Buying a £20k car, sell in 2 years, just pay off depreciation

force_ten

mark what have you been drinking?

you can buy a 20K car today and sell it tomorrow for 16K

you can buy a 20K car today and sell it in two years time for about 12K

oldhand

Better not be a renault,pug or citroen.theres a lot more than 2k depreciation there..........brother in law bought a citroen and found after less than a year it was usless for carrying family plus their gear,he admitted he had been warned but seemed a good idea at the time.Went to change and his "value" was so bad I honestly saw him cry in his house same night.......

AdrianC

So how about something nicely German-prestige?
Say an Audi A1? £20k gets you into a diesel S-Line, without much change.
Private sale after three year? £11k or so. Trade-in, obviously, will be lower.

When it comes down to it, though, the OP is really just wanting to re-invent the PCP.

loskie

I wonder if he hasn't heard of leasing

bigjl

AdrianC wrote: »

So how about something nicely German-prestige?
Say an Audi A1? £20k gets you into a diesel S-Line, without much change.
Private sale after three year? £11k or so. Trade-in, obviously, will be lower.

When it comes down to it, though, the OP is really just wanting to re-invent the PCP.

£20k for an Audi A1!

Wow, and people pay this kind of money?

Though I have seen loads of A1 at Car Supermarkets for under £10k retail.

So Inwould have my doubts that they would achieve anything like £11k privately.

gilbert_and_sullivan

bigjl wrote: »

£20k for an Audi A1!

Wow, and people pay this kind of money?

Though I have seen loads of A1 at Car Supermarkets for under £10k retail.

So Inwould have my doubts that they would achieve anything like £11k privately.

People have been known to pay to be beaten, a similar desire presumably to spend up to £20k of their own (or worse borrowed plus interest) on one of the ugliest small cars of the last 20 years.
I was near one the other day in traffic, basically standard issue grey/silver, then got various different paint touches on it at roof window and sill lines plus bumpers, in red, plus a racing number stencilled on the door, ludicrous didn't begin to cover it.

Still beauty in the eye takes all sorts etc, still think the money would be better spent at miss whiplashes.

AdrianC

bigjl wrote: »

£20k for an Audi A1!

Wow, and people pay this kind of money?

It isn't quite enough to get into a 1-series.

MEM62

MARKMAKAVELI wrote: »

Let's say I get a loan for £20k which costs me £575pm/3yrs. I use it to buy a £20k car and it looses 2k per year in depreciation.

I could then sell it in 2 years for £16k

What £20K car depreciates at a rate of 10% per year? There lies the hole in your plan.

marlot

bigjl wrote: »

£20k car that only loses £2k a year in depreciation?

Good luck with that...

You have to choose something a little unusual.

I bought a 4,000 mile 11 month old landcruiser in March 2008 for £24k.

Nearly eight years later, and with 57,000 miles it's still worth about £10k, so a bit less than 2k a year depreciation.

On the other hand, I've lost a lot more on our other car - an mx-5.

victor2

marlot wrote: »

You have to choose something a little unusual.

I bought a 4,000 mile 11 month old landcruiser in March 2008 for £24k.

Nearly eight years later, and with 57,000 miles it's still worth about £10k, so a bit less than 2k a year depreciation.

On the other hand, I've lost a lot more on our other car - an mx-5.

But what did it lose in the first two years, which is what the OP was looking at? A bit more than the 2K a year referred to, I would imagine.