Depreciation

[Seanm]

Ive had my car now for a couple of months now and i still think i got a bargain after finding out my car cost 32k brand new.

So it started off at 32k and within 1.5 years it cost me 13k.

Is depreciation that bad on seats to encounter a 19k loss in that time ?

My car is a 184 dsg sc 24k miles with every option including the bodykit.

 

[DaFoot]

It cost so much originally because of the expensive extras.

They count for less when selling later it seems.

 

[kazand]

You lose 20% on a brand new car straight away ( VAT) so there's £6k already. Other factors could be - when a facelift comes out values drop.
The dieselgate effect
The current uncertainty about diesels and tax levels etc.
And as DaFoot says, the extras, whilst nice to have, will not usually add much value. They can make the car easier to sell, bit not necessarily at a higher price. Things like bodykits can have a Marmite effect, some like them, some will run a mile.

 

[matthab]

Bought my Cupra 18 months ago and it its lost £8k according to the dealer. I'm hoping with another 18 months left the curve will flattern out.

I'm hoping it has some equity left by the end, if it hasn't I will get a loan and carry on running it as i really enjoy my Cupra. Ticks all the boxes and puts a smile on my face.

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[jezyg]

SEAT Leon's hold their value quite well overall, a MK1 Leon Cupra is still the best car I ever owned residual wise and the worst a Mercedes C Class. The higher the initial cost the more you have to loose, as other have said, extras add very little, they usually make a car more saleable.

The value on our Tiguan has dropped through the floor with the current anti-diesel and dieselgate, even though it is Euro 6 with ad-blue

Useful link for values, if you fancy a fright:

https://www.capconnect.co.uk/ConsumerValues/Ford.aspx?DB=CAR&CH=PWRTZ&New=1

 

[AndrewJB]

MK3 has depricaiated a hell of a lot more than MK1 and MK2, I blame Dieselgate and cheap lease deals.

Markets are flooded with 2nd hand ex-lease cars.

 

[pastrami]

Bought a 15 plate 'MY16' 184 DSG ST in June 2016, with 6000 miles on the clock, ex fleet car for £16,750

The current valuation with 27,000miles seems to be around £11k - £11.5k private sell.

So around £5500 depreciation in 16 months.

Taking into consideration the £500 in interest I paid on a bank loan to originally purchase it. (All paid now), the depreciation for me is more like £6k.

Makes me question whether or not i'd be better off on a lease next time I come to buy a car? Or in actual fact with the miles I do, it was still the better decision? I plan to keep her for another couple of years but damn if a new car and these lease deals arn't constantly tempting! Must keep my sensible head on!

 

[DaFoot]

Lease deals look tempting, but not for me. Too much wiggle room for dealers, never know what I'll actually end up paying to not own a car.

 

[Sonofzelda]

I agree with all of the above and of course it demontrates that there are winners as well as losers from depreciation.
In contrast though I bought my Ibiza Cupra Black new a year ago and thought it was fantastic value as it came 'fully loaded' plus a SEAT discount.
SEAT's refusal to even consider a new one has supported nearly new prices as 'there just ain't nuthin' else like it'.
Needless to say I was ecstatic when I got it and my joy remains unabated today.
I've just returned from the Green Party conference in Harrogate and averaged 46 mpg - not bad for a car that can do 150 mph - on Youtube I hasten to add - not the M1.

 

[jezyg]

I have gone petrol for my next Leon, partly price and partly diesel uncertainty. But paying 13K for a brand new 1.2TSi Dynamic SE, can only harm residuals long term, Ford and Vauxhall have long paid the price residual wise for heavy discounting

6 month wait for a 1.4, put me off an FR as well

 

[Peller]

MK3 has depricaiated a hell of a lot more than MK1 and MK2, I blame Dieselgate and cheap lease deals.

Markets are flooded with 2nd hand ex-lease cars.

Totally agree! I'll be lucky to see 15k on my 2.5 year old full specification car. Hopefully the values will settle. I've also noticed that Golf R's are cheap as chips, seen one low mileage example going for less than a GTi.

I think the Cupra will hold it's value well once the market settles for them.

The influx of ex-lease cars isn't helping matters!

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[Don-P]

Lease/PCP deals are certainly knocking 2nd hand values. It's all stacked in favour of the companies financing them, which is understandable because it gives the appearance of a buoyant new car industry. The PCP companies only pay VAT on the value of the car when they sell it on after it has been returned to them...

 

[AndrewJB]

Totally agree! I'll be lucky to see 15k on my 2.5 year old full specification car. Hopefully the values will settle. I've also noticed that Golf R's are cheap as chips, seen one low mileage example going for less than a GTi.

I think the Cupra will hold it's value well once the market settles for them.

The influx of ex-lease cars isn't helping matters!

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Golf R, Cupra 280/290/300, Golf GTI wont be worth a lot due to the masses of ex-lease cars coming back.

The only cars that will be worth a decent chunk are Golf Clubsport S, Leon Cupra R (these weren't/aren't available on lease)

 

[marinipersonal]

The best way to avoid it is either getting a good discount using carwow or similar, when ordering a brand new car, as after the discounts can be over 10%, up to 15-20%. Or buying a 12-18 months old were the depreciation will be less aggressive. The new car sometimes will give you a better deal as the APR is usually lower than financing a pre-owned one, as the discounts for a pre-owned car are much less flexible. Cases and cases, but in general it's how I always found out. But in your scenario, a car with so many options, as pointed out by the other members, would be a better deal as a pre-owned. Options makes the car more desirable, but it's very rare to recover much of the money spent on extras.

 

[Curtly]

The 6 month wait for a 1.4 ecotsi should help retain the value of the existing 1.4's..... I'm hoping

 

[graemebillo]

I bought my leon sc 1.4 150 just before the tax change. On 29th March. For 18k. It was the new 2017 face-lift too.
Got a bit of a Bump in pay and thought about swapping for a cupra a month or so ago.

I asked a dealer for a valuation on mine and the guy said that he could only give 14k cos there are a lot of them around.

So it's taken a hit of 4k in just over 6 months.

I think it's best not to think about it.

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[k9aoc1]

I’ve just changed mine. Bottom line is that cost of ownership for 3 yrs and 60k miles (tyres, servicing, fuel and tax) was 25 pence per mile. Can’t complain about that.


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