Beating depreciation?

terryya

I've been mulling over an idea in my head about trying to avoid car depreciation and wondered if it is possible.

I'm not going to do too many miles and whilst I don't want it to be too expensive to run I'm not really bothered at all about what car I get. I'd also prefer it to be still in warranty to try and avoid any unforeseen repair costs or MOTs. Ideally I'd prefer it not to need a service in the time I have it, but wouldn't mind that much if it does.

With this in mind I've visited my local BCA and noted down prices of a few fleet auctions. Then looking at cheapest ad prices ( and knocking some off) and depreciation calculators I've picked a couple out that seem to sell at a low enough price and have already lost a lot of value and seem to level out over next couple of years to about £700/800 ish pa.

So the plan (if it is thorough enough to be called that) is to buy one of these run it for 6/12 months and then sell on - hopefully covering the purchase cost and then repeating. I appreciate that it isn't an exact science and aren't one of those people who think it is a piece of cake to buy cars at auction and sell on at a profit or anything like that and also am realistic when it comes to selling my own cars ( I don't expect to buy something that is crap and sell it for top price).

I just wondered what peoples thoughts are on this and if there is anything obvious I've missed? And if people think it is **** idea I'm quite prepared to take the flak :think:

goldspanners

it could work but as im sure your aware there are plenty of pitfalls.
but it does work for some folk,some even make a few quid while doing this.

as long as your prepared to take a hit if it all goes wrong then give it a go.

anewman

There used to be a TV programme a few years ago where they bought a car at auction, then sold it and took the proceeds to buy another at auction ad infinitum - the idea being to turn a crap car into a good car. Only ever saw one episode where they bought a Vauxhall Agila and sold it on for more than they paid.

terryya

Thanks for replies.

There doesn't seem anything obvious that I've missed, so I think I'll give it a go. I'm prepared to take the hit if I do lose money on it, which as far as I can see is the worst thing that is likely to happen.

michaelro

Have you factored in the Auctions cut?
You pay a fair bit more than the 'Hammer' price....

terryya

michaelro wrote: »

Have you factored in the Auctions cut?
You pay a fair bit more than the 'Hammer' price....

I should have put it in the OP, but yes I have included that in my figures. I bought my last car at the auction about 15 months ago so I do have a bit of experience.

harveybobbles

Remember at BCA the "buyers Fee" which is a couple of hundred quid on top of the hammer price.

Yes buying cars this way does work. My boss changes his car every 12 months and so do I.

The only problem with auction buying is the lack of any warrantyt or come back. So if you bought some kind of dog - which lets face it there are loads - specially these lateest technology diesels.

terryya

harveybobbles wrote: »

The only problem with auction buying is the lack of any warrantyt or ome back.. So if you bought some kind of dog - which lets face it there are loads - specially these lateest technlogy diiesels.

I realise cars are 'sold as seen' but am I right or wrong in thinking that, provided servicing is done as required then you would get the remainder of manufacturers warranty?

harveybobbles

Assuming the car is still under the manuf'r warranty...

lawrie28

your better buying a £2k car that has been looked after and selling every 3-4 months. Prices change very little in that short period, specially if you buy popular models privately and can clean them up whilst you own them.

terryya

lawrie28 wrote: »

your better buying a £2k car that has been looked after and selling every 3-4 months. Prices change very little in that short period, specially if you buy popular models privately and can clean them up whilst you own them.

My ideal scenario would be to keep the 9 year old Clio we have but my wife wants something newer which is fair enough. This is just my way of trying to keep her sweet but also try to minimise the pain on the wallet.