best VFM car

randalf72

Hi,
I'm shortly going to be in the market for a new car and I would like to tap the collective wisdom of the board.

It's obvious that if you are buying a new car then the best way to cut your costs is to buy something that you will be able to sell for the highest possible price when you get rid of it.

That's not what I'm looking for.

What I would like is a car that drops by the highest amount in the first year and is then relatively stable thereafter.

I managed this a few years ago with a one year old Seat Toledo that dropped £2k in value over two years.

Can anyone make any suggestions about card that fit the above criteria please.

TIA


Randalf

maninthestreet

There are very few, if any, cars that stop losing money after the first year of use.

randalf72

Of course no car will ever stop depreciating unless it achieves classic status.

But some cars hold onto their prices quite well one example would be Porsche's before the tax system was rejigged and others shed their value at an unbelievable rate. Older Fiats would be a good example of that.

randalf

LandyAndy

So you want to buy a one year old car that has suffered as large a part of its depreciation as possible?

Large Citroens, Renaults, Peugeots spring to mind.

Also larger cars from 'cheap' makes (Hyundai, Kia etc).

I have no doubt AdrianHi will have some thoughts on this.

BenL

What car have an index for this, you need to have some models in mind though.

e.g. 1/2 value lost in 1 year

Citroën C6 Saloon 2.2 HDi 173 Auto 4dr

Year 0 Year 1 Year 2 Year 3 Year 4
£28,795 £13,981 £11,345 £9,305 £7,011

http://www.whatcar.com/car-depreciation-calculator

AdrianHi

I do have some thoughts
But those above have already covered my methods.
What car depreciation index or checking out prices or parkers.co.uk (not very accurate but acceptable for depreciation estimates) and you can hunt down those cars that loose a lot up front and less later on.
So the 6 to 12 month old cars that spring to mind are those already mentioned plus Ford, Vauxhall, Mitsubishi Lancer. Avoid the more desirable like VW, BMW, Audi, Merc some Mazda's particularily the Mazda 2, Skoda Fabia are some that hold too much value early on and still loose it quite fast 1+ year old.

Have you considered leasing?
Leasing companies get big discounts on those cars that loose a lot of value early on which means a lower monthly lease price for the customer. Often cheaper than buying new and sometimes competitive with buying 6-12 months old.

cyclonebri1

randalf72 wrote: »

Hi,
I'm shortly going to be in the market for a new car and I would like to tap the collective wisdom of the board.

It's obvious that if you are buying a new car then the best way to cut your costs is to buy something that you will be able to sell for the highest possible price when you get rid of it.

That's not what I'm looking for.

What I would like is a car that drops by the highest amount in the first year and is then relatively stable thereafter.

I managed this a few years ago with a one year old Seat Toledo that dropped £2k in value over two years.

Can anyone make any suggestions about card that fit the above criteria please.

TIA


Randalf

Please don't let this be taken as offensive, but why the hell are you wanting a new car if you are so concerned with residuals?

Buy 4 month or year old car and let some other mug take the hit. The position you will be coming from a year or 2 later will be soooo much stronger:money:

vikingaero

One of the best ways to turn a profit on a car or at least to get back what you have paid for it is to delve the depths of Bangernomics.

It is one of the few parts of the car market where it's possible to run a car for 6 months to a year and sell on at the same price or a couple of hundred more.

randalf72

Thanks for the advice.

I don't necessarily want a brand new car, because of all the reasons outlined above. Obviously a older car will be much cheaper and depreciate less although I can't go too far down the banger route as I need something that will be reliable for work and the car is a necessity rather than a luxury so I can't get a bike.

The trick does seem to be finding a car with horrendous depreciation in the first year, that then settles down. Buy after the first owner has taken the hit and reap the benefits of low mileage, warranty, dealer support, etc.

maninthestreet

randalf72 wrote: »

Thanks for the advice.

I don't necessarily want a brand new car, because of all the reasons outlined above. Obviously a older car will be much cheaper and depreciate less although I can't go too far down the banger route as I need something that will be reliable for work and the car is a necessity rather than a luxury so I can't get a bike.

The trick does seem to be finding a car with horrendous depreciation in the first year, that then settles down. Buy after the first owner has taken the hit and reap the benefits of low mileage, warranty, dealer support, etc.

Do as cyclonebri1 says - buy a car that is only a few months old, but has already been owned by someone else - the entire first year depreciation should be reflected in the price of the car.

cyclonebri1

maninthestreet wrote: »

Do as cyclonebri1 says - buy a car that is only a few months old, but has already been owned by someone else - the entire first year depreciation should be reflected in the price of the car.

:money:,and hopefully the 1st owner will have had those niggly waranty issues attended to, saving you the hassle.