Depreciation is massive!

[thedesignboy]

I'm just about to buy an x5 2007 (love them awesome to look at and drive) I was just looking at the depreciation rate for them, the <2007 models are woefully low and almost tempting to buy instead as they are half the cost of the 17k 2007 one I'm looking at. So I'm thinking about this a little more than I should as I tested out a beautiful 6 series 2006 which was stunning in every way for 10k! It was a 60k car a few years back!

My current CRV I bought for 13k 2 years back and I'm being offered 6.5k for it now.

So Looking at the x5 - I wonder what it will be worth in 2 years time (I normally trade around that time) will it be the same as what the old gen x5's are now (the 2005 versions?) if that is the case I'd be throwing 10k away in the next two years in depreciation.

I thought the whole point of a used car was getting a lot of car for a lot less money, but this is making me rethink it a bit. Audi Q7's are holding their money amazingly - is this to reliability?

Lol sorry for all the questions, my mind is fried thinking about what to waste my money on
Might just go mental and get the cayenne

[X5Sport]

Depreciation is a killer for most people buying new.....my £64k X6 in 2010 is probably now worth somewhere in the £35k mark, maybe a little more.  I'm not concerned as I don't change my cars that often and I knew what kind of hit I was going to take.

The earlier E70s are more expensive to run and less refined that the later, or even current versions and with the new version out there is going to be a hit.

My 2004 X5 went in 2010 for £16.5k and the depreciation was levelling off then.  The first two or three years are always the worst regardless of make.  Some models and even trim levels do better than others - and it might be the Q7 at present, but that can change next week!  You just have to take a deep breath and go with what you really want.

Richard

[thedesignboy]

That is really sound advice mate, appreciate that. You seem to think the right way about it. You are very lucky to be able to buy the car at the top - I'd only dream to be in that position. Though, spending 17k for me is a fab option as my last cars were all around 10k -

Really what I wanted to know was something close to what you said regards selling your 6 year old car for around the money I'll be buying this 7 year old car, should I wait a few months now the new one is out and expect to see some better deals or just go with it and get it now?

[Sanj]

I'm like yourself, I can't afford or stomach the depreciation (it's in the blood) but an E70 won't drop like a stone overnight just because the F15 has just been released. They take a steady decline and then rely on mileage, age, options, condition (remember early ones had the higher road tax, means £20 a month extra but most don't see it like that), that puts em off.

Buy now and don't look back. Enjoy the whole experience.

[pvr]

There is a point though where repair costs (and the inconvenience of those) could outweigh the depreciation.

[snipez999]

I find the greatest depreciation happens in the first 7-8 months <whistle>

[Horizon]

I too can't handle depreciation . I lost 4k on my X5 in 2 years, that realy pi**ed me off!! You guys that don't blink
an eye about 30k in the same time  must be loaded.
But if you can afford it, and don't mind, that's your choice. I wish I had the funds to have the choice . :-[

[Nat]

HI,

Depreciation is the biggest cost of buying a new car. There is a BUT . You also have to remember that 20 % of the new car  price is a TAX.........so on a £100 K car , £20 K is a direct consumption tax to the govt.
So, let us assume you bought a £100 K car brand new. In reality the car only cost £80 K. So if after 3 or 6 monthst your car is only worth £75 K is that really a surprise ?
Not really. Your car has only depreciated just over 6% .
Likewise you have to ask yourself, if you saw the same car , at 6 months old with a sticker price of £90 K should you be buying it ?
After all . of the £90 K you give the dealer,  all of it goes in his pocket. He is in effect charging you £10 K more for a second hand car than a new one.
I bot a new X5 last year. It is the first new car I have ever bought . I bought new because it is my intention to keep it at least 10 years and because I got nigh on 25% off. I also got free servicing with it and in the overall picture having worked it all out it made financial sense to buy new as oposed to second hand. Buying new gave me free servicing, a longer warranty and the big discount paid for the vat and first year depreciation.
I hear and accept that to be able to buy new you have to have a certain wealth , but to balance that out I think if you are buying in effect the same car as me some 7 years later for £15k instead of £65 K you have had a very good discount and you have paid the govt NO tax when buying your car. I guess at the end of the day we should be thanking all those people who buy new cars as they are giving the govt vast sums of money.

We should be asking ourselves, should we be paying vat on any mode of transport ? Food is a basic comodity and is vat free, and IMHO so is the right to move around.
You provide your own transportation, yet the govt taxes your mode of transport. On top of that you pay road tax to pay for the roads and the govt takes your road tax and spends it on other stuff and shock horror our roads are fkd. I gues thats a different topic.

Just MHO...........

[535dboy]

[quote="X5Sport"]
Depreciation is a killer for most people buying new.....my £64k X6 in 2010 is probably now worth somewhere in the £35k mark, maybe a little more. 
Richard
[/quote]

Dream on !!!!!

[X5Sport]

That's the forecourt price now.  I wouldn't expect to get that, but BMW dealers think they can.

[thedesignboy]

Interesting perspective on buying new. We were about to buy a new barbarian 4x4 through work and write I think 43 off our tax bill but I just did not like the little car for the money. When you see cars like the sex bmw 6 series for around 10 k it sort of throws a spanner in the thinking.

I'd wonder if you will hang in there with the car for years. Most people I know get tired and swap after 3 years. Having a car so long especially when you have the means to buy new high tech will make your car old tech in about 5 years and leave you itching to keep up with the neighbours and Co workers. It's sadly how our minds work. Always wanting more.

[X5Sport]

I'll hang on to the X6 for as long as possible because it doesn't get much use, and at present I can't afford to buy another new one.  At the time I bought it I could do those sort of things, but with a young child now, priorities are a tad altered....

I would probably have still got my 2005 X5 if it hadn't been so unreliable.  We still have a 2005 3 series as that has been good - apart from it's habit of breaking rear springs.

Richard

[snipez999]

Well I always look at it in terms of cost to change.

I paid the same to change this time as I paid last time, but got a car worth 35k more.

So I have been paid 35k to drive the Aston round!!

OK so I haven't but it still looks moderately feasible (on paper) as an excuse and a justification

[Nat]

Hi,


I will only change if there is an issue. I have had my M5 11 years and have no intention of getting rid of it. I can easily see myself keeping the X5 10 years, as long as it behaves itself. So far so good.
One of the " things " that is important to me is the looks. Take for example the new F15 X5. I happen to think its horrible. Of particular offence is the headlight/bonnet area. Car makers persist in having what I call cut away headlights and have this huge lip once the bonnet meets the headlight. Utterly rank. As for technology/safety advances.........I think cars have reached their plateau really. My M5 has about 148 air bags in it already. If i ever have an accident in it it and they all go off they will write it off anyway and if the accident doesn't kill me the airbags will. One thing is for sure, my M5 is simpler so its fixable without a super computer, its cheaper to fix than the current crop of cars and it has a V8.............
Im no bovd about having the latest numberplate etc etc. so happy to keep a reliable car a long time.

[pvr]

[quote="Nat"]
if the accident doesn't kill me the airbags will.
[/quote]

) ) )