Booked at £16k @ 4 months old with 4k miles and excellent condition.

Was expecting a fair old drop but a 7k loss in 4 months isnt v good and think future residuals for the regular Mk3's is a little questionable. My 1 year old £20k mk2 vRS with 11k miles fetched slightly more just as a reference.

Expect the vRS with the current demand outstripping supply will fair better...

Nearly £5k of that will be the VAT, which you lose the moment you buy the damn thing.  And the depreciation curve is always going to be very steep for the first 6-12 months, as it is with nearly every car.

Yeah v true, appreciate in the course of time when a few more payments have been made the books will start to balance better; still think its a poor show that its worth less than my one year old Blackline was trade just a few months ago, that car also being 3k less expensive. In fairness though they offered me a little more for it than book but not enough to justify doing anything about it.

I suppose it could be argued that the Blackline is more desirable and in more demand as a used car, happy in the knowledge though having run a Mk3 for a while that the Mk2 definitely was not as competent. Just as well I dont hate it!

Certainly people who buy very highly spec'd Elegance/vRS/L&K models at high 20k's and beyond will do their nuts on them and better be in it for the longer term.

Edited 21 May, 201412 yr by pipsyp

Do you mean a late 2013. What you have to remember is the price has to be far enough way from the new car price, or they would never sell the second hand cars.

Do you mean a late 2013. What you have to remember is the price has to be far enough way from the new car price, or they would never sell the second hand cars.

No my cars a Feb 2014 registered car, meant late 63 plate.

Could have had a 14 plate but would have meant waiting 3 weeks + for the car and didnt see the point, that might affect the residual by a few hundred notes but nothing in the grand scheme of things.

Pretty well versed with PCP's as have had a few now but to lose nearly 30% of its value in 4 months is pretty woeful IMHO. I'd bet it'd probably go up for sale on a dealer forecourt for £19.5/20k too at that age, mileage and trim level, a 4 month old car in as new condition with hardly any miles for £3k+ below list and no waiting time would be of interest for many people in the market for one of these id expect. Selling it for £16k id be being robbed.

Edited 21 May, 201412 yr by pipsyp

Admittedly though I do appreciate 4 months into a PCP is not a good time to move it on and expected to be in a poor equity position, just no quite so poor as it is.

Actually in no way desperate to sell it, change in circumstances means lots more business miles in due course and a move at some point from own car back to company car being considered. Valuation was just an exercise, and was a little curious at how well it was holding up residually.

As above 20% immediate loss due to the VAT the second you drive off the forecourt.

 

Trade is always lower than retail.

 

Buy new and keep for years or buy less than 1 year old is my thinking for value.

Weird as I have been offered similar money for mine and it is an April 2013 CR150 Elegance Hatch DSG with about £4K of options on it. Dealer did say the book values were low and they would be able to retail it for a good price. This is without any overallowance, maximum discount on new car and Stand in Value for mine, I am better off that way by a few hundred quid because I am not paying as much VAT on the new car price.

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Oh, and mine had 20k on the clock.

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Feel for you Pipsyp, looks like you'll just have to take the loss or drive it a little longer.

Booked at £16k @ 4 months old with 4k miles and excellent condition.

Was expecting a fair old drop but a 7k loss in 4 months isnt v good and think future residuals for the regular Mk3's is a little questionable. My 1 year old £20k mk2 vRS with 11k miles fetched slightly more just as a reference.

Expect the vRS with the current demand outstripping supply will fair better...

 

They're still not great on a VRS.  I was offered 19K for my late December Tdi estate with 5500 miles.   I know it's by far the worst stage for depreciation but it will have devalued by almost £1000 a month.   I think that's a bit steep so it looks like I'll have it for a bit longer.

Situation isnt such a big deal, will just continue to run it and am making some allowances for potential loss in value/excess mileage care of using it alot more....was bought with the purpose of using it for work (car allowance) and said allowance does majority fund it so cant really grumble.

Was just taken aback at how a 23k 4 month old car had haemeoraged so much doe in a few months, pretty tragic particularly given some hype I heard that the Mk3 was likely to be a better bet than earlier octavias due to its increased popularity and value for money vs a Golf.

As others have said Dealerships after all are a business and if the see the opportunity to buy in a car for 16-17k and sell it at approx 20% margin of course they'll do so.

Edited 21 May, 201412 yr by pipsyp

If you were trading in it would be different, forget overallowances, they would stand it higher on their books. When someone walks through the door with a car only a few months into a finance deal asking to be bought of it they sense desperation and will offer a very low value. What it books at in Glasses has nothing to do with it, the dealer will work backwards from what they think they can sell it for, and leave themselves a £2k margin on the screen price.

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That's why I've stopped buying brand new cars. Makes more financial sense to buy one 6-12months old which is still as new and let someone else take the depreciation hit. I'll admit it is nice to have that new car feeling but is it worth paying thousands extra for.

General rule of thumb when I was in the trade was 30% depreciation in the first 12 mth. A good car would be worth 50% at 3 years if mint with full dealer history. A poor car would be worth about 40%. Generalisations of course, and this was the best part of 20 years ago, so things have likely changed a bit.

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General rule of thumb when I was in the trade was 30% depreciation in the first 12 mth. A good car would be worth 50% at 3 years if mint with full dealer history. A poor car would be worth about 40%. Generalisations of course, and this was the best part of 20 years ago, so things have likely changed a bit.

Not changed that much thats still broadly correct Andy

That's why I've stopped buying brand new cars. Makes more financial sense to buy one 6-12months old which is still as new and let someone else take the depreciation hit. I'll admit it is nice to have that new car feeling but is it worth paying thousands extra for.

 

It all depends on how you finance it... if you have the cash and can find the right car in the right colour with all the options you want, then yes, buying nearly new is a better idea.  However, if you're going to be taking out any sort of finance agreement these days, then the deals offered by the manufacturers, such as 0% and/or a deposit allowance (and things like free servicing), and the discounts usually available on new cars, means that it is more often than not cheaper to buy new when comparing monthly payments.  Or, at least, there's not very much in it.

It all depends on how you finance it... if you have the cash and can find the right car in the right colour with all the options you want, then yes, buying nearly new is a better idea. However, if you're going to be taking out any sort of finance agreement these days, then the deals offered by the manufacturers, such as 0% and/or a deposit allowance (and things like free servicing), and the discounts usually available on new cars, means that it is more often than not cheaper to buy new when comparing monthly payments. Or, at least, there's not very much in it.

I saw a recent article in the Metro newspaper that compared 5 manufacturers and came to the conclusion that it was cheaper to finance brand new over 3 years than finance a year old for the same period like for like, Skoda example was a Citigo

It all depends on how you finance it... if you have the cash and can find the right car in the right colour with all the options you want, then yes, buying nearly new is a better idea. However, if you're going to be taking out any sort of finance agreement these days, then the deals offered by the manufacturers, such as 0% and/or a deposit allowance (and things like free servicing), and the discounts usually available on new cars, means that it is more often than not cheaper to buy new when comparing monthly payments. Or, at least, there's not very much in it.

Agree if there are special finance deals like 0% then yeah it could be cheaper. I bought my mk2 fl vrs which was just over a year old and about 8k cheaper than buying brand new. There was no finance deals on new cars or vat free offers at the time and I got the spec I wanted. I also got a service package at a reduced price as I took finance through skoda. I tend to keep mine for a years and end up owning it out right before selling.

That's why I've stopped buying brand new cars. Makes more financial sense to buy one 6-12months old which is still as new and let someone else take the depreciation hit. I'll admit it is nice to have that new car feeling but is it worth paying thousands extra for.

in theory yes, but there are some pretty spectacular new car deals out there if you get the timing right. I had been looking for a low mileage used BMW - until I found out that I could buy a new one to very close to the money asked for a used one - 20% discount and five years free servicing, specified exactly as I wanted it. And that was from a franchised dealer, not a broker.

If you were trading in it would be different, forget overallowances, they would stand it higher on their books. When someone walks through the door with a car only a few months into a finance deal asking to be bought of it they sense desperation and will offer a very low value. What it books at in Glasses has nothing to do with it, the dealer will work backwards from what they think they can sell it for, and leave themselves a £2k margin on the screen price.

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Dont doubt for a minute they'd offer me more part ex, Ive alluded to that already as they'd be able to swallow a better part ex in the smaller margin they have to play with on the new car.

Given I have little doubt the car would go up for sale around 20.5 - 20,995 given what other similar age, spec and mileage cars are going for, thats considerably more than a 2k margin. Its also not like the car needs loads of prep, a checkover and valet and it'd be straight on the forecourt.

Only makes financial sense to keep it in any case (as I knew it would, was really an exercise as was interested in its current value) but if I were seriously looking to sell it I wouldnt take anything less than 18k for it trade.

I meant they have deliberately offered low as they sense a steal, not that they would bump up the price offered with margin out of a new one. You are right, they are being very greedy with that much margin!

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It does look a bit like octy 3 new prices have gone up from the 2 but that used or part ex price has moved very much less.

 

I am interested to know what vrs part ex prices are like. The long wait has been exploited by Skoda with 2 price rises this year, some knock on to used prices feels right but.....

General rule of thumb when I was in the trade was 30% depreciation in the first 12 mth. A good car would be worth 50% at 3 years if mint with full dealer history. A poor car would be worth about 40%. Generalisations of course, and this was the best part of 20 years ago, so things have likely changed a bit.

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Unless you had a 3.2 litre Vauxhall Vectra.

 

When they were still in production I saw a mint 1 year old 3.2 litre GSI model with 8k on the clock going for £12K, that's 50% of the original purchase price!

Don't forget that comparing residual values against list price gives an inflated depreciation value, especially in yr 1, take my car which was £24k incl options, but I only paid £21k so you would need to offset the initial discount to get the true drop in value. Based on 22k miles per year, I am working on 3 yr break even point, to clear finance which was taken over 5 years. If I keep the car for 4 years, my man maths calculate approx £3-4k of equity, thats based on my previous 4 yr old Superb retailing with 88k at over £10k, lease company wanted me to pay £8.8k, and it was a similar list value to my Octy, so basing trade in value at 4 yrs on approx £8k, but anything over £4.5k will mean I have equity towards deposit which is better than company car where you get nothing back. Opt out allowance, saving on tax plus mileage allowance relief more than funds loan, insurance, servicing and tyres, so fingers crossed, on to a winner! Do the man maths!