losing money on a car

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geminimustang
Joined: Mon 11 Jun, 2012 21:06
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losing money on a car

Post by geminimustang »

It never ceases to amaze me how people on this forum complain about the depreciation of their beloved zed.Surely,it's the very fact that cars depreciate in value that has made the z3 affordable to most who've purchased one lately.Long may it continue.Ours was £28K new,was purchased as a wedding gift for somebody and at 15 years old,66K on the clock,we bought it for the princely sum of £2,650.If cars never went down in price,the zed wouldn't be on our drive now.Depreciation on cars is to be welcomed.
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Badman gee
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Re: losing money on a car

Post by Badman gee »

You lose money on most cars (not all).

It's part of life.
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BladeRunner919
Joined: Fri 17 Feb, 2012 20:18
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Re: losing money on a car

Post by BladeRunner919 »

I agree. I do find the 'it's worth more than that' comments amusing - it's worth what someone will give for it and not a penny more.
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Southernboy
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Re: losing money on a car

Post by Southernboy »

...I'll second that...with a rider...If you have a particularly exemplary sample of the car, it will command a better price. ie. If it's well maintained, is obviously stunning in performance and finish inside and out, and purrrrrs like a happy pussy...Something like my car, which I have been offered over £10K for... :D
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miller1098
Joined: Fri 18 Jan, 2013 22:41
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Re: losing money on a car

Post by miller1098 »

If you enjoy owning and driving your Z its money well spent, you here it said often this life isnt a rehearsal and i can vouch for that, pick your pleasure and take your choice if it costs a few £ so be it.theres not many things that dont .I know all the other cars ive had have lost more than the Z for a lot less pleasure
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pingu
Joined: Fri 30 Apr, 2004 16:01
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Re: losing money on a car

Post by pingu »

The only way to make money on cars is to buy cheap, spend the minimum, and to sell it on at market value.

Anyone who is offered big bucks for their car has spent much bigger bucks to make it desireable.

My M cost me £6k and I've been offered £7.5k for it. It is NOT worth more than I paid for it. I have spent about £4k on fixed costs (getting the car ready after buying it, MOTs, VEDs and insurance), £1k on variable costs (servicing and other things that have gone wrong because I used the car) and £2.5k on fuel

I have four vehicles, only one of them is in profit. That is because I am paid to use it and it is so old that it has reached rock bottom value and just having an MOT doubles its value.

I agree with the OP and I am looking forward to the day I can get a Cayman R for around £10k :D .
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Eastsix
Joined: Mon 08 Nov, 2010 00:53
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Re: losing money on a car

Post by Eastsix »

I'm looking to well my zed at the moment- the car ive just bought has depreciated a great deal more in the last 2.5 tears than my zed has, so i can sell it at what seems a painfully low price because the car i bought to replace it has come down as well.
Or i just keep it. We'll see. Im 36 now, so planning ahead im looking forward to a heavily depreciated Jaguar F type in my mid forties :D
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pingu
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Re: losing money on a car

Post by pingu »

Eastsix wrote:... so planning ahead im looking forward to a heavily depreciated Jaguar F type in my mid forties :D
Good man. Most cars 50% every three years (some lose less, some more).

Jags have worse residuals than most, so plan accordingly :wink: .
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Badman gee
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Re: losing money on a car

Post by Badman gee »

Eastsix wrote:I'm looking to well my zed at the moment- the car ive just bought has depreciated a great deal more in the last 2.5 tears than my zed has, so i can sell it at what seems a painfully low price because the car i bought to replace it has come down as well.
Or i just keep it. We'll see. Im 36 now, so planning ahead im looking forward to a heavily depreciated Jaguar F type in my mid forties :D
Good luck fitting your zed in a well :D

And you have shed just 2.5 tears too.
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TitanTim
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Re: losing money on a car

Post by TitanTim »

Nothing like driving a brand spanking new car out the showroom, who cares whether they lose money :lol:

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Badman gee
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Re: losing money on a car

Post by Badman gee »

TitanTim wrote:Nothing like driving a brand spanking new car out the showroom, who cares whether they lose money :lol:

Tim.
Too much loss on a new car, been there done it

Ex demo or 2 year old a lot better.
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Gazza
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Re: losing money on a car

Post by Gazza »

I bought a new RS Turbo Escort in 1988 for £11500, sold it 15 months later for £8000, losing £3500 stinks, I'll never buy a new car again unless the Euromillions comes in :)
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gookah
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Re: losing money on a car

Post by gookah »

I bought a brand new 320 coupe, 18 months later when I sold it, I had lost £8000.
yes BMWs have better residuals at 3 years old because you only lose 50% of £20k, rather than the 75% of an £8K car .... thats 10 grand versus 6 grand, tell me how that is supposed to be better?
I could have bought that clio with what I lost. :head:
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Badman gee
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Re: losing money on a car

Post by Badman gee »

Vat takes a lot away!
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Badman gee
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Re: losing money on a car

Post by Badman gee »

As somebody once told me. Never buy new!
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BladeRunner919
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Re: losing money on a car

Post by BladeRunner919 »

Badman gee wrote:As somebody once told me. Never buy new!
I agree, but just be glad that a lot of people do. If they didn't, there wouldn't be second-hand bargains to be had!
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TitanTim
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Re: losing money on a car

Post by TitanTim »

Badman gee wrote:As somebody once told me. Never buy new!
Why? if you want a new car, willing to pay for it then its not a problem. Whatever you buy looses value.

Problem with secondhand these days is very few people actually bother to look after their cars from new.

Tim.
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Del
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Re: losing money on a car

Post by Del »

Plenty of people buy new cars. You can pick exactly what colour and fittings you want, you can be pretty sure of buying something in perfect condition which has not been molested by anybody else. It will usually be extremely reliable and you would normally have a lengthy warranty and possibly a servicing deal. You also avoid the headache of having to check-out the condition of a second-hand car, which always carries some risk.

As a second-hand buyer you might benefit from the big initial loss suffered by the first owner if you buy at an auction, but not via a dealer.

People also enjoy the prestige of owning a new vehicle in the same way that people go for the latest mobile phone.
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BladeRunner919
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Re: losing money on a car

Post by BladeRunner919 »

Del wrote:As a second-hand buyer you might benefit from the big initial loss suffered by the first owner if you buy at an auction, but not via a dealer.
That doesn't make any sense, unless you're suggesting a second-hand car from a dealer costs the same as a new one??
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Badman gee
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Re: losing money on a car

Post by Badman gee »

You take a big hit on new cars, a lot less on second hand.
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Jonttt
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Re: losing money on a car

Post by Jonttt »

Depends how you finance them, there are some bargain deals out there on new cars.

The way I look at it the zed owes me nothing as even at 100% depreciation it is still the cheapest car I've run for many many years eg I'm back in a merc as my daily driver and the last one I had depreciated nearly £50k in 30 months but the deal I got on this one I could not believe.

There are some older classics which I would say will always be a good investment and are starting to appreciate :twisted:
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pingu
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Re: losing money on a car

Post by pingu »

Jonttt wrote:Depends how you finance them, there are some bargain deals out there on new cars.

The way I look at it the zed owes me nothing as even at 100% depreciation it is still the cheapest car I've run for many many years eg I'm back in a merc as my daily driver and the last one I had depreciated nearly £50k in 30 months but the deal I got on this one I could not believe.

There are some older classics which I would say will always be a good investment and are starting to appreciate :twisted:
If I could afford 100% depreciation on an S54 and £50k depreciation on a daily driver I would be buying new every time. I would still do an ex-works deal as a new car is not always a new car. Just take a look around the Grimsby area to see what I mean :wink: .

It must be nice not to feel the pain of adding an option that costs £2000 instead of popping down to the shops and paying £100.
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Jonttt
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Re: losing money on a car

Post by Jonttt »

Ah but when you get >£10k worth of extra for free it cheaper than a £100 tomtom :wink:
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TitanTim
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Re: losing money on a car

Post by TitanTim »

pingu wrote:I would still do an ex-works deal as a new car is not always a new car. Just take a look around the Grimsby area to see what I mean :wink: .
New BMWs are built to order as was my E89, the dealer called me on a Monday to say the it was on the production line and again on the Wednesday to say it was being shipped :lol:

Tim.
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pingu
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Re: losing money on a car

Post by pingu »

TitanTim wrote:
pingu wrote:I would still do an ex-works deal as a new car is not always a new car. Just take a look around the Grimsby area to see what I mean :wink: .
New BMWs are built to order as was my E89, the dealer called me on a Monday to say the it was on the production line and again on the Wednesday to say it was being shipped :lol:

Tim.
They are VERY unlikely to be ragged at the factory, but I'm always hearing wheelspins and high revs at the dealers :wink: .

Have you seen around the back of the dealers and seen who works on them to make them nice and shiny?

In some cases, they are no better than the car washes you see at disused petrol stations.

It's good to know that the same things make us smile - just for different reasons :) .
Pingu
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TitanTim
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Re: losing money on a car

Post by TitanTim »

pingu wrote:
TitanTim wrote:
pingu wrote:I would still do an ex-works deal as a new car is not always a new car. Just take a look around the Grimsby area to see what I mean :wink: .
New BMWs are built to order as was my E89, the dealer called me on a Monday to say the it was on the production line and again on the Wednesday to say it was being shipped :lol:

Tim.
They are VERY unlikely to be ragged at the factory, but I'm always hearing wheelspins and high revs at the dealers :wink: .

Have you seen around the back of the dealers and seen who works on them to make them nice and shiny?

In some cases, they are no better than the car washes you see at disused petrol stations.

It's good to know that the same things make us smile - just for different reasons :) .
The engines are tested on the factory floor during production to high revs. Regarding dealers depends on the dealer, mine is spot on and you can request the car isn't Valeted on delivery. As my dealer did the handover indoors it was in their interest to ensure the Zed was 100% which it was, no scratches or swirls under the showroom lights. They understand when customers are spending alot they have to ensure 100% satisfaction or lose the customer. Reason why I still take Z3 to them :wink:

Tim.
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Badman gee
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Re: losing money on a car

Post by Badman gee »

The 20 percent vat is the biggest loss. Most cars loose 50 percent plus of there value in 3 years.

It's best to buy a 3 year plus car to limit depreciation!
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TitanTim
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Re: losing money on a car

Post by TitanTim »

Badman gee wrote:The 20 percent vat is the biggest loss. Most cars loose 50 percent plus of there value in 3 years.

It's best to buy a 3 year plus car to limit depreciation!
I like the smell of new and that no one else has picked their nose in it amongst other bodily losses :)

Tim.
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Badman gee
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Re: losing money on a car

Post by Badman gee »

One thing Tim, your car would be a great secondhand buy!
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