Depreciation black hole

[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.