cars = waste of money

pearl1

have a 07 coupe 2litre auto...wanta sale it but having no luck garages have dropped price by ten grand how does a car de-value that much in a year :mad:

biko

That's the problem with new cars, depreciation.

rebel.ranter

Welcome to reality!!

Everything bar food & a roof over your head can be described as such.....

Material things are put here to tempt us, you'll either spend the money on short term hits or die with it in the bank.
That's life.

Barr

that seems an awful lot in a year , are u just trying to trade it in for cash .. this way your going to get the worst possible price for your car

PauloMN

pearl1 wrote: »

have a 07 coupe 2litre auto...wanta sale it but having no luck garages have dropped price by ten grand how does a car de-value that much in a year :mad:

Why are you selling an '07 car? What coupe is it? How long is it for sale, and who have you tried selling it to?

Don't sell a car to a garage unless you want to use your shirt.

Also the auto won't help here.

colm_mcm

Oh dear.
I presume it's a Hyundai Coupe, what colour is it?

The reason nobody wants your car is that a 1.6 model is only 27k or so, and 07 models would devalue by about 5-6k in the first year, yours is no more desirable than a 1.6 manual (less desirable actualy) so only worth the same second hand.

IMO Coupes are popular because they give nice looks with small running costs and low tax/insurance.
Give most people the choice and they'd have an 04 3 series coupe over an 07 Hyundai Coupe 2.0

Why not keep the car a bit longer?

blackbox

Only a waste of money if you didn't get your money's worth of enjoyment from it.

dewsbury

A lot of financial naiveity here , I am afraid.

2 golden rules.

1. You will never pay more for a car than with via a main dealer.

2. You will never get less for a car than when you try to sell it to a main dealer. (Somebody has to finance their fancy showrooms and staff numbers... thats you!).

pearl1

love my car but doing to much travelling costing about 400 a month on petrol didn't do my research but i expected to loss 5 or 6 grand but not 10...jus wanta trade it in.. fingers crossed i might get rid of it privately...

colm_mcm

don't do anything rash! even if you got a more affordable car, Golf etc. how much would you actually save on fuel?

you're prob getting around 30mpg from it, even if you get a 1.4 hatch you may only get 40mpg, or in monetary terms, save around €100-120 a month on fuel.

If you're looking at diesel cars, and spot something like a new Golf TDI Sportline or Auris D-4D, you'll still be spending money along with the Coupe.

pearl1

ah yeah won't be letting it go unless i get something decent for it d bank won't let me... maybe i'll keep it till nxt year..

DonJose

biko wrote: »

That's the problem with new cars, depreciation.

I plan on keeping every new car I buy for 5 years, then pass them onto the kids

mick.fr

Let him sale it, who cares anyway, he can't even afford paying for gas.

briano1984

to buy an 07 would be about 26 or so from a garage...they're only offering u 10g less so they can get their own profit for the car after they sell it on. selling it privately will be extremely hard, fact that it is an auto will make it that much more difficult. my friend works for hyundai garage and says every garage HAVE to get a 2l auto in but they take months to sell. if ur going to be travelling a lot then diesel is prob the way to go and could look at even 1.9tdi golf or a focus tdci

bazz26

As pointed out your Coupe being a 2.0 litre petrol and an auto has a very limited market in this country. I would image 95% of all Coupes sold in Ireland are 1.6 litre and manuals, the attraction being that they are affordable to run while still looking stylish.

Also your never going to win selling a car that is only a year old. That €10k in depreciation you are loosing can buy you alot of fuel.

-Chris-

bazz26 wrote: »

Also your never going to win selling a car that is only a year old. That €10k in depreciation you are loosing can buy you alot of fuel.

+1.

You've taken your hit on depreciation, it's much more than the fuel you woulda saved. Don't sell the car for another year or two, wait till the depreciation's leveling out.

Also, if you financed the car, you're probably in a couple of grands worth of negative equity at the moment, so you're losing €10k AND re-financing the negative equity, just to save a few quid on fuel!

Stick with the Coupe.

Gegerty

biko wrote: »

That's the problem with new cars, depreciation.

And old cars don't depreciate? The whole "your car depreciation is double in the first year" milarky is a myth, probably used by car sales men taking trade ins etc. The reason why a lot of 1 year old cars are sold with huge depreciation is because they are usually company cars. BIK remains constant throughout the life of the car and coupled with high mileage alot of companies/self employed will sell after one year. High mileage = more depreciation, not to mention the more money you have the less you care. Try to find a 1 year old car that doesn't have high mileage at a hugely depreciated value. You won't.

My 2 cent.

-Chris-

Sorry Gegerty, I don't agree with you.

Gegerty wrote: »

And old cars don't depreciate? The whole "your car depreciation is double in the first year" milarky is a myth, probably used by car sales men taking trade ins etc.

All cars depreciate the most in the first year. This is mainly due to two reasons:
1) Reg plate snobbishness
2) The difference between the cost of the one year old car vs a new car

By this I mean that if you bought a car for €30,000 and then traded it in to me a year later, I'd probably only give you €24-25,000 on it max (regardless of mileage) because if it's above €25k, by the time I've serviced & cleaned it, put profit on it and put negotiation room on it I'll have it on a forecourt for €28,000. Anyone who sees that will say, "sure why would I buy that when I could have a new one for €2k more".

You need to take it in at a price where you can spend the money on it and make some profit on it, while still leaving clear air between it and a new one.

Gegerty wrote: »

The reason why a lot of 1 year old cars are sold with huge depreciation is because they are usually company cars.

This isn't true. 6 years of experience in fleet management tells me the average time to keep a car for a company is 3-4 years unless it's a particularly high mileage driver/profession.

Gegerty wrote: »

BIK remains constant throughout the life of the car and coupled with high mileage alot of companies/self employed will sell after one year.

I don't know about self employed, but companies are driven to keep costs down and so would be wreckless to have a fleet policy that says they change car every year - it's the absolute least cost-effective way to run a fleet.

Gegerty wrote: »

High mileage = more depreciation

Absolutely - mileage, age and condition are the main contributors to a car's price (compared to a similar car with average mileage/condition).

Gegerty wrote: »

not to mention the more money you have the less you care.

I'm selling to company directors and property developers, they drive the hardest bargains!! Only the nuoveau-riche are splashing like it's free.
The wealthy will spoil themselves as they've become used to quality and service, they'll spend money if it gives them a thrill or if they see value in what they're buying, but they won't waste money...

Gegerty wrote: »

Try to find a 1 year old car that doesn't have high mileage at a hugely depreciated value. You won't.

Any 1 year old car will have out-of-proportion depreciation, high mileage will exaggerate this further.
If you bring me a 1 year old car with 10kms on it, it'll still have taken a SERIOUS hit as the buyers will still value it less than a new/unregistered car with 10kms on it.

sesswhat

AudiChris wrote: »

Any 1 year old car will have out-of-proportion depreciation, high mileage will exaggerate this further.
If you bring me a 1 year old car with 10kms on it, it'll still have taken a SERIOUS hit as the buyers will still value it less than a new/unregistered car with 10kms on it.

And within that year the quickest drop is the instant you drive it out of the garage, when to every other potential buyer it becomes a second-hand car. (Unless of course you've bought something that has a 5 year waiting list:))

Esel

Barr wrote: »

... are u just trying to trade it in for cash .. .

You: Hi, I'd like to trade my car for cash. Do you have much cash in stock?

Dealer: You want to sell the car, is that it?

You: No, I want to trade it for cash. How much cash will you trade me for it?

Dealer: F*ck off, smartarse.

pburns

Buy at 1 year old, sell at 4 and try to shift it before the replacement model reaches the s/h market:)...

Not that I've managed to follow this formula myself - there are usually mitigating circumstances - for me it's this years VRT changes and the fact that some models/specs I'm interested in are not on the market yet.

But I've been offered 13 grand as a trade-in for a 04 car i bought at 1 year old for <23 grand. That's not too bad IMO.

At the end of the day though I'm at a stage where I'll buy what I like rather than obsessing TOO much about depreciation. The OP only has herself to blame for lack of reserch though and as others have said, best option is probably to hold onto it at this stage...

Gegerty

AudiChris wrote: »

By this I mean that if you bought a car for €30,000 and then traded it in to me a year later, I'd probably only give you €24-25,000 on it max (regardless of mileage) because if it's above €25k, by the time I've serviced & cleaned it, put profit on it and put negotiation room on it I'll have it on a forecourt for €28,000. Anyone who sees that will say, "sure why would I buy that when I could have a new one for €2k more".

For this reason you'd be mad to trade in a 1 year old car. But you could sell it privately. People who know a bargain will know that when you buy 1 year old car you're basically getting €3K-€4K off a new car. But I agree that the majority of people would rather go for a brand new.