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Jay Beach

Depreciation in 12 months.

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Hi All, 

 

Been looking at changing my car and am really surprised about how much my car has dropped in value since I bought it a year ago. I paid circa £33k and BMW have offered me £22K trade in value. Was expecting to lose money but £11k in 12 months is crazy. 

 

Looks like I will be keeping the car long term (I do love it, is just a bit slow.) 

 

G31 520D, Black Sapphire, Black alloys, Tech Pack/Comfort Pack, Panoramic Sunroof, ceramic controls, heated front/rear seats and only 13k miles. List price £51k now worth £22k. 

 

 

B9634CE1-2667-421D-B9D2-BC49452D4FE5.jpeg

Edited by Jay Beach
Added text

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Unfortunately it doesn't surprised me, and at least it's helped you decide to keep it. Don't worry about the speed, it doesn't make the least bit of difference other than meaning that you visit the petrol station more often.

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All over the used car site are examples of high end vehicles having lost over half their original RRP, within a year.

 

When you think about it, your car has actually lost £29k over the original RRP which is another example of chronic depreciation. I have never purchased a used BMW before, but, I am looking now as there are some earth shattering depreciation going on out there, and I don't want it to be me that falls foul of it.

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That’s the state of the economy. The F10/F11 cars depreciated less quickly than the G3x cars. Then factor in the £450 road tax for the 2nd to 6th renewal on cars over £40k and the mess that is Brexit screwing us and this is what we’re left with. My car depreciated by half in its first year and yet again by around 18% in the 2nd. I’m happy though as I’ll be keeping the car longer term. 

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That’s very very surprising. Mine is a June 2017 520d, viability pack, m sport plus pack, folding mirrors, auto boot. Alpine white with blue interior. 

 

26k miles and I’ve just been offered £26,200 as trade in - clearly got a bit of a smashing deal on that.

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It’s really the trade-up cost that matters of course. A dealer is most likely to sweeten a trade if you’re trading up a lot than a little.

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36 minutes ago, Boba said:

It’s really the trade-up cost that matters of course. A dealer is most likely to sweeten a trade if you’re trading up a lot than a little.

 

Up to X5. Pretty sure I’d get the deal trading in to something different tbh

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Not surprised about price drop. Buying this sort of car unless for long term is always about the risks of what return I’ll get on a trade in. Attractive leases means the market is flooded thus reducing the values further. The £450 road tax is a joke! So your ultra efficient 530e is taxed higher than a V8 Mustang just because tw&t called Osbourne was given a job in Government before starting a cushy job with a newspaper. 

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It's also a bit of a game too if you're doing a trade in and leasing - which bits of the deal have scope for manouevre for them. Remember anything they buy is now a liability on their books till they sell it, plus there is the cashflow too.

It's why I PCP - you're effectively only financing the depreciation anyway.

 

So my trade in was only little more but then I got a very healthy discount on the new car, and then a reduction on the PCP. Could someone else have done better? Absolutely. Did I achieve and exceed and my ingoing target? Absolutely, so I'm happy.

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@Jay Beach if all you’re bothered about is a bit more oomph, then consider a tuning box or remap? You get very healthy gains on the 20d engine from either.

 

Of course there’s warranty & insurance to think about, the latter being only an admin fee when I had a tuning box on my last car. 

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i'm going 2nd hand to take out the depreciation factor. looking for advice on buying a 3-4yr old 520d or 530d Touring in Lux  trim. Any advice? budget @ 15K and ill be doing 30K miles p/a...

 

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1 hour ago, russmc22 said:

i'm going 2nd hand to take out the depreciation factor. looking for advice on buying a 3-4yr old 520d or 530d Touring in Lux  trim. Any advice? budget @ 15K and ill be doing 30K miles p/a...

 

 

Yup, because a second hand car does not depreciate at all right?

 

when will people learn that buying new is often cheaper than buying used - especially on finance. If you are a savvy negotiator, you take away the first 12/18 months of depreciation through a discount on your deal, you then pay month by month for the rest of the term.

 

when buying used, you buy at the price set not at the price you are willing to to pay

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Yup, because a second hand car does not depreciate at all right?

 

when will people learn that buying new is often cheaper than buying used - especially on finance. If you are a savvy negotiator, you take away the first 12/18 months of depreciation through a discount on your deal, you then pay month by month for the rest of the term.

 

when buying used, you buy at the price set not at the price you are willing to to pay

No but a pre owned car depreciates at a lower rate than a new one. Taking the OP, his car was listed at £51k he secured an £18k discount and yet it still lost £11k. Assuming the dealer who has offered £22k sells it to the next buyer for £25k it's unlikely it will lose £11k in the next year

 

Sent from my SM-T800 using Tapatalk

 

 

 

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People buy in a way that's best for them.

 

Our F11 2010 built was purchased at 3 years old with only 18000 miles on the clock. It had lost almost 50% of it's purchase price when we bought in Nov 2013. Car now has 72k miles and  is worth around £7500. So that's around £11500 depreciation in almost six years or just under £2000 a year. I cannot afford to lose the same amount in only 12 months!

Edited by E39mad
Car cost us £18k - man maths moment

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On 16/09/2019 at 20:49, sjak92 said:

 

Yup, because a second hand car does not depreciate at all right?

 

when will people learn that buying new is often cheaper than buying used - especially on finance. If you are a savvy negotiator, you take away the first 12/18 months of depreciation through a discount on your deal, you then pay month by month for the rest of the term.

 

when buying used, you buy at the price set not at the price you are willing to to pay

 

^^^ This.

 

Dealers will often work to near zero margin on new cars, as they have targets set for the manufacturers where they’re paid a large bonus for hitting volumes. They will discount heavily and offer better finance rates than used. Sometimes people will take out finance on a brand new car to get the discounts, pick up the car and just pay it off! 

 

Used is only really the best option for cash buyers in my opinion, and your chances of getting big discounts from the window price, as dealers will make their biggest cash margin in used sales. 

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2 hours ago, Taxboy said:

No but a pre owned car depreciates at a lower rate than a new one. Taking the OP, his car was listed at £51k he secured an £18k discount and yet it still lost £11k. Assuming the dealer who has offered £22k sells it to the next buyer for £25k it's unlikely it will lose £11k in the next year

 

Sent from my SM-T800 using Tapatalk

 

 

 

Hi, I bought the car as an approved used (14 months old at £33k) figuring it had taken a big hit on depreciation already. The £11k depreciation is from when I purchased the car to 12 months down the line. Cheers Jay

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Having looked at this again. That's painful. I did a quick search for a 2 year lease on a 520d MSport which is £457 per month Inc VAT on 2 years at 12,500 miles with an initial rental of 1 month. It won't be quite as well specced as yours.

BTW should the list price have been £41k rather than £51k

Sent from my moto g(7) plus using Tapatalk

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4 hours ago, Taxboy said:

Having looked at this again. That's painful. I did a quick search for a 2 year lease on a 520d MSport which is £457 per month Inc VAT on 2 years at 12,500 miles with an initial rental of 1 month. It won't be quite as well specced as yours.

BTW should the list price have been £41k rather than £51k

Sent from my moto g(7) plus using Tapatalk
 

 

It was £51,530 at the time.F9C159E8-6CC4-479E-B91B-85D4E44CD6FD.thumb.png.edca24547138237c523601e7277c90fa.png

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20 hours ago, E39mad said:

People buy in a way that's best for them.

 

Our F11 2010 built was purchased at 3 years old with only 18000 miles on the clock. It had lost almost 50% of it's purchase price when we bought in Nov 2013. Car now has 72k miles and  is worth around £7500. So that's around £11500 depreciation in almost six years or just under £2000 a year. I cannot afford to lose the same amount in only 12 months!

 

Your F11 was only ~36k new? Also, how did you manage to get a 3 year old F11 for 18k if you don't mind me asking? That's amazing!

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Thanks for that. I can now understand why. You obviously have a very well specced car . Unfortunately when you trade back most dealers treat the options as having little or no value (it's usually a different story when you are buying) I know this doesn't much help with the shock of your car's valuation.
However as you've got a decent car hopefully it's not too much of a hardship to continue living with it
I might suggest if you are someone who likes to change cars regularly, then leasing might work out as a cheaper option for you





Sent from my moto g(7) plus using Tapatalk

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3 hours ago, GruntBoy said:

 

Your F11 was only ~36k new? Also, how did you manage to get a 3 year old F11 for 18k if you don't mind me asking? That's amazing!

 

It was my fathers car and that was the trade in value he was given against his next car. So have known the car since new and went with my father to collect it back in Dec 2010.

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2 hours ago, E39mad said:

 

It was my fathers car and that was the trade in value he was given against his next car. So have known the car since new and went with my father to collect it back in Dec 2010.

 

That does not count, may as well call yourself we buy any car

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