I've lined up is the SQ5. I can't flippin wait for April.

PCPs work by locking you into a manufacturer these days. The price of the car is geared around the deal, take a look back in time.

[Hamster]

PCPs work by locking you into a manufacturer these days. The price of the car is geared around the deal, take a look back in time.

 

PCP's give you a GMFV (guaranteed minimum future value) as long as it's returned in 3 year old condition and agreed mileage, it is in the dealer / manufacturers interest to set this figure below the perceived px value leaving the customer with an equity without having to find a cash deposit. There is no onus on the customer to px with original make / dealer so he / she can buy a different car next time which incidentally doesn't even have to be new. If you're half clued up you could even sell the car privately for more, pay off the GMFV and be left with a bigger cash difference. (This must be done with the buyer's knowledge as it will be showing up on finance until it's paid off and cleared)

 

Safety doesn't peak. The first car to achieve the 5 star Euro Ncap status was the 2001 Laguna, other makes have also achieved the 5 star rating and the test will no doubt be made even harder. There are cars sold today with only 2 or 3 stars, pedestrian safety is the next area to be addressed and I for one will bet a large amount that in 20 years car safety for occupants and pedestrians will be on a different level to what it is now.

[kent]

 

PCP's give you a GMFV (guaranteed minimum future value) as long as it's returned in 3 year old condition and agreed mileage, it is in the dealer / manufacturers interest to set this figure below the perceived px value leaving the customer with an equity without having to find a cash deposit. There is no onus on the customer to px with original make / dealer so he / she can buy a different car next time which incidentally doesn't even have to be new. If you're half clued up you could even sell the car privately for more, pay off the GMFV and be left with a bigger cash difference. (This must be done with the buyer's knowledge as it will be showing up on finance until it's paid off and cleared)

 

Safety doesn't peak. The first car to achieve the 5 star Euro Ncap status was the 2001 Laguna, other makes have also achieved the 5 star rating and the test will no doubt be made even harder. There are cars sold today with only 2 or 3 stars, pedestrian safety is the next area to be addressed and I for one will bet a large amount that in 20 years car safety for occupants and pedestrians will be on a different level to what it is now.

 

To respond with pertinent info to this.

1. The Renault laguna had a higher Ncap than a Volvo or Saab a dozen or so years back - I know which I should prefer to be in in a crash which is far harder to engineer for than a test, yes engineered for a set test. Speed angle the works! I remember being on the test panel for the Vauxhall Omega against its perceived rivals. It was scored lower than the Merc on safety which had less, reason was we were all GM dealers and trusted the Merc to actually deploy its airbag etc.Our body shops were constantly having to deploy theirs in other models after crashes!

2. Manufacturers have muddled for years how to retain clients to their brand. The changes to PCP contracts reflect only this (backed up by offering more discount if you take one out). Conquest bonuses and retention bonuses etc were all tried in the past (never disclosed to the public though) but high residual balloons are maybe the ultimate in customer retention if other brand dealers cannot offer it you (because the thing wont fetch it on the open market)were are you going to buy your next car? All is needed is a higher list price than the cars real worth and the deal is sealed, a low interest rate and a high residual Bobs your Uncle Fanny is your Aunt.

 

PCP deals were originally a way of moving clients off the used section into the new, rectification of over high residuals taught the manufacturer an important lesson. Sales of cars have been manipulated by moving PX values artificially upwards against overpriced new purchases falsely for as long as Arthur daily wore his Sheepskin years and years, this is seriously just that ploy but wrapped in camo, take my word for it or not but I used to be involved with it at the coal face. What do I do? Buy cars I like, priced reprehensive of what I see before me, pay cash mainly brand new, maintain them regardless of market value at the time then buy another a heck of a deal longer into the future. I have no itch to change at a certain age or payment schedule.

 

Don't want to make any more of this, it is what it is (if I deal seems to good to be true its usually because it is)

[Mungler]

PCPs work by locking you into a manufacturer these days. The price of the car is geared around the deal, take a look back in time.

 

At work we don't PCP, we lease. Car keys get thrown back in 2 years and that's it.

 

So....

 

My 2 year lease deal for a brand new E250 cdi cabrio amg tip with a RRP of £45k

 

The lease deal is 3 months down (that's 3 x £399 = £1197) followed by 24 x £399 = £9,576, so total financial outlay for the whole deal is £10,773 plus VAT. The business is however VAT registered.

 

As above, within that is road tax for two years and all servicing (to include tyres) - lets say that's worth ball park £1k over two years. It's like magic, the tax disc arrives in the post.

 

When the car goes back, it will be worth £20k maybe £25k at absolute best.

 

So, to my mind I get £20k to £25k of car depreciation for £10,773 plus VAT (and the VAT is neutral).

 

Put another way, if I bought the car brand new and sold it after 2 years I'd be over £15k worse off than if I leased it for 2 years.

 

How does that work? And no I'm not tied in to get another Merc at the end of the 2 years hence the Audi SQ5.

 

Some of the business lease deals for the thirsty German supercars are amazing. That being said, I don't think you can beat modern technology and the blue motion diesels - I get well over 50 mpg out of mine and I can go weeks before remembering to fill it up again.

Edited December 28, 2013 by Mungler

[kent]

Company lease deals are very different than a PCP as a private individual. for one thing interest is not charged on the residual and you need to remember that only half the vat can be claimed back on a car 100% on a van (so vat isn't so neutral if its your company). Lease deals make sense for a lot of companies especially with full service agreements, the payments are effectively a rental on the accounts so they reduce the companies tax liability on profit directly. In deed the only bad things that can be said about them is they push up the break even in hard times and if an employee leaves you can be stuck with the car.

Lease companies get large discounts when they purchase the cars together ( the dealer will apply to the manufacturer for extra discounts to do the deal, effectively selling them for less than he himself might buy them for a times) and generally have the residuals underwritten by a final buyer so they are basically quite safe to make money off the finance, this day and age that final buyer might be one of the car supermarkets in some cases the manufacturer importer to sell through "approved used stock" back to the dealers in a weird twist.

[Hamster]

How, why or when is not nearly as important as the fact you can drive a brand new car for £200 quid a month if you want, OR you can borrow £6-£7k and pay £175 over 4 years to buy second hand an all the extra hassle that would bring.

[kent]

Depends were you end up in the end though don't it. Don't particularly like the idea of borrowing on a depreciating asset at all personally