i understand the depreciation of rep cars like the mondeo, vectra, 407....etc so why do certain cars drop like a tone of bricks when they get out of the showroom such as the new citroen c6, and the 607, any japanese brand...i dont understand how some cars can hold their value so well....ie skoda's vw's etc...so what makes a certain car keep its value....and the others not?

The way I see it is this:

Mondeo and the like are bought in huge numbers by fleet buyers, that makes them depreciate more. Other less 'fashionable ' models such as C6 etc dont sell in enough numbers to be popular and dealers are nervous about selling on the second hand market

Cos who wants to buy a French car that'll just break? No-one, so no-one will buy them except idiots from new, realise their mistake and then try to sell it and no-one wants it!

I think you'll find that at most car auctions, the japcrap actually holds more value than other types,

eg a 1.4 civic is worth more (like for like) than a 1.4 VW golf

A lot of it is badge snobbery though.

In the case of Skoda's I think that the lack of depreciation (certainly in octavia and superbs) up here is linked to every cabby using them- means they get exposed to the maximum number of customers, meaning more folks may think of them as viable wheels for themselves.

A number of factors really. Primarily it is percieved brand value. So BMW, Merc Porsche products for example, have excellent brand value and therefore are more desirable as secondhand buys. Proof that it is not anything to do with quality is than Mercedes Benz is still considered a good brand. It really is a fashion thing.

Then there is availablity. If the market has a low number of a desirable car arriving used, then the values used will be high. As more arrive on the used market, the value drops. Note the residuals of used Fabia vRS over the last two years. Mini will go the same way very soon.

Then there is the car itself. Is it any good or merely mediocre? Gooduns hold value better.

Lastly buyers confidence. We all know that French cars have a bad reputation for reliability (although this is not always founded as the old shape Clio was rated very highly in its last two years of manufacture), so people want to pay less to allow for reapir cost later. Look at the C6. If you want to cover lots of miles quietly and comfortably, I doubt anything near its price can get near it. Also a good proposition for those who want to be seen not to run with the herd. But imagine the repair bills if it goes wrong outside of warranty:eek:

Chris

Cos who wants to buy a French car that'll just break? No-one, so no-one will buy them except idiots from new, realise their mistake and then try to sell it and no-one wants it!

Sounds rather familiar that one (ex Renault owner)

I've had several French cars, and although they did eventually break, it was always the same kind of stuff that went wrong, namely electrical gear, mostly switches.

I'd avoid the more modern ones like the plague though as they're far less reliable.

That said if you want a new car and are going to mod it, saxos and the likes are not a bad starting point (I know the end result may not be to everyones taste ). Kinda greatful in a way that by the way the second hand prices work, certain cars are fairly protected from that particular type of road user

supply and demand mostly, then as others have said some are considered crap whilst really are crap so they tend to be cheaper where as some cars are very good/rare so hold their value.

go look at the price of a 2nd hand escort cosworth and compare it to the price of a saph cossie of the same age and see the saph to be about 1/3 of the price or less when really they are pretty much the same car under the skin.

madness i tell thee :confused:

A cars starting price comes into play here too. I looked at an SL55 today which had lost 40k and done 2k miles. That's one helluva cost per mile! At 60 grand, it makes sense. Likewise the M6 loses 15-20k the minute you buy it, simply because the M5 is the same car practically, with four doors and 20k cheaper. Mind you, Our Honda Jazz has lost only 1500 quid in one year and 12k miles.

Another factor will be discounts. Fleet buyers pay less than private sales but your private sale is only worth the value of a car released from a hire/lease/company fleet. This adds to the problems of there being too much availability of mondeos, vectras etc on the used market.

Also, look at someone like citroen. If you pay sticker price, you're daft. If you can get a big discount, this'll offset some of that depreciation.

pure and simple its market forces....

people are prepared to pay more for a vw/audi/merc/bmw/lexus than they are for a nissan/renault/ford etc

its really barmy sometimes.. just dealt a bloke with an 8000m s60 2.5t - really nice car - mint, handles ok looks nice on an 04.. equiv bmw or merc 14-15k trade... volvo 9.5k. cost (list) 26k new.. ouchio. he prob paid 20-21 for it.. but even so...

depreciation is irrational.. superb is a better car than either fabia or octavia... let loses a lot more.

spec has far more impact than many think.

manual large saloon = no no no

yellow / white / green / beige / flat red = no no no

no ac = big no no no

modified = no no no no no no no unless is factory approved alpina/brabus etc

aftermarket ice = no added value

ac / factory nav / factory wheels / leather = yes yes yes

examples - nobody wants an X5 if it was petrol and no comms pack but make it diesel auto and nav.. and hey presto it holds its money.

the moral is think about what you are buying in the long term not just the short.

you may well find the black vRS Fabia with factory leather is cheaper to run over 3 yrs than the £1500 quid discounted "jewish racing gold"/ "old git racing green" 2.0 est Fabia that is on paper much cheaper to buy upfront.

It is barmy you're right. I drive perfectly serviceable 11yr old merc. Cost to me 2 grand. Cost new....41 grand!!

But this prestige malarky is a misnomer now too. More 3 series BMs are sold per year than Mondeos.

But this prestige malarky is a misnomer now too. More 3 series BMs are sold per year than Mondeos.

but I know which one I would drive and which one I would not even consider sitting in

I agree totally with the Redbaron on this one

The moral of the story is though, if you cannot afford to suffer the loss in the depreciation of any car you buy, then you obviously shouldn't have bought it in the first place

I read something recently about grabbing a bargain and the advice when buying a UK manufactured car was to look for cars advertised in towns near their factory of origin. The theory is that the manufacturers give their staff big discounts on new cars and since most people live in the nearby towns, it ends up that there is oversupply of used cars that are 3 or 4 years old so they tend to be cheaper. Also the owners paid up to 25% less for their cars in the first place so can sell them 2nd hand for a bit less than average.

In the case of Skoda's I think that the lack of depreciation (certainly in octavia and superbs) up here is linked to every cabby using them- means they get exposed to the maximum number of customers, meaning more folks may think of them as viable wheels for themselves.

Certainly taxis and a 2 day hire for work purposes had an influence on my decision.