Depriciation!?

[mole]

ok, since buying my 57 plate fabia3 1.9TDI new for about 13k we have had a baby and can do with a bigger boot, went into skoda today to look at getting somthing with a boot, be it the estate fabia or a Octavia. anyway, found out we owe £8,700ish on the finance we got and the dealer said that my car is worth about £1k less than that :eek: it only has 15k on the clock give or take. can that be right???? i would of thought it would of been worth 10k all day long!

[JaneC]

This is what Glasses say (from Vauxhall website)

Skoda Fabia 3

1.9TD Diesel 5-door Hatchback

5 Speed Manual Front Wheel Drive

Year: 2007 57

Mileage: 12,000

Part-exchange Price:

Excellent condition:

£8530

Average condition:

£7770

Below average condition:

£6840

:(

[Dr Zoidberg]

Of the 13k price there's £1950 of VAT included.

From your point of view that's lost immediately you buy the car so the depreciation in the first year is always the worst.

Once you take the VAT off that's basically an 11k car you bought so there's no way a dealer would offer you 10k after a year. Privately you should see 9.5 *if* you can find a buyer.

It's not far off book price I'm afraid so if you can't sell it privately for a good sum then you'll be best off sticking with it for a year or so.

Vehicle summary

Skoda Fabia 3

1.9TD Diesel 5-door Hatchback

5 Speed Manual Front Wheel Drive

Year: 2007 57

Mileage: 15,000

Estimated value of your car

Part-exchange Price:

Excellent condition:

£8380

Average condition:

£7640

Below average condition:

£6720

[mole]

oh well, looks like i'll have it for aother 12 months!

[redbaron]

something is worth what someone will pay for it.....

having said that if the dealer wants your business they will work with you to make that 1k disappear... especially fi you are less choosy about colour spec etc

[mole]

yeah, skoda could make it go, but there wasnt realy a car that stood out to me tbh, so might be looking at a VW or SEAT. going round the car show rooms tomorrow to have a look,

[helix]

yeah, skoda could make it go, but there wasnt realy a car that stood out to me tbh, so might be looking at a VW or SEAT. going round the car show rooms tomorrow to have a look,

Mole, did you know there's a facelifted Octavia out in the new year?

You might want to wait till then anyway and see if it appeals to you as you're undecided at the moment.

[Decron]

You should consider a Roomster. It will probably be ideal for your needs.

[Guest]

Mole, yes that sounds about right value wise. Remember, biggest drop in value for any car is during the first 12 months...doesn't really matter if you are keeping it over a long period. At the end of the second year you will see the price stabilise somewhat.

A friend with a Merc 500CLK (£48k paid for it new 2yrs ago) has just been offered £11,900 for it on a trade in against another 50K car. Is that crazy or what!

Personally, I would recommend the Fab 2 TDI Estate for your new situation, masses and masses of room everywhere...try one! But then, I'm biased as I love mine!

[snownrock]

This is putting me off buying new, but then who doesnt know about depriciation, but there are some cracking deals at the minute of the Fab estate and Roomster... choices choices.

[Hearny]

I agree, if you bought 12 months ago (I did) you can get a much better deal now. I have to say within 6 months of buying mine, I could have got 0% finance and probally a lower purchase price. The dealers are desparate for your custom, they aint shifting many cars.

[Guest]

Unlike motorcycle dealers who are having a good time still with some increasing their business as car buyers turn more to motorcycles and scooters!

[Decron]

I had a fantastic deal on mine exactly 12 months ago and despite some slightly higher than expected depreciation I am still in good shape especially as I plan to be owning the car over the next 5 years minimum.

If you want to feel conned about buying a car, go and buy a new Citroen. A one year old C4 VTR+ will loose you about 45-50% when trading in.

[HZ123]

Today, like yesterday and tomorrow is the wrong time to be selling or part exing a car. It probably is going to get a lot worse and the industry must have some real concerns.

[mole]

well ive decided to keep it for 18months ish untill near the end of my PCP, then going to buy new again

in vw today he hold me that my car is losing nearly £400 a month and he advised me to come back near the end of the 3yr PCP and the chances are i'll be better off and not in negative equaty(sp)

[daveclayton]

part ex'd fabia 3 wwith all the gadgets is now on the seat forecourt for 9995. about 4 months old, 5000 miles

[Black]

I am sorry to say but I really doubt you will be in positive equity in 18 months time. If so it is going to be marginal.

Also consider the extra interest you are going to pay to the end of the deal. What is your GFV?

[Decron]

What is your GFV?

She isn't worth much, maybe a few quid. She scrubs up quite well though and she does know how to use a mop so maybe a bit more than I thought.

Edited 14 October, 2008 by Decron

[snownrock]

Boom Boom

[Tom_vRS]

Depreciation sucks. Buying new cars and not keeping them for atleast 2/3 years is a guaranteed way to become very poor! There are of course exceptions such as cars with long waiting lists, but these are few and far between.

I paid £9600 for a brand new Corsa CDTI SXI+ with leather and a/c in 2006. It listed at over £13k so got a good deal. It gave me backache to drive and had to part ex it just 6 weeks later, got £7700 for it. Imagine if I'd paid list! :eek:

Dad likes his Citroens. He paid £13k for his Xsara back in Sept 2004. Its done 32k and hes just been offered £1800 p/x from the same dealer. Shopping around shows this really is what its worth, hence hes decided to keep it which has worked out ok for me as hes letting me use it for run around journeys leaving mine for longer runs only and "fun" duties

Depreciation is a fact of life, and a bitter pill to swallow. Unless you drive an old bangor or something a bit special its the biggest cost of owning a car, completely shadowing fuel economy differences between models, road tax etc...

[Guest]

A few years back when running our business, my wife and I used to change our vehicles every 12-18 months. The mileage on each vehicle would be average. It cost us a lot obviously...but we got good deals each year from our dealer. It was a case of give a chunk of our profit to the tax man or drive around in a new car instead (car being a business asset)...a no brainer!! We no longer have the business and we don't have that tax incentive to change each year, so we just buy a motor and run it for around 6-7 years each time. Except we now have the Fabia 2 Estate diesel 1.4, and we intend to keep that for at least 10 years...unless it turns out to be a dog! Might keep it even longer. That's why we bought a Skoda for it's build quality etc.

But my point here is...we have found motoring costs are in the main very cheap if you keep a motor. Higher servicing costs as the vehicle ages still have proven less than the cost of changing a vehicle every 12-18 months. Depreciation is no longer a problem as such. Make the motor work for you! Just saying how it works for me!

[mole]

I am sorry to say but I really doubt you will be in positive equity in 18 months time. If so it is going to be marginal.

Also consider the extra interest you are going to pay to the end of the deal. What is your GFV?

well in 2 years i have a guaranteed value of £5.7k ish so if my car is only worth 7.7/7.9 now its only going to lose 2k in 2 years if you think of it that way. but i still owe 8.7k ish paying 145 over 24 months = £3.4k take away from the 8.7 and i'll owe 5.3 after the 3 years of payment, giving me a slight profit of £400! WOOOOOOOOOOOOOOT

you always expect depriciation when you buy new cars just didnt expect 5kish in 12 months :eek:

Edited 15 October, 2008 by mole

[HZ123]

Mole ; Is that quote as safe as a bank quote. I fear neither is because your quote is against what they wish to sell you. It is all relative, the plus point is in the climate for the next 2-3 years new car values will remain dormant. Just listenning to the business news and all the gains of the week are almost gone.

[mole]

no its guaranteed, thats why its called a guaranteed future value :P

[markmi]

do you know about the half three quarters rule on hp agreements, have a look on your agreement when you hit the point of having cleared half the value of the car you can give it back and walk away, normally works out to about 2 years into your hp/pcp agreement, look it up on the net and check your hp/pcp paperwork or even ring your hp company.