Depreciation Proof Cars
Discussion
I've been lucky over the last 10 to 15 years with owning cars that I use as daily drivers which have either held their value through my time with them, or I actually sold them for more than I paid. Specifically a 205 GTi, mark 1 Elise 111S, an R53 Mini Cooper S, e46 M3, 996 Carrera etc.
I've had the 996 for five years now and I'm looking to replace it with another car that is more of an asset than a liability. My budget is not too extravagant, I could stretch to £35k but I'd feel safer spending less. (Needs to be a four seater too.)
At the top end of my budget I'm thinking of a Yaris GR, or a manual M2 Competition. What are peoples thoughts on depreciation for these?
Any other cars I should be considering?
I've had the 996 for five years now and I'm looking to replace it with another car that is more of an asset than a liability. My budget is not too extravagant, I could stretch to £35k but I'd feel safer spending less. (Needs to be a four seater too.)
At the top end of my budget I'm thinking of a Yaris GR, or a manual M2 Competition. What are peoples thoughts on depreciation for these?
Any other cars I should be considering?
Acapulco99 said:
blue_haddock said:
Both of those may well depreciate quite a bit once the current price bubble pops when car production gets back to normal.
I very much disagree. Production of both has ceased and they are immensely popular.There's currently 65 Yaris GR for sale on AT. A few of them have been on sale since July.
There's 211 M2 Comps on AT. There's also cars been on sale since June 2021.
There is no lack of supply of these cars to keep prices high.
Driver101 said:
Acapulco99 said:
blue_haddock said:
Both of those may well depreciate quite a bit once the current price bubble pops when car production gets back to normal.
I very much disagree. Production of both has ceased and they are immensely popular.There's currently 65 Yaris GR for sale on AT. A few of them have been on sale since July.
There's 211 M2 Comps on AT. There's also cars been on sale since June 2021.
There is no lack of supply of these cars to keep prices high.
I'm not saying these cars won't depreciate but I do think the depreciation will be mininal compared to almost everything else.
Acapulco99 said:
Driver101 said:
Acapulco99 said:
blue_haddock said:
Both of those may well depreciate quite a bit once the current price bubble pops when car production gets back to normal.
I very much disagree. Production of both has ceased and they are immensely popular.There's currently 65 Yaris GR for sale on AT. A few of them have been on sale since July.
There's 211 M2 Comps on AT. There's also cars been on sale since June 2021.
There is no lack of supply of these cars to keep prices high.
I'm not saying these cars won't depreciate but I do think the depreciation will be mininal compared to almost everything else.
Prices are just silly at the moment. I wouldn't buy anything with the prediction that depreciation won't be an issue. The entire car market is vastly overpriced.
Ford RS are normally a good buy depreciation wise, they seem to depreciate slower than similar cars and then slowly creep back up.
Saw the same with the Mk1 and Mk2 focus RS pre covid
I bought a 2017 mk3 Focus RS 2 years ago pre covid and prices were still strong although they were creeping down but still better than the competition.
Debating whether to sell mine for 5k more than I bought it, but there's nothing out there that really grabs me, looked at the GR yaris, but seems too similar to what I already have.
Saw the same with the Mk1 and Mk2 focus RS pre covid
I bought a 2017 mk3 Focus RS 2 years ago pre covid and prices were still strong although they were creeping down but still better than the competition.
Debating whether to sell mine for 5k more than I bought it, but there's nothing out there that really grabs me, looked at the GR yaris, but seems too similar to what I already have.
Driver101 said:
Acapulco99 said:
blue_haddock said:
Both of those may well depreciate quite a bit once the current price bubble pops when car production gets back to normal.
I very much disagree. Production of both has ceased and they are immensely popular.There's currently 65 Yaris GR for sale on AT. A few of them have been on sale since July.
There's 211 M2 Comps on AT. There's also cars been on sale since June 2021.
There is no lack of supply of these cars to keep prices high.
But as suggested there will always be a new must have car, I remember when the new beetle came out and even the first LHD cars were going for daft money, then the TT came out and they held their value initially.
Once car production has caught up, things will change and a lot of the cars bought during the bubble will land owners in negative equity.
Driver101 said:
The MK3 RS was going down prior to the Covid effect. I think all the better hot hatchbacks have seen large jumps. There is 5 year old Civic Type R for more than they cost when brand new.
Prices are just silly at the moment. I wouldn't buy anything with the prediction that depreciation won't be an issue. The entire car market is vastly overpriced.
Totally agree, prices are crazy and I wouldn’t be buying now, I was lucky enough to get a nice XKR just before prices went silly, the same car would now would be a lot more now but prices will come back downPrices are just silly at the moment. I wouldn't buy anything with the prediction that depreciation won't be an issue. The entire car market is vastly overpriced.
Define low depreciation:
Drops little in absolute value if sold.
Drops little in inflation linked value when sold.
Holds a value close to the cost of replacing with a similar model’s price today.
It all depends how you want to measure it, and what you are doing next with the money gained by selling.
Drops little in absolute value if sold.
Drops little in inflation linked value when sold.
Holds a value close to the cost of replacing with a similar model’s price today.
It all depends how you want to measure it, and what you are doing next with the money gained by selling.
Pica-Pica said:
Define low depreciation:
Drops little in absolute value if sold.
Drops little in inflation linked value when sold.
Holds a value close to the cost of replacing with a similar model’s price today.
It all depends how you want to measure it, and what you are doing next with the money gained by selling.
The motor trade defines depreciation as non-inflation adjusted value in the currency of the country in which the car was bought. It's a simple enough definition that is independent of wage or price inflation, currency fluctuation, opportunity cost or any other variable other than the ability of one car to store value relative to another one.Drops little in absolute value if sold.
Drops little in inflation linked value when sold.
Holds a value close to the cost of replacing with a similar model’s price today.
It all depends how you want to measure it, and what you are doing next with the money gained by selling.
chris bayliss said:
At the top end of my budget I'm thinking of a Yaris GR, or a manual M2 Competition. What are peoples thoughts on depreciation for these?
Any other cars I should be considering?
I thought BMW hadn't ruled out another M2 off the new 2 G42 series. Any other cars I should be considering?
Toyota have been recently showing off an upgraded Yaris GR, maybe they'll put it into production, maybe its just a one off concept. It has been seen testing at the ring, which surely suggests they have plans for it beyond just trade shows.
Wouldn't something like a RS Megane would be more depreciation proof for a recent "hot" small car. It'll still loose money just not as quickly.
If I had £35k for a car, needed something at least as practical as a 996, and wanted minimal depreciation, I'd be going for an Evora. I've had one on my list for years (until I bought my most recent car) and they've been so flat, pre-COVID. And they're a great car. Get a good one, and I'd wager <£1k a year in depreciation, if not staying flat. I'd expect it to out perform a GR Yaris or M2C
Very difficult to tell at the moment. Most cars bought in the last 3 years are worth at least what people paid for them. I bought a 2017 fiesta ST3 in July 2020 for £9k, that was from a Ford main dealer too. Same cars are now advertised for £11-12k. But it's much like anything else.
Pre pandemic I've always felt the best way to avoid big depreciation is not to spend a lot in the first place. It seemed the more you spent the more you'd lose. That is unless you bought an old high performance car in which case you're paying high running costs instead.
Now it all depends on whether or not there's going to be any bizarre correction or if high prices are here to stay. In a way I feel prices won't drop as much because new cars will get more and more expensive and people are prepared to pay for them, usually by simply taking finance.
It's all a gamble but if you really want to avoid depreciation you need to be buying something around 15 years old that's lost as much of its value as it ever will.
Pre pandemic I've always felt the best way to avoid big depreciation is not to spend a lot in the first place. It seemed the more you spent the more you'd lose. That is unless you bought an old high performance car in which case you're paying high running costs instead.
Now it all depends on whether or not there's going to be any bizarre correction or if high prices are here to stay. In a way I feel prices won't drop as much because new cars will get more and more expensive and people are prepared to pay for them, usually by simply taking finance.
It's all a gamble but if you really want to avoid depreciation you need to be buying something around 15 years old that's lost as much of its value as it ever will.
I've no idea, but can't help thinking you could do worse than keeping your 996!
I bought a BMW Z4M Coupe 2 years ago and it's probably worth a fair bit more now than I paid, but I've spent a few grand on maintenance. But then I bought it because I have wanted one for years, not in the hope it may be an investment.
I bought a BMW Z4M Coupe 2 years ago and it's probably worth a fair bit more now than I paid, but I've spent a few grand on maintenance. But then I bought it because I have wanted one for years, not in the hope it may be an investment.
We’re due an S58 powered M2 soon, provided they don’t totally hash the looks, it will probably be more desirable than the N55, thus hitting current prices.
That’s a nice mix of daily drivers you’ve had. I wish I could have something a little more compromised as my daily.
That’s a nice mix of daily drivers you’ve had. I wish I could have something a little more compromised as my daily.
Edited by JAMSXR on Monday 24th January 10:33
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