Depreciation black hole

[wimorrison]

Originally Posted by Mr Angry

...
In all it seems to come down to the fact that the XC60 is overpriced in the first place and the dealers have too much to play with, hence they give it all away, which erodes the used values.
...

This is interesting as I always was of the opinion that the 2nd hand values were based against the original book price, not the sale price as the sale price varies from dealer to dealer, and it is also dependant upon individual negotiating skills

I don't disagree that the they are probably overpriced, but you do get one hell of a lot for your money!! (I also compared Audi and BMW - no comparison for the price, least that was my view!)

[mas66]

Originally Posted by Mr Angry

Hi Guys,

Just about to swop my 2007 XC90 SE LUX D5 Geartronic with Sat Nav & Comms Pack, Inscription silver. Discounted cost new at the time was £38,000 (£4000 off). I have done 30,000 miles. Bare trade value for the XC90 against a new xc60 R Design Premium 2WD is £18000. Although this is boosted by an additional £2350 trade in bonus, which apparently the dealer says you don't get without a trade-in, plus 8% discount off the new car before vat on list price.

Adding all the incentives together makes it look like I'm getting about 24k for my car. Leaving just £8800 t change in my case.

But why all the confusion. I am a bit sceptial about the £2350 p/ex incentive as I am wondering if one get get this as extra discount without a trade-in.
All sounds good but I made a compassion with buying a new Audi Q5, same spec etc, except no City Safety and the deal was £1000 less and the Q5 s a 4x4.

In all it seems to come down to the fact that the XC60 is overpriced in the first place and the dealers have too much to play with, hence they give it all away, which erodes the used values.

I still prefer the Volvo over the Q5 however as the ride and comfort is far better.

As I understand it the £2350 is a Volvo incentive rather than what the dealer is giving you, I also think its to somewhat counter the scrappage scheme for those of us that dont qualify for it ....... if you havnt yet ordered I would also aim for a tiny bit more than 8% !! ..... and dont forget the £750 finance input (or low interest )

Cheers

Mark

[Daleman]

Originally Posted by mas66

As I understand it the £2350 is a Volvo incentive rather than what the dealer is giving you, I also think its to somewhat counter the scrappage scheme for those of us that dont qualify for it ....... if you havnt yet ordered I would also aim for a tiny bit more than 8% !! ..... and dont forget the £750 finance input (or low interest )

Cheers

Mark

All a bit confusing as you talk about pushing for slightly more than 8% then mention there is £2350 Volvo incentive on top .Then in another string you talk about at least 15% then £2000 scrappage on top.

I thought I had the makings of reasonable deal but on some of your mentioning’s it is beginning to sound poor.

On some of these new figures it is beginning to look as if the Volvos are initially well over priced but I also compared the Q5 and the Volvo seemed better value at list prices without taking into account substantial Volvo discounts.

[mas66]

Originally Posted by Daleman

All a bit confusing as you talk about pushing for slightly more than 8% then mention there is £2350 Volvo incentive on top .Then in another string you talk about at least 15% then £2000 scrappage on top.

I thought I had the makings of reasonable deal but on some of your mentioning’s it is beginning to sound poor.

On some of these new figures it is beginning to look as if the Volvos are initially well over priced but I also compared the Q5 and the Volvo seemed better value at list prices without taking into account substantial Volvo discounts.

Just to clarify .... one of my postings deals with scrappage the other non scrappage...... Scrappage seems to offer the best discount if you have an old banger that qualifies ..... as for non scrappage .... you can get whatever you can negotiate with the dealer (which, depending on the dealer could/should be more than 8%) + another £2350 from Volvo for a trade in bonus.

As for being over priced ..... there are very few cars of all makes that you cant get good deals on, so we could say they are all over priced, even the Q5 with the very long lead times can still be ordered at a discount depending on the dealer you go to

Cheers

Mark

[jeffo]

just reading all the comments.

I have just been offered a £7,500 + VAT + 11.5% discount. About £12,000 off a 2011 XC90 D5 Executive.

As for being overpriced, if we shop around there cleaerly are deals to be had on the Volvo's. And personally I prefer the XC90 to the X5 and Q7, and Lexus. I beleive that makes the BMW, Audi, and Lexus the ones that ae by far overpriced.

Now I just need to wait until June/July to get my car.

[ITServe]

Similar discount to me, ordered end of December and still waiting!

Will be delighted when it arrives though!

[anuvid]

Where ?

[Daleman]

Try Drive the Deal or UK Car Broker and I think I saw some at Motorpoint!

[john h]

There's a lot of interesting points made in this thread. To add my own nil-depreciation perspective:

I am lucky that I could afford to buy a new car if I wanted one. I did a few years back, a Saab 9-5 Aero, and I quite enjoyed the feeling of having the car 'fresh'. I got over 30% discount (dealer was desperate to hit his registration target in late December) so depreciation was not too bad after 2 years and 70,000 miles. It was nice having a new car, but not that special to me.

Actually, I prefer older things. My house is over 100 years old and although that means it needs frequent fixes and costs a lot to heat, I love the character it has and I like the feeling that people have been there before and I'm just the current custodian. For me it's the same with cars.

I also did the "car of my dreams" thing. After the Saab, I bought a Porsche 993 Carrera 4 for £30k and traded in it 18 months later for £25k. But it cost A LOT to run! It was fantastic though, and I really enjoyed it.

I have come to the conclusion now that I get more pleasure from a good quality older car. My current daily driver, a 1986 Mercedes 500SEL, cost £3250 and will stand me at about £5300 when I have all jobs done for reliable daily use, including the LPG conversion.



It does 15mpg on LPG (60p per litre) so fuel costs are on a par with a modern medium size petrol car. It will, if anything, appreciate in value if maintained correctly and it gives enormous pleasure of ownership. When it was new, this car cost the same as a decent house and everything you see, hear or touch reminds you that Mercedes set out to build the very best car they could, whatever the price turned out to be. The whole thing feels like its carved from an enormous billet of steel.

There are downsides. Of course it requires more maintenance and fixes than a modern car and for some that would be a major pain. But cars are my hobby, so I quite like having some jobs to do - it increases my 'bond' with the car. It lacks many modern gadgets of course, but the few that I consider important are there - ABS, aircon, power steering and a good, high-geared auto box. It also has more than enough power to deal with modern driving conditions.

It has no airbags, but I feel confident it would cope quite well in an accident.

The main difficulty in considering the old car route is that most cars of this age are complete sheds. Even ones that look OK can be a pile of trouble if you're not careful. So it is a very risky game for anyone who doesn't have good technical knowledge of cars.

But, for me, a carefully chosen old car is a great way to a very 'special' and enjoyable motoring experience which is also economical when all costs are considered.

Most of my friends also prefer older cars, but many work colleagues buy new cars and I agree with the views others have expressed in this thread: if you want it and can afford it, then buy it. And don't feel any need to justify it to anybody else! But I have found another approach which suits me better.

I hope people do keep buying new, high quality cars. If one of them is looked after really well, I might end up driving it in 2035... assuming I'm still going and the Merc isn't!

John

[Daleman]

Originally Posted by Mr Angry

Hi Guys,

Just about to swop my 2007 XC90 SE LUX D5 Geartronic with Sat Nav & Comms Pack, Inscription silver. Discounted cost new at the time was £38,000 (£4000 off). I have done 30,000 miles. Bare trade value for the XC90 against a new xc60 R Design Premium 2WD is £18000. Although this is boosted by an additional £2350 trade in bonus, which apparently the dealer says you don't get without a trade-in, plus 8% discount off the new car before vat on list price.

Adding all the incentives together makes it look like I'm getting about 24k for my car. Leaving just £8800 t change in my case.

But why all the confusion. I am a bit sceptial about the £2350 p/ex incentive as I am wondering if one get get this as extra discount without a trade-in.
All sounds good but I made a compassion with buying a new Audi Q5, same spec etc, except no City Safety and the deal was £1000 less and the Q5 s a 4x4.

In all it seems to come down to the fact that the XC60 is overpriced in the first place and the dealers have too much to play with, hence they give it all away, which erodes the used values.

I still prefer the Volvo over the Q5 however as the ride and comfort is far better.

Even if they are slightly overpriced with big discounts it doesn’t seem to be eroding values of XC60 much .It seems to me it’s a simple rule of the more you pay the more you pay for your depreciation.