Has your car Lost HALF its Value ?





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  1. #1
    JeepOnly Guest

    Default Has your car Lost HALF its Value ?

    Found this on IOL Motoring. March 22, 2007. If it works correctly you should be able to link to one of two lists in this article to see how much of its value your pride and joy has lost.


    HAS YOUR CAR LOST HALF ITS VALUE?

    Some cars on the SA market lose up to half their value in one year according to a study of car depreciation by Moneyweb, including certain Renaults, Chryslers and Nissans.

    Depreciation is often the most expensive component of car cost in the early months of a car's life.

    It found that Volkswagen, Mercedes-Benz and Porsche held their value best in percentage terms while three models of Renault's Laguna range lost the most value in the first year.

    The Laguna 3.0 Privilege depreciated by 52 percent and the Laguna 2.0 Expression by 49 percent.

    Other poor performers were Chrysler's Crossfire sports car which plummeted in value by more than 40 percent, while the Nissan Almera lost 38 percent of its new value in a year

    'A car's residual value is hit heavily in the year it's discontinued'
    .

    The table is split into two pages car manufacturers A-L and M-Z - and is based on Trans-Union's Auto Dealers' Guide, the "bible" of used car values, which uses real prices paid for cars across the country as a reference for car dealers.

    It compares the new prices of vehicles to their present trade value and expresses the depreciation as a percentage, based on a car in standard condition with an average mileage.

    Econometrix analyst Tony Twine said: "A car's residual value is hit heavily in the year it's discontinued; its value is lower than usual a year later but by the third year it's more or less back to normal

    'Many manufacturers and dealers dispute the use of the Auto Dealers' Guide figures but can't offer a substitute'
    ."

    Another motoring analyst said Nissan's volume models depreciated badly due to huge sales to the rental industry at severely discounted price; these cars were then dumped on the dealer network after their time with the rental companies.

    He added: "Almeras also suffered from a falsely inflated new list price to make them appear to be priced along with their competitors. However, the real price you paid was always way below the stated retail price."

    The car that held its value best was the Porsche 911 Carrera Cabriolet which depreciated by 9.49 percent in a year - a modest percentage, although a rather steep R94 425 in rand terms.

    The next best value-holder was the Mercedes ML SUV at 10 percent in one year. The Porsche and VW stables had the most models with the lowest depreciation.

    Data disputed

    The average depreciation of the 824 vehicles surveyed was 22 percent in the first year compared to 27.16 percent in 2005.

    Twin said many manufacturers and dealers disputed the use of the Auto Dealers' Guide figures in the survey but could not offer a substitute as no other statistics exist in the motoring industry.

    "When you trade in your car, the first thing dealers take out of their pocket is this guide. They seldom budge from the figures when working out a trade-in value."




    .

  2. #2
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    SO the best 1 year old car to buy will be a renault. For that matter almera
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  3. #3
    Beans Guest

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    Yep they go according to the book but always trade in at say 10 under the listed price but resale 10g overbook value

  4. #4
    JeepOnly Guest

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    Quote Originally Posted by Engel View Post
    SO the best 1 year old car to buy will be a renault. For that matter almera
    Yep, a Renault Laguna 3Lt would have lost 51% of its value in one single year from the original purchase price of R316 000,00 down to R151 000.

    A Audi A6 2.7T would have lost 30% from purchase of R508k down to R250k,

    and a shiny Chrysler Crossfire would have lost 40% .


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    Cant find the COlt on the list..... Hope this doesnt mean that the car is is valueless

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    Buying a new car is insanity... especially considering that now adays cars are servised on servise plan so rarely have dodgy servises been done to save money.

    Especially if its a 4x4 and you want to use it. The moment you crest a hill and leave a single mark underneath anyone going to buy it will have images of Havago airborne

    Nowadays engines can run to 300000km without wearing. Aslong as you look after them.

    Will never buy a new car... unless I win the lottery and want my lambo a specific colour
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  7. #7
    Derren Guest

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    Quote Originally Posted by BigRed View Post
    Cant find the COlt on the list..... Hope this doesnt mean that the car is is valueless
    The list only seems to include cars and SUVs... there is no Hilux either.

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    he he.......valueless hiluxes
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    That list also explain why a very nice Jeep Overland can be had for a bargain price - losing value at a rate of more than 20% pa. The good news is that the new shape Grand Cherokee is also losing value at a rate above 20% pa, therefore in a few years time they'll also become bargains - offering a lot of car for very little.


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    But reality is that when you buy secondhand, usually the price is loaded heavily and the salesman' responce is...: "These bakkies/suv's are sought after"...

    EDIT:... A friend of mine picked up a '94 Hilux D/C 4x4, full house, and fully kitted up for R35k last week from a dealer...because he works for the dealer.....
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  11. #11
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    Quote Originally Posted by BigRed View Post
    Cant find the COlt on the list..... Hope this doesnt mean that the car is is valueless
    If it is I'll offer you R1 for it.....

    I agree with Biggles - buying a new vehicle makes no economic sense. I saved 32% of the new retail price by buying a 2yo Colt... (ok, that's not totally right, but you get my drift.
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  12. #12
    JeepOnly Guest

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    And to add fuel to the fire, I read somewhere the other day that Bankfin and Wesbank are currently repossessing something like 2500 vehicles per month in South Africa

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