Poor XC90 residuals

[eternal optimist]

Originally Posted by Philip Fisher

It is a commonly held opinion that petrol and diesel cars will depreciate more heavily as we approach the ban on their sale in 2030. I can understand the logic, however I am inclined to believe the opposite.

The ban in 2030 is a ban on sale, not a ban on use. So as we pass 2030 and supply of conventional fuelled cars dries up, then I believe that the good used examples with actually be more sought after. This will have the effect of supporting residuals.

This will be especially notable if the electric (or hybrid) alternatives available new are still compromised in terms of charging infrastructure/range/purchase price/maintenance cost etc....

I’m inclined to agree.

[S60Chris]

Originally Posted by eternal optimist

I’m inclined to agree.

Username checks out

[Discoman]

Originally Posted by Philip Fisher

It is a commonly held opinion that petrol and diesel cars will depreciate more heavily as we approach the ban on their sale in 2030. I can understand the logic, however I am inclined to believe the opposite.

The ban in 2030 is a ban on sale, not a ban on use. So as we pass 2030 and supply of conventional fuelled cars dries up, then I believe that the good used examples with actually be more sought after. This will have the effect of supporting residuals.

This will be especially notable if the electric (or hybrid) alternatives available new are still compromised in terms of charging infrastructure/range/purchase price/maintenance cost etc....

People always want what they can't have. I am looking at changing my weekend use Italian V8 for a British V12, neither are still in production and both are hugely attractive IMHO largely as they are worth a small amount of list price now, think new mid priced Volvo. Will they be worth more post 2030? Possibly but spare parts will be an issue as will bans on entering cities and towns for anything with an exhaust.

[Quacker]

Originally Posted by Discoman

People always want what they can't have. I am looking at changing my weekend use Italian V8 for a British V12, neither are still in production and both are hugely attractive IMHO largely as they are worth a small amount of list price now, think new mid priced Volvo. Will they be worth more post 2030? Possibly but spare parts will be an issue as will bans on entering cities and towns for anything with an exhaust.

I doubt whether there will be such a ban as fewer and fewer ic cars will remain on the roads. As long as they meet Euro6, they are very clean and ic engines could still be in production for the UK hybrid market until 2035. Euro6 engines will be up to 20 years old by then anyway and being scrapped in large numbers.

[vxf]

Originally Posted by apnicolle

Didn’t the saying use to be that Porsche were a bank that just happened to also make cars? I may be mis-remembering.

I teach that case study to my MBA students. It's because of Porsche's tendency to speculate on currency markets - and because of the short squeeze on Volkswagen short sellers in 2008. Not because of financing. But the point stands... there is more money in Finance

[Discoman]

Originally Posted by vxf

I teach that case study to my MBA students. It's because of Porsche's tendency to speculate on currency markets - and because of the short squeeze on Volkswagen short sellers in 2008. Not because of financing. But the point stands... there is more money in Finance

Interesting that Porsche GB made customers ordering new cars sign an indemnity to pay the 10% tariff if it applies at time of import but they have made far more than this on UK sales since the Brexit vote in 2016 due to massive weakness in sterling.

Taking us in the curved ball that is Brexit should there be no deal then it will interesting to see how many UK produced cars get sold in the UK on the back of this as import substitution choices....and, of course, the new XC90 is to be built in the US so would not attract a tariff on import to the UK I presume?

[V8XCV]

I remember hearing in some documentary somewhere that VW only build cars to have something to sell on finance, as its their finance division that actually makes money.

[Beavis]

V90's also rock bottom. I've seen 18 month old 68 plate cars like mine on autotrader from deals with 20-30k miles for less than £18k. List prices on these was c.£39-40k.
They were c.£25/26k back in the summer when i last looked.

[eternal optimist]

Originally Posted by Beavis

V90's also rock bottom. I've seen 18 month old 68 plate cars like mine on autotrader from deals with 20-30k miles for less than £18k. List prices on these was c.£39-40k.
They were c.£25/26k back in the summer when i last looked.

I’m starting to get tempted. When I find a D4 Momentum V90 with c 25k miles, right colour (brown) with the amber interior, a Towbar, and 18 months of warranty left for £18k I might have run out of reasons not to buy!

[Beavis]

Originally Posted by eternal optimist

I’m starting to get tempted. When I find a D4 Momentum V90 with c 25k miles, right colour (brown) with the amber interior, a Towbar, and 18 months of warranty left for £18k I might have run out of reasons not to buy!

i'm amazed they have dropped so low. but mind you when i was looking at 1-2 year old 5 series estates last night they were also lower than i had expected too, and the wifes 2 year old v40 which we've just got rid of is up for c.£11k.
Seems like the second hand market has dropped massively.