Shocking depreciation

[cupraboss]

Hi guys, i'm new to the forum and interested in buying a used Seat leon cupra 280 with DSG in about 6 months. Does anyone have any insight into the reason for the the severe depreciation these cars are suffering, especially considering how rare they are??

Judging by todays prices of around £18-19k for a used 2014 cupra 280 DSG with ~10k miles what prices do people expect them to be in about 6 months?

Thanks

Cupraboss

 

[Famandy1]

The big discounts of £6k+ being offered by the brokers can't help residual values

 

[P0LKR]

Im glad mine is on business contract hire.

 

[Brady93]

The big discounts of £6k+ being offered by the brokers can't help residual values

I guess that would apply to lots of different cars that the brokers can get good deals on as well? Not just limited to Seat?

Sent from my HTC One M8s using Tapatalk

 

[fabiavrs2004]

If you used a broker, you could have got £5k off so paid £23k or so for a 3 door. If they are going for £18k plus at 18 months old then that surely is pretty good. See what you would get on a Golf 1.4 GT or A3 or for a bit of fun a Focus or Astra

 

[JMAC]

Defo a buyers market lately. I've had some shocking part-ex quotes lately, with some dealers (even VAG) refusing to even appraise my car.

It's not just brokers. SEAT main dealers are selling almost new/demo Leons very 'cheaply'. Can't be a good business model when you're trying to sell used cars that are 1-2 years old for only a few hundred £'s cheaper than a pre-registered, as new car.

The Nissan Qashqai, now there's a car that can depreciate like a champion. Probs as good as a Proton...

 

[Matt280]

Shocking depreciation when you are comparing to list prices, but hands up who paid list for theirs? Mine was a three month old dealer demo/directors run around and I paid 6.5k under list! One year in, I'm pretty happy with what it is worth now. Not that I have any intention of selling.

Check out what Golf GTI's are at three months vs 15 months and you will see the Cupra's are doing pretty well. The three month old GTI I very nearly bought for c£30k is around the £23k mark now. Not trying to say the Cupra's is 'better' than anything else, just surprised at your 'appalling' comment.

 

[andrewpain]

just the way depreciation attacks any non-mainstream car, and a few that are.
what's a 1 year old boggo Astra worth? Or a focus or Mondeo?
compared with a 911 Carrera....Or, strangely, a Mini. They're not rare, but less depreciation than many other volume cars.
It's the willingness/necessity of dealers to discount new cars to shift them.
Encouraged by manufacturers.

 

[LeonFRTDi]

Id say theres a very easy fix to this problem which am sure a fair few would have figured it out...
DONT BUY NEW without a very good discount & even if you do get this dont whinge on 12-18months later
as it will still be worth less than you thought esp if you trade it back into a dealer against another over priced one.

 

[LeonFRTDi]

Ive said before in Jan 2005 i bought a NEW mk1 Leon FR with alot of haggling & it was within £500 of anything available online at say £1,500 less than RRP ok. Straight sale no tradein
Sold it just over 10yrs later privately for decent money
Lost in the 10 yrs i had the car around £12,500 in depreciation
Feb 2015 Found 9month old ex SEAT themselves FR 184 5dr incTech Pack full standard spec May2014 it was new with 4500miles on
Cash Sale with Supplying Garage of £17,700 now we all know there £22,500 odd Split New
But who pays that?
Found a few places to buy a New 2015 one for £19,700/£20,000 range.
To me there was no point as you would loose the balance anyways.
The 9month old Car was the right deal imho.

The odd thing is here it ended up only costing me £2,200 more that the New Mk1 was 10yrs previously

So which Car is better Value for money ?

NO Regrets with the Mk1 it was a Fantastic car & loved every min of it.
The mk3 is fancier more toys blah blah but id still have the oldun if i could.

 

[robin cur]

This is depreciation my 3 year old SLK fully loaded WAS £43.000 i got it at 2.5 years old £21.500 now worth £15.150 on we buyanycar.com on done 15k.

 

[LeonFRTDi]

This is depreciation my 3 year old SLK fully loaded WAS £43.000 i got it at 2.5 years old £21.500 now worth £15.150 on we buyanycar.com on done 15k.

The whole Motor Industry is just Con Men...

afaik that Merc was £13k overpriced in the first place...

Car Makers couldnt give too hoots what your Cars worth the minute it leaves there factory or even Dealers yard.

But there happy to peck ya eyes out & remove your Back teeth tho

 

[decadent]

The only way you can make a car work for you financially is do as LeonFRTDi has done - buy new/young and run it for years. His FR TDI would have cost cica 1250/year. Compare that to someone chopping in for a new car every 2 years - say the Leon 280 in the above example and that's likely to cost around £5k per year over the 24mth time period.

Don't get me started on the PCP method for losing cash, however totally understandable for people who need to run newer cars/have a car as a hobby/want the latest spec/perhaps have a car allowance they are using etc. in that case it's a great way to see what the car is going to cost you over the time frame.

 

[Geobob]

Anyone who buys a brand new car i mad, you pay the VAT on the car which is then never chargeable again (unless it has been tax reclaimed by a company). So any car that has been pre registered will be significantly cheaper than a brand new non registered car.

 

[LeonFRTDi]

Anyone who buys a brand new car i mad, you pay the VAT on the car which is then never chargeable again (unless it has been tax reclaimed by a company). So any car that has been pre registered will be significantly cheaper than a brand new non registered car.

That is very correct.
Iam a VAT Registered Business & i knew before i went to get the used Car there is no VAT on them, the Invoice clearly shows that.
SECOND HAND USED CAR MARGIN SCHEME
is whats written on the Invoice.

Now i cant claim the VAT on any normal Cars anyways, only something classed as a Commercial, a Van or 4x4pickup the likes of them.

Looked into this further & i we all know 20% near enuff which just so happens to be the VAT element on NEW cars simply vanishes the very min you drive them off the Garages Forecourt. Funny that eh..

So the thing to do is really never buy a New Car unless you like giving up 20% of its Value in an instance.

 

[LeonFRTDi]

The only way you can make a car work for you financially is do as LeonFRTDi has done - buy new/young and run it for years. His FR TDI would have cost cica 1250/year. Compare that to someone chopping in for a new car every 2 years - say the Leon 280 in the above example and that's likely to cost around £5k per year over the 24mth time period.

Don't get me started on the PCP method for losing cash, however totally understandable for people who need to run newer cars/have a car as a hobby/want the latest spec/perhaps have a car allowance they are using etc. in that case it's a great way to see what the car is going to cost you over the time frame.

Thanks

in that 10years i had the servicing & tyres & mot's, insurance, roadtax etc etc.
But everyone has all of that.

I was able to save in the 10yr period aswell i could have bought a brand new Leon but na
over valued for what they are imho. Ive better things to use my hard earned cash on.
I do think everyone should have that NEW Car Experience atleast once tho!
Ive had it & now it doesnt bother me.
I can see folks moaning about the spec not being right etc etc but like it really matters
coz when you sell it on it wont i can assure you that.
Spend Thousands on Extras if you must but it will be all worthless in most cases 5 years or whenever down the line.

Since i got my mk3 11months ago ive only done 6000miles in it, Bought another 4 alloys with tyres on all like new they had only done 3,000miles by a very carefull owner.

Kept the two Conti Snow tyres i had on my mk1 Leon which had only done 2000miles.
Not refitting them until OEM Michy Tyres are ready for replacement tho. They do help in the winter months mind, i'd highly recc them

Bought a Space Saver Wheel kit complete as trust me you need a spare wheel.

Had the Car serviced at 10,000 miles before xmas & had dealer switch variable servicing
to 10,000miles

Roadtax due end of month..... £20 sweet.....

 

[hutchy14]

I got my 280 on PCP over 4yrs. They said that with doing 28k miles then it would be worth around £12k. I couldn't believe it when they told me haha.

 

[gshaw]

Not a Cupra but my FR was ~21k at the main dealer even after "haggling", same spec (actually turned out to be the exact same car from stock) for 17k.

To get something similar new within 50 miles of where I live from a main dealer "approved used" was around the 15k mark, most of those in less than pristine condition and with the old nav system, older engine etc.

With a cracking price on my old car through Southern Car Buyers, then 0% SEAT HP on the remaining 50% buying new actually made sense in my case. Not intending to sell for 5 years (if not longer).

I can't see why anyone would buy from a dealer once told about the (good) online brokers like Drive the Deal.

Would take a brave manufacturer to do it but would love to see one try something radical and do away with the glass house dealerships, use the internet broker modell in conjunction with smaller service centres and get the initial prices down to where they should be.

 

[LeonFRTDi]

Not a Cupra but my FR was ~21k at the main dealer even after "haggling", same spec (actually turned out to be the exact same car from stock) for 17k.

To get something similar new within 50 miles of where I live from a main dealer "approved used" was around the 15k mark, most of those in less than pristine condition and with the old nav system, older engine etc.

With a cracking price on my old car through Southern Car Buyers, then 0% SEAT HP on the remaining 50% buying new actually made sense in my case. Not intending to sell for 5 years (if not longer).

I can't see why anyone would buy from a dealer once told about the (good) online brokers like Drive the Deal.

Would take a brave manufacturer to do it but would love to see one try something radical and do away with the glass house dealerships, use the internet broker modell in conjunction with smaller service centres and get the initial prices down to where they should be.

Couldnt agree more with your experience.
You do have to keep these NEW cars for longer to get your moneys worth thats the only way.
Depreciation does slow as they get older.
Thats mine just clocked 11,000 today Its like Brand New.
Might keep it 5years & then change it but i'll be selling it privately just the same as the rest when i do.

 

[LeonFRTDi]

I got my 280 on PCP over 4yrs. They said that with doing 28k miles then it would be worth around £12k. I couldn't believe it when they told me haha.

Thought the LEON Range was around 45/47% its value after 3years ?
I think the Mk1 was in the early 50's at the time.
That figure is way lower if thats all there going to give you.

Its £5k or even 7k too dear new then SIMPLES

2005 £15,400 New FR TDI Standard Factory Spec 150hp (Metallic Black) it was extra cost
2015 £22,500 New FR TDI Standard Factory Spec 184hp (Red) Solid Colour no extra cost

2014 Used FR TDI Standard Factory Spec 184hp (Red) Solid Colour no extra
4500miles unmarked like new. direct from SEAT UK to local Dealer £17,700

Theres plenty about just dont but it new Save that VAT Amount you loose anyways.

As long as its under a year old you have all the rest of the 3yr warranty.