Ludicrous car value depreciation we seem to happy to accept!
Discussion
A mate has a 2019 BMW X3M he bought new. A fine car which was far more rapid than i had expected. With 503 bhp it was always going to be quick but i was impressed with how it went, from just 3 litres and 6 cylinders. Damn fast.
But then he mentioned that expected depreciation on the car (he doesn't care, he's loaded big time) is £45,000 in the first 3 years. He got that from Parkers and i confirmed it by looking at a couple of car magazines.
Forty-five grand loss in 3 years??? That's £300 a week by my maths, on TOP of the fairly steep ownership costs of fuel, insurance, tax and servicing. Whilst i was having a look at the subject, an Audi A8 2018 a customer owns will lose over £60,000 in 4 years. Jeezus H!
I've been buying used, including Cat D and Cat N, for decades now and i did the right thing. When i think how much car i got for £32,000 e g.
WHY do great cars become so worthless overnight? They seemed to be designed to last 15 years or more so why are they worth so little whilst still so young, e g, 3 years old?
But then he mentioned that expected depreciation on the car (he doesn't care, he's loaded big time) is £45,000 in the first 3 years. He got that from Parkers and i confirmed it by looking at a couple of car magazines.
Forty-five grand loss in 3 years??? That's £300 a week by my maths, on TOP of the fairly steep ownership costs of fuel, insurance, tax and servicing. Whilst i was having a look at the subject, an Audi A8 2018 a customer owns will lose over £60,000 in 4 years. Jeezus H!
I've been buying used, including Cat D and Cat N, for decades now and i did the right thing. When i think how much car i got for £32,000 e g.
WHY do great cars become so worthless overnight? They seemed to be designed to last 15 years or more so why are they worth so little whilst still so young, e g, 3 years old?
BroadsRS6 said:
A mate has a 2019 BMW X3M he bought new. A fine car which was far more rapid than i had expected. With 503 bhp it was always going to be quick but i was impressed with how it went, from just 3 litres and 6 cylinders. Damn fast.
But then he mentioned that expected depreciation on the car (he doesn't care, he's loaded big time) is £45,000 in the first 3 years. He got that from Parkers and i confirmed it by looking at a couple of car magazines.
Forty-five grand loss in 3 years??? That's £300 a week by my maths, on TOP of the fairly steep ownership costs of fuel, insurance, tax and servicing. Whilst i was having a look at the subject, an Audi A8 2018 a customer owns will lose over £60,000 in 4 years. Jeezus H!
I've been buying used, including Cat D and Cat N, for decades now and i did the right thing. When i think how much car i got for £32,000 e g.
WHY do great cars become so worthless overnight? They seemed to be designed to last 15 years or more so why are they worth so little whilst still so young, e g, 3 years old?
Compared to most consumer goods cars are OK, at least there's a ready market for second hand. But then he mentioned that expected depreciation on the car (he doesn't care, he's loaded big time) is £45,000 in the first 3 years. He got that from Parkers and i confirmed it by looking at a couple of car magazines.
Forty-five grand loss in 3 years??? That's £300 a week by my maths, on TOP of the fairly steep ownership costs of fuel, insurance, tax and servicing. Whilst i was having a look at the subject, an Audi A8 2018 a customer owns will lose over £60,000 in 4 years. Jeezus H!
I've been buying used, including Cat D and Cat N, for decades now and i did the right thing. When i think how much car i got for £32,000 e g.
WHY do great cars become so worthless overnight? They seemed to be designed to last 15 years or more so why are they worth so little whilst still so young, e g, 3 years old?
Try that with a sofa.
BroadsRS6 said:
A mate has a 2019 BMW X3M he bought new. A fine car which was far more rapid than i had expected. With 503 bhp it was always going to be quick but i was impressed with how it went, from just 3 litres and 6 cylinders. Damn fast.
But then he mentioned that expected depreciation on the car (he doesn't care, he's loaded big time) is £45,000 in the first 3 years. He got that from Parkers and i confirmed it by looking at a couple of car magazines.
Forty-five grand loss in 3 years??? That's £300 a week by my maths, on TOP of the fairly steep ownership costs of fuel, insurance, tax and servicing. Whilst i was having a look at the subject, an Audi A8 2018 a customer owns will lose over £60,000 in 4 years. Jeezus H!
I've been buying used, including Cat D and Cat N, for decades now and i did the right thing. When i think how much car i got for £32,000 e g.
WHY do great cars become so worthless overnight? They seemed to be designed to last 15 years or more so why are they worth so little whilst still so young, e g, 3 years old?
Maybe people just don’t want a used 3 year old X3M? If lots of people did the values would stay higher. But then he mentioned that expected depreciation on the car (he doesn't care, he's loaded big time) is £45,000 in the first 3 years. He got that from Parkers and i confirmed it by looking at a couple of car magazines.
Forty-five grand loss in 3 years??? That's £300 a week by my maths, on TOP of the fairly steep ownership costs of fuel, insurance, tax and servicing. Whilst i was having a look at the subject, an Audi A8 2018 a customer owns will lose over £60,000 in 4 years. Jeezus H!
I've been buying used, including Cat D and Cat N, for decades now and i did the right thing. When i think how much car i got for £32,000 e g.
WHY do great cars become so worthless overnight? They seemed to be designed to last 15 years or more so why are they worth so little whilst still so young, e g, 3 years old?
Look at in-demand car by comparison like some of the Porsches
Probably highlights how overpriced they are to begin with. There are big discounts available on the larger German stuff from new, even more so for nearly new. This has always been the case really. It's possibly more apparent now because more vehicles are financed so more attention is paid to GFVs and monthlies.
Many list prices are silly now:
BMW 420d M Sport Pro Ed Coupe Auto (Diesel xDrive 2.0L 190PS 2dr 135g/km):
£49,480
Many list prices are silly now:
BMW 420d M Sport Pro Ed Coupe Auto (Diesel xDrive 2.0L 190PS 2dr 135g/km):
£49,480
Because the market for hi spec, hi perfomance, hi running costs cars is small.
Big engined gas guzzlers are just not desireable. Has always been the way
I bought my Panamera Turno S at 6 yrs old & 12k on the clock, it had shed around 6 quid oer mile...... .
To add the people that buy these things new generally have money to burn so depreciation is just not an issue.
Big engined gas guzzlers are just not desireable. Has always been the way
I bought my Panamera Turno S at 6 yrs old & 12k on the clock, it had shed around 6 quid oer mile...... .
To add the people that buy these things new generally have money to burn so depreciation is just not an issue.
In reality the depreciation is a fair bit lower if you take into account the readily available discounts you can achieve. The X3M in your example can be purchased with the best part of £20k off, so in reality if you buy properly you’ll “only” lose £25k.
Similar for the Audi and many others, basing depreciation of an inflated RRP isn’t reflective of the market.
Similar for the Audi and many others, basing depreciation of an inflated RRP isn’t reflective of the market.
BroadsRS6 said:
A mate has a 2019 BMW X3M he bought new. A fine car which was far more rapid than i had expected. With 503 bhp it was always going to be quick but i was impressed with how it went, from just 3 litres and 6 cylinders. Damn fast.
But then he mentioned that expected depreciation on the car (he doesn't care, he's loaded big time) is £45,000 in the first 3 years. He got that from Parkers and i confirmed it by looking at a couple of car magazines.
That's because it's crap. See :-But then he mentioned that expected depreciation on the car (he doesn't care, he's loaded big time) is £45,000 in the first 3 years. He got that from Parkers and i confirmed it by looking at a couple of car magazines.
https://www.topgear.com/car-reviews/bmw/x3-m
Far from M Division’s finest hour. Fast, but you couldn’t live with the ride
robinessex said:
Far from M Division’s finest hour. Fast, but you couldn’t live with the ride
Sounds like everything they sell at the moment with an M badge.The likes of Lotus have repeatedly demonstrated that you don't need to shake all your fillings out to have decent handling, but BMW seem absolutely determined to send the message that unacceptably hard = better handling.
It's amazing that Alpina can make the same car handle well without shaking anyone's eyes out of their skull...
Miserablegit said:
Depreciation is only a factor if the car is being sold after 3 years - keep running it and it’s only a “paper” loss- it will still be the same car.
Don’t understand the need to change a car every five minutes but that’s just me.
Coz it's a BMW, and it's going to repeatedly break after 3 or 4 years. Don’t understand the need to change a car every five minutes but that’s just me.
BroadsRS6 said:
A mate has a 2019 BMW X3M he bought new. A fine car which was far more rapid than i had expected. With 503 bhp it was always going to be quick but i was impressed with how it went, from just 3 litres and 6 cylinders. Damn fast.
But then he mentioned that expected depreciation on the car (he doesn't care, he's loaded big time) is £45,000 in the first 3 years. He got that from Parkers and i confirmed it by looking at a couple of car magazines.
Forty-five grand loss in 3 years??? That's £300 a week by my maths, on TOP of the fairly steep ownership costs of fuel, insurance, tax and servicing. Whilst i was having a look at the subject, an Audi A8 2018 a customer owns will lose over £60,000 in 4 years. Jeezus H!
I've been buying used, including Cat D and Cat N, for decades now and i did the right thing. When i think how much car i got for £32,000 e g.
WHY do great cars become so worthless overnight? They seemed to be designed to last 15 years or more so why are they worth so little whilst still so young, e g, 3 years old?
A thread about expected depreciation?But then he mentioned that expected depreciation on the car (he doesn't care, he's loaded big time) is £45,000 in the first 3 years. He got that from Parkers and i confirmed it by looking at a couple of car magazines.
Forty-five grand loss in 3 years??? That's £300 a week by my maths, on TOP of the fairly steep ownership costs of fuel, insurance, tax and servicing. Whilst i was having a look at the subject, an Audi A8 2018 a customer owns will lose over £60,000 in 4 years. Jeezus H!
I've been buying used, including Cat D and Cat N, for decades now and i did the right thing. When i think how much car i got for £32,000 e g.
WHY do great cars become so worthless overnight? They seemed to be designed to last 15 years or more so why are they worth so little whilst still so young, e g, 3 years old?
Like others have said the X3M was discounted by £20k. The cheapest X3M on AT is £50k. For those that got the normal discounts the depreciation for a 69 plate car is small.
The real depreciation over 3 years won't be anywhere close to £45k.
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