Depreciation [Archive] - SaabCentral Forums

: Depreciation


ragtopcav
14th May 2004, 10:13 AM
Whilst we've all been ranting about fuel price in the UK, we've missed a bigger money loser for those whom buy new.
Reading an article in a national rag ;
"the value of a new car is slashed by 21.40 a day in it's firsty six months on the road" :o

" Depreciation wiped an average of 3966 of the 2.5million new cars sold last year"

" Researchers found depreciation is now the biggest single expense of running a new car - equivelant to 66p per mile"

They're eye watering numbers, makes me glad I buy fully depreciated sheds :cheesy: .

Mattlach
14th May 2004, 10:28 AM
Thats nothing new though.

New cars depreciate quicker than computers!

I have never bought a new car for that very reason, and - unless I win the lottery or something - don't think I ever will.

There really is no point to buying a new car over a 2-3 year old car that has already gone through the steep beginning portion of the new car depreciation...

People apparently buy new cars, casue otherwise there would be no used ones, but I can't help but wonder WHY?

Stumpage
14th May 2004, 10:40 AM
People by new because

A) The company buys them

B) You can get some great finance schemes if you are not too bothered about cars and will replace your car with the same make every couple of years.

C) In the UK we have plates that say how old a car is so keeping up with the neighbours is important to some.

Mind you I still can't work out why my collegue has just spent 16K cash on a brand new Ford Focus ST170 when I got a 50K mile 2.5 year old 9-5 Aero from a main dealer for 3 grand less :cheesy:

Mind you he has no idea what I paid for the car and being clueless thinks I must have paid well over 20K ha ha ha

PS. I only do about 5K miles a year so the value shouldn't drop as much as the Ford. I hope :o

Mattlach
14th May 2004, 11:16 AM
Mind you I still can't work out why my collegue has just spent 16K cash on a brand new Ford Focus ST170 when I got a 50K mile 2.5 year old 9-5 Aero from a main dealer for 3 grand less :cheesy:

Exactly.

10 times out of 10, I would go with the better, few years older car, rather than the worse new car...

Nice choice on a vehicle by the way!

Black 9-5 Aero's unite!

AL900S
14th May 2004, 11:33 AM
I've never understood the 'keeping up with the neighbours' mentality of buying new cars because of the latest plate. Reminds me of my schooldays when a friend's father in 1983 had bought a Y plate Lada Riva and looked down at our '75 Model P6 Rover 2200!! A crap car is a crap car whether on the latest plate or not. (OK, Ladas are prob not crap as they are as strong as a tank...but you know what i mean!)

cheers
Al

Stumpage
14th May 2004, 11:43 AM
(OK, Ladas are prob not cr*p as they are as strong as a tank...but you know what i mean!)

No matter how strong they are they are still crap. :nono; Unless you give it to Lotus engineering and spend 100K on it. :cheesy: (Those of us who watch Top gear will know what I'm on about.)

Black 9-5 Aero's unite!

With you brother!!

Alex
14th May 2004, 11:46 AM
3966 is nothing compared to the poor chap who has just suffered 100,000 depreciation in two years ownership of his Pagani Zonda :o :o

Ricky Lake
14th May 2004, 11:47 AM
People by new because

A) The company buys them

B) You can get some great finance schemes if you are not too bothered about cars and will replace your car with the same make every couple of years.

C) In the UK we have plates that say how old a car is so keeping up with the neighbours is important to some.

:o

I'd add...

D) You can't get a 2-3 yr old 93SS Aero Convertible as it was only really available the beginning of the year (and it was the one I wanted...)

I would add that B) was also important to me and that if C) was important to me I'd have probably bought a BMW instead...(and you don't want me to go doing that do you???)

Yeah, I know depreciation will hit me where it hurts (I'm expecting it to drop 13-14k in the 3 years I'll have it...from the price I paid rather than list, if you take list then add an extra 4k to the figure).

Out of interest, does anyone know what figures get used when you get the general depreciation figures? The price people pay for new cars or the list price?

R.

AL900S
14th May 2004, 12:10 PM
Stumpage

Yeah, that 'Lotada' looked pretty good. I'm sure I saw it on Ebay for between 5 and 10k a few months ago. Why sell? It's unique. Some people..... :-?

Cheers
Al

Paco
14th May 2004, 12:11 PM
I hope that one day I'll be rich enough to afford depreciating cars... at the moment I have better things to blow my cash on.

Even in my position I didn't buy 4k of diesel hatch because (among other more sooty reasons) I couldn't bear to sell it in 2 years time for a few hundred pounds.

I may pay twice as much for fuel, but it's more fun than paying for depreciation 8) and my car should still be worth 4k in 2 years time.

ragtopcav
14th May 2004, 12:14 PM
Out of interest, does anyone know what figures get used when you get the general depreciation figures? The price people pay for new cars or the list price?

R.Unfortunatly the tabloid didn't go into detail [ they just don't because the readership has goldfish like attention span, I bet i've gone and upset someone on here with that :roll: ] so i cannot really elaborate, it is fair to say it will be based on the big sellers Mondeo's Astra's 307's etc. There was listed some good buys the BMW Mini Porsche Boxter and the Volvo VX90? these hold there value well.

From a Saab perspective, the verts seem fairly resistant to depriciation, my car is worth [book value] little more than 1500 a vert similar/spec will be in the order of 5000, that is a big difference between 2 cars that were around 20000 new 9-10 years ago.

Mattlach
14th May 2004, 12:57 PM
Unfortunatly the tabloid didn't go into detail [ they just don't because the readership has goldfish like attention span, I bet i've gone and upset someone on here with that :roll: ]

What... one of the many goldfish that read these forums? :cheesy:

But seriously I understand. It really pisses me off that more and more people have the attention span of nats. It shows up everywhere.

Everything from newspapers and magazines to TV shows, movies and computer games are being designed to satisfy nit wits with no attention span, and quite frankly its pissing me off.

johncc
14th May 2004, 01:04 PM
When I bought my 9K CSE for 3400, and being the kind of person for whom spending over 1500 on a car is a lot of money, I kept having "What am I doing??" moments of panic.

Of course, I had all the Parkers etc at the time, and my uncle who has an Alfa asked to have a look at my book. He went rather pale and I said "What's up?". He told me that his Alfa that he paid 14,000 is now worth about 5,000 after about 3 years.

Made me feel better, that his car almost depreciates more in a year than mine cost me!

Even though I still think I paid too much for it, I just think about my uncle and his Alfa and I feel better right away, because even if I did, the difference is peanuts compared to what a new car costs.

Ricky Lake
14th May 2004, 02:13 PM
Out of interest, does anyone know what figures get used when you get the general depreciation figures? The price people pay for new cars or the list price?

R.

From a Saab perspective, the verts seem fairly resistant to depriciation, my car is worth [book value] little more than 1500 a vert similar/spec will be in the order of 5000, that is a big difference between 2 cars that were around 20000 new 9-10 years ago.

I had noticed that verts tend to level off quite a bit - after about 4-5 years the depreciation is fairly gentle (at least compared to the hammering residuals take in the first couple of years :( )

I guess it is horses for courses as well - part of the reason I buy new is beacuase I haven't got time to nurture it and 'tinker' and the reason I haven't got time is 'cos I'm always working... My take is get whichever car you can afford and fits into your lifestyle & interests. I went for about 7 years without spending more than 400 for a car - enjoyed it but as I was a student for a big chunk of that I had the time to work on them when they went wrong (which they did). Those days I was into big old citroens, but I've learnt my lessons and its saabs for me now...

R.

Simon
14th May 2004, 03:11 PM
I bought my old C900 Convertible for 7000 kept it for 3 1/2 years, spent next to nothing on it during that time and sold it for 4800 :D Verts are a good bet for low depreciation!

9-5's are very good value for money at the moment. Paid just over 3k for mine and have voluntarily spent about 2k on bolt on bits for it. If it lasts me 2 years and is worth half that in 2 years time I'll be happy!

I've had my Carlsson for 18 months and it's worth more than I paid for it :cheesy:

Crevalle
14th May 2004, 03:41 PM
Buying new is for suckers.

I guess it can be financially rationalized for people who have no engine knowledge whatsoever and/or no "mechanic" acquaintances (i.e. they cannot afford a used car to break-down).

Mattlach
14th May 2004, 03:49 PM
Buying new is for suckers.

I guess it can be financially rationalized for people who have no engine knowledge whatsoever and/or no "mechanic" acquaintances (i.e. they cannot afford a used car to break-down).

I'd like to think of it as something to do with probability.

(probablility of breakdown)*(cost of repair + cost of temporary replacement vehicle + cost of lost work hours + etc. + etc.)

Maybe if you balance that equation, for some people it makles sense to go new.

Truth is though I got my low milage three year old 9-5 Aero at roughly half the new price of the car when new. I still have a year of warranty left, and its probably not likely to break down anytime soon.

As I see it, the above is a win-win scenario.

fabric
14th May 2004, 05:14 PM
I don't think you can discount the psychological aspect of getting a new car. You know there is nothing wrong with it, it's in perfect condition, and you were able to pick which options you wanted, or get the exact color combo you wanted without having to spend a lot of time looking. You don't have to worry about maintenance, a lot of cars have roadside assistance, many are building in maintenance costs into the purchase price to create the illusion of free maintenance.



If you want to get a car and keep it for 10 years with not having to worry too much about major problems, starting with a new car is probably the way to go. If you start with a 5 year old car, the repair costs of it over 10 years, while not equal to the value of what a new car would be, are definitely going to be a larger part of car owning. Of course, this is a fairly specific example, buying used cars more frequently, or starting with a not as old used car will change this equation.


The main reason I've shied away from new cars isn't so much the depreciation (which is part of it), but just mainly what appears to me as prices that don't seem justified by what you get. A new 9-3 isn't significantly different than my 900 SE when it comes to options and performance. In reality, that actually means the price, in real dollars, has gone down, but I'm still not willing to spend that kind of money for a new car.

Plus the 9-3SS doesn't come in a hatcback.

heavy_t
14th May 2004, 05:25 PM
I've never understood the 'keeping up with the neighbours' mentality of buying new cars because of the latest plate. Reminds me of my schooldays when a friend's father in 1983 had bought a Y plate Lada Riva and looked down at our '75 Model P6 Rover 2200!! A cr*p car is a cr*p car whether on the latest plate or not. (OK, Ladas are prob not cr*p as they are as strong as a tank...but you know what i mean!)

cheers
Al

Totally agree with all of that. I've driven or been in a few new cars recently and not been that impressed by any of them. Compared with my c900 most have poor build quality and/or nasty interiors. Usually they are more complex and thereby have more to go wrong. :roll:

Personally I don't aspire to new cars or snobbery at all. If people want to make judgements or assumptions about me because I drive a 500 car then it's their problem really :lol: I'm happier in something like a c900 where you don't see scores of identical models to yours on every drive to work......

EDIT: I realise I'm probably right down the "old banger" end of this debate :oops:

ragtopcav
14th May 2004, 05:28 PM
I
Plus the 9-3SS doesn't come in a hatcback.it does, it's called the Vauxhall Signum (http://images.google.com/imgres?imgurl=www.ananova.com/images/web/26487.jpg&imgrefurl=http://www.ananova.com/news/story/sm_654602.html%3Fmenu%3D&h=500&w=410&sz=40&tbnid=s8Lu38tyi_AJ:&tbnh=126&tbnw=104&start=23&prev=/images%3Fq%3Dvauxhall%2Bsignum%26start%3D20%26hl%3 Den%26lr%3D%26ie%3DUTF-8%26sa%3DN) GM have now got Vauxhall Opel knocking out quircky hatches with long noses :roll: , epsilon platform just like the 9-3ss, about 60% commonality, oh yes the V6 is back with a longer timing belt than before :o

fabric
14th May 2004, 05:40 PM
it does, it's called the Vauxhall Signum (http://images.google.com/imgres?imgurl=www.ananova.com/images/web/26487.jpg&imgrefurl=http://www.ananova.com/news/story/sm_654602.html%3Fmenu%3D&h=500&w=410&sz=40&tbnid=s8Lu38tyi_AJ:&tbnh=126&tbnw=104&start=23&prev=/images%3Fq%3Dvauxhall%2Bsignum%26start%3D20%26hl%3 Den%26lr%3D%26ie%3DUTF-8%26sa%3DN)

Blech, it is ugly.

Alex
14th May 2004, 06:31 PM
When I bought my T16S seven or so years ago a friend of mine bought a brand new Vauxhall Astra. I paid 3.5K for mine whereas he paid over 10K. Last year he replaced the car, and traded the old one in. He got 900! The gearbox had also started to fail which really prevented him from a private sale.

My T16S is still probably worth around the 2K ish level. I certainly haven't spent 9 grand on it over the last 7 years, and it has certainly given me more pleasure than buying a new bland mobile.