Model Year 25/26 Crap residuals...

[Cupra Jon]

Let me start by saying that a year into ownership I'm not looking to change - love the VZ3 and I've been one of the lucky ones who, aside from some initial paint issues, has had a year of trouble free motoring with the Formentor...no regrets trading in the S3 for it last March.

All that said and done, I've always kept close tabs on the market even when not looking to change, and this week I dropped a "casual" enquiry to Marshall Cupra just to see where the land lay a year into ownership...did it with a view to satisfy my curiosity as to what I would get for my year old VZ3 against an identical spec new car and also it would give me an insight into what it would be worth against the forthcoming VZ5...

I know Cupra prices have increased in 2025/6 but I wasnt prepared for the fact that I would need to add £13.5k to my car if I wanted a 2026 car....
And even though prices have increased I can still source a car via the likes of Drive The Deal for a few hundred pounds more than I paid for mine last year...

Madness to think that a car could realistically be worth over £10k less than when I drove it off the forecourt last March but second hand prices seemingly back that up - a year old fully loaded VZ3 with less than 6000 miles struggles to sell for more than £37k 12 months later...not sure I've ever known a brand to depreciate as much first year - even my S3 only lost £5k.

Glad I'm not actively looking to change after that shock

 

[Syphon]

Yeah I looked at my leon a while back, not looking again

 

[mrtoomanytoys]

Don't think it's "Cupra" related.. The whole market is awash with 1 and 2 year old depreciated cars...

Doesn't help when dealers/manufacturers dump big discounts to get stock moving.. Jag I Pace were almost half price for a new one in Dec... (70+ of them on Auto trader being punted out) That cocks up the residuals of a 1 year old car..

I do feel your pain tho..

 

[Cupra Jon]

I think its also directly related to how the whole VAG operate - they literally force their staff into a new car every 6 months and those "staff" cars then go onto the market too - thus causing a flood of nearly new cars on the market which drives the price down for anyone else looking to sell or px but the dealerships still look to try and get a premium price for whats on their forecourt in terms of a 2nd hand car... its a perfect storm.

Like I said I'm not looking to sell but "IF" the price would have been right then you never know but I do know the VZ5 is completely out of my price range now

 

[SRGTD]

Changing a 12 month old car for a new one hardly ever makes financial sense as the first year is by far and away the worst for depreciation. Crazy market conditions during the pandemic were an exception - customer demand way exceeded vehicle supply which meant low or even no depreciation on some makes / models of nearly new cars.

For the last couple of decades I’ve tended to keep a car for 4-5 years and by time a car gets to 4-5 years old the depreciation curve is pretty flat. My advice (for what it’s worth) to anyone looking to change their car and lessen the effect of depreciation is;

1. Do your homework to understand what’s happening in the market as that can - and will - affect used car values.
2. Get a good understanding of what your existing car is worth; get a range of valuations from the car buying services such Motorway and Carwow before discussing trade in values with a dealer. That way you’ll know if a dealer’s offer for your car is realistic / reasonable.
3. Check out what discounts are available on the new car you’re interested in (e.g. brokers such as Drive the Deal or Carwow) Can a dealer match - or get close to - the best broker price?
4. What incentives are the car manufacturer offering if you take their finance? (e.g. finance deposit contribution, free servicing). Even if you don’t want the finance, consider taking it to get the incentives and then withdraw from the finance agreement within the 14 day cooling off period (you get to keep the incentives).

With my last two cars (each bought new), I got the local dealer to pretty much match the best broker price and get within a few hundred pounds of the best valuation I received from the various car buying services for my part exchange. Maximising the new car discount and part exchange valuation helps to lessen the depreciation effect on the new car. Also, demonstrating to a dealer you have a reasonable understanding of the market will significantly reduce the risk of the dealer screwing you over.

 

[Tara]

They said a new Cupra Leon like i bought was priced at nearly 50k new which is crazy , i seen a few around 44k brand new but I got a 25 reg last year with 1k miles on the clock from a main dealer for £32500 which is still high but everything is expensive now......still going to loose money when/if I sell but thats life.......

 

[tracktoy]

Have to say I will never sell my seat cupra 280 from 2014 and after 10 1/2 years I have only lost 10k which is not bad at all compared to these figures.

 

[Tara]

Have to say I will never sell my seat cupra 280 from 2014 and after 10 1/2 years I have only lost 10k which is not bad at all compared to these figures.

That's the way to do it.....

 

[SRGTD]

Have to say I will never sell my seat cupra 280 from 2014 and after 10 1/2 years I have only lost 10k which is not bad at all compared to these figures.

Long term ownership is certainly the way to go to benefit from low(er) depreciation. Buying nearly new and then keeping long term; even better, as you avoid that initial depreciation ‘big hit’ the first owner will have suffered.

 

[tracktoy]

Long term ownership is certainly the way to go to benefit from low(er) depreciation. Buying nearly new and then keeping long term; even better, as you avoid that initial depreciation ‘big hit’ the first owner will have suffered.

Indeed just what I did (only because i could not afford a new motor at the time (nor now)).
1 Year old ex Seat head office car.

 

[Cupra306Form]

Buying at 1 year old makes more sense, I know new is lovely, but having bought new and 1 year old several times the used car makes much more financial sense unless you plan to keep it for 10 years. I've done OK on a new Ford for the wife when they heavily discounted for a model change and we kept it over 10 years at a depreciation of about £400 per year, and a new Saab when they went bust - a snip at £16500 for a twin turbo diesel, kept it 14 years and sold for a grand. Dropping 10k in year 1 isn't for me anymore, that £10k was £14k before tax and it doesn't equate to that much extra enjoyment of a vehicle.

 

[trew]

In over 50 years of motoring I've only ever bought a brand new car once (mainly to scratch that itch). The 1st year depreciation was ridiculous, so I've never done it again.

My Formentor was virtually new (4k miles/4months old) and it was £20k less than the list price. Looking on Autotrader, identical cars are still being advertised at the price I paid, so hardly any depreciation yet. So, as a cash buyer, I'm content with the purchase.

 

[seatgraham]

Depends on what you pay new. My seat leon cupra estate was £10k off RRP through a broker. It’s the first car I’ve ever bought brand new. And was cheaper than many 2-3 year old models. But obviously with no issues with history and with full warranty. And of course updated MY and choice of colour and spec.

 

[mrtoomanytoys]

Just had a scout on Auto trader.. there must be 30+ brand new formentors on there.. ranging from £6k - £11k discounts.... All flavours... Some are cheaper than "used" ones