Time to sell your 4 x 4

[jonceebee]

Good to see this in the Daily Mail e-pages

http://www.dailymail.co.uk/money/cars/article-2297506/Top-cars-hold-value-best-4x4s-dominating--plummeted-fastest.html

Gives you a warm feeling of doing the right thing

[BossFox]

99% after a year, clearly they are deluded.

[Macdemon]

99% after a year, clearly they are deluded.

Not deluded BossFox, they know a good deal when they see one

[Dinski]

Mine depreciated around £500 after 16 months. Oh and it's 2wd.

Edited 3 April, 2013 by Dinski

[BossFox]

I don't get it.

Who is going to pay the cost of a new car less £500 for one over a year old?

A dealer will want at least £1000 to buy a car in and sell it on usually. My one year old 170 4x4 books about £5k lost in a year/18k miles if I traded it into a dealer, partly I will admit due to extensive option box ticking.

[Rgh999]

I don't get it.

Who is going to pay the cost of a new car less £500 for one over a year old?

A dealer will want at least £1000 to buy a car in and sell it on usually. My one year old 170 4x4 books about £5k lost in a year/18k miles if I traded it into a dealer, partly I will admit due to extensive option box ticking.

It may be only £500 less but if the waiting list for a new one is maybe 6-9 months then people will pay to get it now rather than wait. Provided of course it's a good low mileage example.

[Dinski]

Probably should have said I saved a fair amount off the retail price by buying it pre registered, so the price I paid was less but still it's only £500 less than what I paid.

[BossFox]

That's what I'm struggling with.

I understand you got a good deal by buying a demo car, probably when it was three months old.

But why would anyone pay almost the same for a car over a year old with two previous owners?

Baring in mind they'd have to buy it privately from you (no dealer facilities) as a dealer would need to earn a slice if they bought it, so that would cut into the value.

It's not that I am being funny, but I just don't get where/how people are going to sell these Yetis on and lose nearly nothing.

When we part exchanged my wife's 60 plate for a 12 plate, we took a car we'd paid £16k for back to the dealer with low mileage. They gave us back £13k and sold it for £14k at 18 months old.

There is no way it would have sold for £15.5k privately.

I am curious where these "it's lost next to no money" valuations are coming from.

Edit: the waiting list is shorter now too.

[Kiwibacon]

I am curious where these "it's lost next to no money" valuations are coming from.

Edit: the waiting list is shorter now too.

My guess. Those who used to value real estate.

[The Plumber]

My first Yeti depreciated at a rate of £80 a month and was sold at 15 months old for about what I paid for it new I understand

TP

[999pooch]

I think the best buy has got to be a 12 month old Volvo T6.

A £40k car for a smidge over £10k. Absolute bargain - if they exist at that price of course.

[7029bob]

3 years ago I paid £13,500 for a 1.2Tsi S, it was a demo with 250mls on the clock.

I did 21,000 mls in the car and have recently traded it in for a new yeti .

My original car is now on the garage forcourt at £13,995 almost £500 more than I originaly paid for it.

Even if you take into acount a reasonable drop in price for the new owner haggling it has held its price better than any other car I've owned in over forty years of driving.

No doubt the market will drop quite sharply when the revised model comes on line.

[BossFox]

I think the best buy has got to be a 12 month old Volvo T6.

A £40k car for a smidge over £10k. Absolute bargain - if they exist at that price of course.

I think that's what's called "off topic"'

[kibby]

Taking a simplistic calculation of VAT at 20% for a £20k car this alone is £1000's (I know it's not as simple as 20% of £20k) no dealer is going to give you that back..

If trade in figures we have been given are typical we would get from our Skoda dealer no better a deal than any other car trade in.

Edited 4 April, 2013 by kibby

[BossFox]

Taking a simplistic calculation of VAT at 20% for a £20k car this alone is £1000's (I know it's not as simple as 20% of £20k) no dealer is going to give you that back..

If trade in figures we have been given are typical we would get from our Skoda dealer no better a deal than any other car trade in.

Owing to VAT on cars not being reclaimable it doesn't work like that.

They are worth what people are prepared to pay, with the dealer earning enough to make it worth their while turning the car around to a new customer.

[Truthseeker]

I entirely agree with BossFox on this one. 99% resale after 1 year is "cloud cuckoo land".

Is this what a private individual would achieve (doubt it), or what the dealer would sell for. I could imagine a scenario where, let's say a new £20k Yeti in 2012, is advertised by a dealer for maybe £19995, but the dealer would factor in maybe around £1k haggle money for a customer with no p/ex, and be happy to get £19k. He would have paid around the £17K mark as a trade sale or p/ex (although the p/ex customer would have been led to believe they got more - don't ask!).

Anyway, if the 99% headline price is the dealer advertised price, then quite possibly statement is true. It cannot be the private or p/ex price, which is always at least 10% below what a dealer would sell for, but in reality will be more than 10% less.

Perhaps the guys at Preston Motors could give us their take on this topic.

[999pooch]

I think that's what's called "off topic"'

Its in the article posted by the OP

[JCP]

I am just wondering if this debate may only reflect the apparent source? I have never regarded the Mail as a helpful foundation for any informed discussion and suspect it is no more authoritative on the motor trade than on any other topic.

[Dinski]

Boss fox, I agree it seems hard to believe I was a little in shock when I part x'd the car. but the car I bought was registered and was about to be used as a demo, it had 12 miles on it. I think I saved around £800 from the retail price, and ie just part x the car and they have given me £500 less than I paid.

However the dealer I bought that car from offered me 3000 less.

The dealer I took the deal with said they couldn't get inuff white yetis in, they said they could charge nearly new prices for them.

I do agree it sounds crazy.

[Truthseeker]

Boss fox, I agree it seems hard to believe I was a little in shock when I part x'd the car. but the car I bought was registered and was about to be used as a demo, it had 12 miles on it. I think I saved around £800 from the retail price, and ie just part x the car and they have given me £500 less than I paid.

However the dealer I bought that car from offered me 3000 less.

The dealer I took the deal with said they couldn't get inuff white yetis in, they said they could charge nearly new prices for them.

I do agree it sounds crazy.

Maybe time to get rid of my White Urban then - only joking. But I do agree that any white car seems to attract a premium these days, or at least is a lot easier to sell (especially with black alloys). All 3 of our cars are white with black alloys - sort of family identity.

[BossFox]

Looks like I picked the "wrong" colour!

[LeeHarrison]

Truthseeker I shall give you 'my' thoughts.

99% is completely unrealistic. As mentioned it is more than likely to be the dealer advertised price.

If a customer were to ask me to value their Yeti a year down the line based on 99% retention I'd keel over. Or if they mentioned that the Daily Fail said it would hold 99% of it's value, I'd personally drive them to DF HQ and ask the journalist to buy the car off of them

We're all here to make money, I can't agree with you that a car @ £20k would get a price decrease of £1k though.

Richard knows how much we sold his wifes last Yeti for, and he's mentioned it above. Yes, on paper we earned £1,000 but then there's the tax man to have his cut, the workshop time for service etc, valet, maybe a bit of fuel, all the little bits add up.

Every dealer will work differently though, some dealers may want a BIG profit, but sit on a car for months whereas others would rather earn less per car but work on quick turnovers.

My 2p's worth.

[LeeHarrison]

Just to add another point. There was a time, and a lot of you know it well, when there was a 6 - 9 month lead time.

Around this time there were Yetis out there being offered for new or in some cases over new money but people were prepared to pay it as they didn't want to wait.

Madness, I agree, but each to their own I suppose.

[BossFox]

Richard knows how much we sold his wifes last Yeti for, and he's mentioned it above. Yes, on paper we earned £1,000 but then there's the tax man to have his cut, the workshop time for service etc, valet, maybe a bit of fuel, all the little bits add up.

Which I personally have absolutely no problem with, just for the record.

People often underestimate how much it costs to run a business.

[AlleyCat`]

I'm curious about how margins become "better" with cars once they become more widely available.

If you look at some of the brokers now you can get between 1,500 and 2,500 off most of they yeti range but 12 to 18 months ago you couldn't get a penny off.

I don't expect a local dealer to be able to compete directly on "price" with a broker price but maintaining 99% on a year old vehicle is obviously horlicks when you can get around 5% to 8% off list.