Hi all,

I've seen quite a bit on here about the Octavia not holding it's value quite as well as expected, so a simple question....

Which is the best spec Octavia in terms of residual values? I would normally have assumed VRS but with so many being bought I have heard this has affected ongoing values.

Would the Scout hold value any better or is a more mid-range spec going to be seen as "better value" and hold up residually?

I've got an Elegance spec and will be possibly looking to change in the next 6-12 months. My current is diesel but am considering going petrol (which would rule out the Scout of course) - has anyone got any indications of whether "dieselgate" is affecting/has affected Skoda values? I've heard that VW sales are down since it came out.

Thanks.

Steve.

Residuals depend on age.

 

There is certainly a problem with the nearly new market, as it makes no sence compared to new prices with £1000 off and interest free.

If financing the used rates can mean paying £3k more interest, so would want at least 20% off an elegance (now SE-L) just to break even

 

The 10 mths to 2 years old market is fair (as bear in mind many cars in this group were sold with VAT free equivalent) so loss over the time is not exceptional, however against original full list price though it doesn't look good. 

 

The 2-3 years old (which tend to be mark 2 shape) residuals tend to be affected by ex fleet cars, there is quite a variation in quality between a high mileage worn out one and a low mileage looked after one.  End of contracts tend to see cars dumped on the market which affects residuals.  

 

4 year old ones are not much cheaper than the glut of 3 year old ones

 

By year 5 the residuals are going to be less than third of start price,   Going to be more affected by alternatives on the market than a percentage formula

 

 

The middle SE spec is common, elegance is rarer so should hold residuals better, the VRs even more, but a lot will depend on options that improve kerb appeal to the buyer, the problem is these extras don't usually add to value, as the options tend to fall to zero value over 3-4 years.    If your elegance has things like leather upholstery it will make it worth more than the common cars.

Edited 10 December, 201510 yr by SurreyJohn

Its all a load of nonsense in my humble opinion.

 

You don't buy cars to appreciate generally, only enjoy.

I got my 14 plate (13) well cheap due to a few miles, its the new shape so ticks all the newness boxes for me but I wouldn't pay £25k new, but thats just me (some would).

 

Do I care (or care opion of others think who aren't enjoying the car like me) how much I/they think it will be worth in X years time ?

No.

 

If you want new, buy new. Don't then complain about the fact new cars lose money. They all do that, with almost no exception (except v.rare supercars on a waiting list!).

Buy to enjoy, accept they will always lose loads of money, or move on from the idea and just keep an older barge on the road instead (but without all the latest toys)

The Scout will hold it's value better than anything else.

 

Its all a load of nonsense in my humble opinion.

 

You don't buy cars to appreciate generally, only enjoy.

I got my 14 plate (13) well cheap due to a few miles, its the new shape so ticks all the newness boxes for me but I wouldn't pay £25k new, but thats just me (some would).

 

Do I care (or care opion of others think who aren't enjoying the car like me) how much I/they think it will be worth in X years time ?

No.

 

If you want new, buy new. Don't then complain about the fact new cars lose money. They all do that, with almost no exception (except v.rare supercars on a waiting list!).

Buy to enjoy, accept they will always lose loads of money, or move on from the idea and just keep an older barge on the road instead (but without all the latest toys)

 

This is generally my thought on the matter too, I was just putting the question out there as my current car is my first ever brand new motor (on PCP) and over the years I've heard various scare stories about values come trade in time (be it part way through or at the end of the agreement).

SurreyJohn - I specced xenons and winter pack on the Elegance but kept it as the alcantara interior (which I'm quite fond of).

If you return or part-ex the car at the end of your PCP term, don't expect to get much more than the GFV from a dealer, irrespective of what options you've added and you won't be disappointed. 

 

If you sell privately at the end of the term, you should hope to get more than the GFV, especially with sensible upgrades like the one you've chosen.

   

This is generally my thought on the matter too, I was just putting the question out there as my current car is my first ever brand new motor (on PCP) and over the years I've heard various scare stories about values come trade in time (be it part way through or at the end of the agreement).

SurreyJohn - I specced xenons and winter pack on the Elegance but kept it as the alcantara interior (which I'm quite fond of).

 

Yeah fair enough. It was just my throw away thoughts on the whole thing about depreciation etc. I think its more important the shorter you plan to have a car for.

 

Never been a problem for me with the Skoda family of cars though, I still see my 02 plate fabia driving around my neck of the woods it was sold after trading up around 2010! Still got my Fabia 2006 and wife still has her 2009.

 

They are getting close to being worthless on paper now....I'm hoping with the mkIII vRS I recently got the same said will be true too ( let me correct that, I mean I have it long enough that value no longer is relevant just keeping out of love!), certainly don't have any plans to change it any time soon ( I put careful thought into the colour after my last one was yellow lol ).

Edited 10 December, 201510 yr by vRSAnt

Buy top of the range and keep it for 10 years. Can't understand why people change their cars every 2-3 years, taking a whacking loss each time. Just work out the per annum cost. Assume that it'll be valueless after 10 years and you may be pleasantly surprised ...

Thanks for all the replies.  I'm a year into my pcp so 30 months left to the end, my comment on change in 6-12 months was obviously depending on the inevitable call from the salesman "enquiring" if I'd be interested in changing.

 

Having thought more on this, I've come to the conclusion my current car does literally have everything I need so unless it's a fantastic deal I'll most likely see out the pcp and hopefully get together enough money to buy it outright at the end or have enough of a deposit separate from the car's trade in value to get an SEL or L&K.

 

At this point I'd like to chuck in a disclaimer on the above statement when I inevitably go against my thoughts next year some time lol.

If it helps......

Bought my 2.0 150 TDI Elegance estate brand new Feb 14 (so not yet 2). Paid circa 23k for it on 0% PCP....from memory put down £500ish deposit (as little point putting in a big deposit just to bring down the payments).

Best case value today £12.5k......I still owe (including baloon) £16.5k......so to get out of it I'll need 4k or a v strong discount on something else...that id end up having to pay right money for. Its been that kind of deficit since I bought it.

Thats a real world example.....if you like the car and are either prepared to run it right to the end of term or have the cash to buy it out of the contract fair shout.....otherwise you'll find yourself in a big pool of Neg Equity for the time you have it.

GFV on mine at 42 months old is £10.3k....if its barely worth £12.5k at less than 24 months old then that GFV is a load of balls isnt it.....has just served to make the finance affordable and isnt a real world used value for the car.

I dont really care...just going to run it now until the end of term and hand it back but it isnt so great being so locked into something....£4k is alot of money in my book....I havent got a problem with some neg equity but £4k is pretty bad.

Edited 11 December, 201510 yr by pipsypreturns

The smaller the deposit you put down on a brand new PCP, the bigger the negative equity margin will be and the longer it will last... but, as you say, there's not much point in putting down a big deposit unless you plan to keep the car at the end. Unless you can get a whacking great big deposit contribution, 10-15% is probably the sweet spot.

If it helps......

Bought my 2.0 150 TDI Elegance estate brand new Feb 14 (so not yet 2). Paid circa 23k for it on 0% PCP....from memory put down £500ish deposit (as little point putting in a big deposit just to bring down the payments).

Best case value today £12.5k......I still owe (including baloon) £16.5k......so to get out of it I'll need 4k or a v strong discount on something else...that id end up having to pay right money for. Its been that kind of deficit since I bought it.

Thats a real world example.....if you like the car and are either prepared to run it right to the end of term or have the cash to buy it out of the contract fair shout.....otherwise you'll find yourself in a big pool of Neg Equity for the time you have it.

GFV on mine at 42 months old is £10.3k....if its barely worth £12.5k at less than 24 months old then that GFV is a load of balls isnt it.....has just served to make the finance affordable and isnt a real world used value for the car.

I dont really care...just going to run it now until the end of term and hand it back but it isnt so great being so locked into something....£4k is alot of money in my book....I havent got a problem with some neg equity but £4k is pretty bad.

How many miles has it done and is it manual or DSG?

I think the value you have been given is rock bottom trade price. Have you shopped around a bit?

Also the Elegance or SE L is always going to suffer, as demand is for VRS models and at the price you paid you could have had a VRS.

Putting in £500 deposit is always going to give you some negative equity.

But as you say just keep it and hand it back.

How many miles has it done and is it manual or DSG?

I think the value you have been given is rock bottom trade price. Have you shopped around a bit?

Also the Elegance or SE L is always going to suffer, as demand is for VRS models and at the price you paid you could have had a VRS.

Putting in £500 deposit is always going to give you some negative equity.

But as you say just keep it and hand it back.

I think Skoda are going to have a problem on their hands in a couple of years time when all these 3 year PCP deals come to an end - the GFVs seem to be rather on the optimistic side and I have a feeling there will be a lot of cars just handed back, as the book value will be lower than the GFV.

 

A better deal will be had by handing back and purchasing again with no p/ex and getting maximum discount off of the list price, rather than that margin being used to inflate the p/ex price to clear the GFV and paying list price for the car.

 

I am not sure the vRS's will hold up well either, Skoda have sold a lot more of them than they expected due to the affordable monthly payments, demand outstripped supply for some time, these will all be hitting the used car market at around the same time and there are only so many used car buyers out there ..........

 

I am not sure the vRS's will hold up well either, Skoda have sold a lot more of them than they expected due to the affordable monthly payments, demand outstripped supply for some time, these will all be hitting the used car market at around the same time and there are only so many used car buyers out there ..........

 

You may be bang on about the vRS's.  I bought mine with the assumption that the deposit I put in (nearly a couple of grand) I would get back (most not all).  I have spoken to a number of dealers from few different brands including Skoda and they all say the same.  The residuals they are seeing in their book prices are being driven down by the whole VAG scandal and the over supply.  Now this may be just dealers trying to push the price down.   I'm looking to get out of mine now whilst I still can and move over to something that I can afford and buy out at the end so I can keep it running a good few years and not have to worry about PCP residuals for a while.

I had been thinking of swapping mine before the VAG scandal broke and with approx 58k on the clock it was booking just over £10k 3 months ago, now it's booking less than £8.5k with 65k on the clock so I reckon at least £1k of the drop is due to VAGgate!

Yep, and despite having the value of our cars trashed, we won't be offered any compensation because we don't have the affected engines.

The advantage of PCP with a low deposit - hand it back at the end and it is VWFS 's problem

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The amount you paid as a deposit is irrelevant as you'll still pay the same over the term, and it does still affect us as there's naff all chance of any equity to roll onto the next car.

I think Skoda are going to have a problem on their hands in a couple of years time when all these 3 year PCP deals come to an end - the GFVs seem to be rather on the optimistic side and I have a feeling there will be a lot of cars just handed back, as the book value will be lower than the GFV.

A better deal will be had by handing back and purchasing again with no p/ex and getting maximum discount off of the list price, rather than that margin being used to inflate the p/ex price to clear the GFV and paying list price for the car.

I am not sure the vRS's will hold up well either, Skoda have sold a lot more of them than they expected due to the affordable monthly payments, demand outstripped supply for some time, these will all be hitting the used car market at around the same time and there are only so many used car buyers out there ..........

Couldnt agree more Andy...I think the O3 has rather been a victim of its own success...and perhaps also in part due to not 100% thought out finance packages.

Edited 12 December, 201510 yr by pipsypreturns

How many miles has it done and is it manual or DSG?

I think the value you have been given is rock bottom trade price. Have you shopped around a bit?

Also the Elegance or SE L is always going to suffer, as demand is for VRS models and at the price you paid you could have had a VRS.

Putting in £500 deposit is always going to give you some negative equity.

But as you say just keep it and hand it back.

29k and its a manual...that'll only contribute to a few hundred £ difference trade...no major shakes when the manual was that much cheaper in the first place. I dont personally like DSG with TDI motors either..its a personal thing.

My brother works in the trade and has alot of main dealer contacts, best he could get for me a few weeks ago was 13k. Cars v similar to mine are being sold approved used for £14.5k...so rather says it all really...used prices being squeezed so dealers can retain a healthy margin on the sale.

Deal worked for me as I got a v good part ex on my previous car (which I honestly dont think id have gotten elsewhere)...and the deal was on 0% and made it v affordable....was really about monthly outlay at the time. Was my local dealer to so there was an element of convenience about it...but I know now I should have shopped around and driven a harder bargain.

Undoubtedly Ill keep it until hand back time....I might VT it just before if I can be dealing with the hassle...but if I buy new again I'll decide exactly what I want and will get the best deal possible from a broker...maybe PCH'ing something instead if the right car and deal comes up.

News Flash!!

WBAC offer of £7,730, that is a £2,500 drop in 3 months, ouch!!!!

That's also over £1k less than my Superb 2 was offered to me by the lease company at 4 yr old with 88k on the clock! The original list price of the S2 in 2009 was less than the list on my 2013 O3!

Let just say, it looks like I'll be running the O3 into the ground.

Does anyone know when the cam belt needs changing on the 150CR?

The amount you paid as a deposit is irrelevant as you'll still pay the same over the term, and it does still affect us as there's naff all chance of any equity to roll onto the next car.

Sorry, I disagree, most people buy on PCP to hit a certain monthly payment. If they have put down £3k in order to make the monthly payment affordable then that is £3k they won't see again come trade in time.

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WBAC are offering very low on VAG diesels at the moment .......

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WBAC are offering very low on VAG diesels at the moment .......

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They sure are! In the same period, SWMBOs low mileage 2009 O2 1.8TSI has only dropped £400. It's 6.5 yrs old and still booking at £4,800.

Edited 12 December, 201510 yr by Matt Pez

I've already decided to run mine on for a good few years - I plan to retire in around 4 years time and I don't plan to change my Octavia before then as it is used purely as a commuting car - by which time it will have done around 130k miles.