Depreciation on older diesels.

Anto123

I am thinking of buying a Honda accord aged around 03 or 04. I've done my sums on running costs between a petrol and diesel but I have a question about depreciation.

The motor tax on an 04 diesel accord is €860 a year (it's taxed as a 2.3). The tax on a new diesel accord is €302 a year.

Do people think diesels that fall under the old system are going to be very hard to sell in a few years time? In 2013, for example, is there going to be any market at all for the old model accord when a 5 year old 08 will be over €500 a year cheaper to tax?

I'm sure this applies to many models of car, not just the accord.

mullingar

IMO, it only effects 2007 cars, buyers will strech to a 2009 just for the 'perception' of cheaper motoring due to road-tax.

Truth is Road tax is a tiny percentage of the full running costs when you include depreciation.

Cars 2003/4/5/6 are a fraction of the price of an 2008 car due to the cars loosing 50-70% of its value once it hits 4-6 years old, so depreciation wont be a factor on comparing to a 2008 car to a 4+ year old diesel.

BlackWizard

I'm not sure that the Honda diesel engine in those years is very reliable. You might want to look into that before setting your heart on it.

Anto123

I agree with you Mullingar that that’s the case now, but what about in a few years time? In 3 or 4 years time the 2008 car will have taken most of it’s hit with regards to depreciation and a difference of €500 a year will be a sizable enough chunk of the cost of ownership for someone buying one.

I’ve heard that about the diesels myself wizard. I do very low milage so I’ll almost definitely be getting a petrol. I have a Honda petrol at the minute and I’ve grown very used to the bulletproof mechanics.

Gophur

mullingar wrote: »

IMO, it only effects 2007 cars, buyers will strech to a 2009 just for the 'perception' of cheaper motoring due to road-tax.

Truth is Road tax is a tiny percentage of the full running costs when you include depreciation.

Cars 2003/4/5/6 are a fraction of the price of an 2008 car due to the cars loosing 50-70% of its value once it hits 4-6 years old, so depreciation wont be a factor on comparing to a 2008 car to a 4+ year old diesel.

Given the difference in Road Tax quoted, €558, that would pay the interest on a €5,000 loan, so the older car is worth €5,000 less than an equivalent car with the same engine.
As for 2009 cars? There were so few of them sold, one will not have much choice when it comes to buying them, used, in a few years time.

In 5 years time I reckon they will have changed the tax system again.

danny50

i agree with you rover james i have a 9 year old diesel €600+ for the tax and thought about going '08 to save on tax and i reckon as soon as i go for it they'll change it.

Gophur

With that logic, lads, nobody would ever do anything.

Gophur

Gophur wrote: »

With that logic, lads, nobody would ever do anything.

Not really I would think factoring in the road tax as a factor in selling a car in 5 years time is not a good strategy as it may well change in that time.