One year old car depreciation

DadDee

Hi

I was looking to buy about a year old Volvo XC90. How much do you expect a new car to depreciate in year one?

Comparing the used car prices with drive the deal or other car broker prices, it appears that I would be better off buying new.

e.g. a fully loaded XC90 R-Design would set me back 32k using drive the deal. What would be a reasonable price to offer for a year old model ?


DD

sam1970

I think the problem you will face is that this car is very much in demand,although personally I cant understand why!!..Last year a friend of mine spent nearly 4 months visiting volvo dealers looking for a reasonably priced one year old one to no avail..not many availble and were still expensive..eventually he bought a 4 years old one from auction for £16000 (60000 miles) which I thought was mad..but he just fell in love with this model

harveybobbles

Problem is with the one year old ones - they look nowt different to when they launched them in 2002...

Nearly_Old

Not sure about Volvos especially if it is a popular model but just over 4 years ago we paid £21,850 for a 6 month old BMW with 1600 miles on the clock that had an original price of £29,750. I would expect to at least get a discount equivalent to the VAT that was paid when it was first sold as a new car.

Kilty_2

Nearly_Old wrote: »

I would expect to at least get a discount equivalent to the VAT that was paid when it was first sold as a new car.

You'd think so, but some cars seem to have strange 1 year old values.

http://www.autotrader.co.uk/classified/advert/201209452704226/

I paid £5,550 for a brand new 2011 '11' identical to that except non metallic paint in March 2011.

getmore4less

The big mistate often with second hand cars is to look at list price for that model and not the prices they were really selling for.

Vauxhals start 20-30% cheaper
Skoda have had vat free on various models for well over a year.
one model 1.6mpe was £11k dealers want £12k now.


Also you have to factor in the demand, if new waiting list is 6months then the demonstrators, stock will get a premium over something that is off the shelf.

neilmcl

DadDee wrote: »

Hi

I was looking to buy about a year old Volvo XC90. How much do you expect a new car to depreciate in year one?

Comparing the used car prices with drive the deal or other car broker prices, it appears that I would be better off buying new.

e.g. a fully loaded XC90 R-Design would set me back 32k using drive the deal. What would be a reasonable price to offer for a year old model ?

DD

Have a look on http://wisebuyers.co.uk/ or other used car valuation sites to see what you should be looking to pay for a used XC90.

Have you considered PCP of PCH? Sometimes this sort of finance can work out cheaper than a cash purchase, especially when a good dealer discount is thrown in as well.

redpin_2

volvos are definately cars for life though, probably why they dont depreciate that quickly

paddedjohn

redpin wrote: »

volvos are definately cars for life though, probably why they dont depreciate that quickly

Then why is it for sale then;)

sam1970

redpin wrote: »

volvos are definately cars for life though, probably why they dont depreciate that quickly

sadly this is not true..the only good thing about volvos is safety and the fact that they are very solid cars otherwise they tend to be ugly and expensive to run and that is why they depreciate badly although admittedly this model (XC90) is in demand...My first car 22 years ago was volvo and definitly none of the following 5 car I owned was volvo

Destination_..._?

Soon as your spanking new car front tyres leave the forecourt it's already depreciated in price by a few thousands . Sounds mad doesn't it that's the reality .