Tim Stuart said:
Believe these figures Bowfer - in March 2002 I paid £17,995 for a 147. I went to trade it in a couple of weeks ago and it's worth £3,250. That works out to be 18% of its original value!!!
That's just one example though.
It's hardly indicative of the whole range.
Perhaps you paid too much for the car in the first place,I dunno.
Perhaps the dealer didn't want it,so offered you a derisory trade-in figure,I dunno.
Perhaps there is 'something' about your car that narrows the appeal and lessens the value.
I've seen plenty of examples of so-called 'bad depreciation' motors over the years and I stand by my belief that they only appear to depreciate badly if you pay full RRP.
Many of these cars can be had for far less than RRP,which makes the standard depreciation figures a pile of baloney.
Take one example I've found today.
My bro-in-law just bought a Vauxhall Vectra.
According to the official figures,he can expect it to depreciate by 20% a year.
So,if he paid full RRP (£17000),they reckon it will be worth £6800 in 3 years time.
However,he didn't pay £17000 for it,he paid £12500.
The depreciation figures are then thrown out the window,because using the 60% figure it would be worth £5000 in three years.
That's crap though.
It'll still be worth £6800,same as the one sold at full RRP.
So his real-life depreciation figure is ACTUALLY 46%,not 60%.
I always try and do my own depreciation figures.
It's rough,but it's served me well.
I see what I can actually get the car for,not it's full RRP.
I then look to see what 3 year old ones are going for on autotrader.
Very quick,very simple,but done me well over the years.