Depreciation on car

DonalB1

Hi,

I bought a 08 A5 in January this year. I paid close to 12,000 for it. That was the going rate at the time. Cheapest was about 10,500. Some were 14,000.

Mileage is 80k. Thinking about maybe selling it and just looked on done deal and the going rate is now 6,000-7,000.

What has happened in the last 11 months to make a car depreciate that much? What am i missing?

Atlantic Dawn

If yours is the Coupe the market would be more limited than the saloon.

DonalB1

Atlantic Dawn wrote: »

If yours is the Coupe the market would be more limited than the saloon.

It is the coupe, but the prices I listed were for the coupes.

I always thought the depreciation on a car slowed with age. The a5 appears to have depreciated by nearly 50% in the past year.

I expected it to be worth around 8,500-9,000 given I paid nearly 12,000 less than a year ago.

Any other a5 owners finding this?

jsd1004

DonalB1 wrote: »

Hi,

I bought a 08 A5 in January this year. I paid close to 12,000 for it. That was the going rate at the time. Cheapest was about 10,500. Some were 14,000.

Mileage is 80k. Thinking about maybe selling it and just looked on done deal and the going rate is now 6,000-7,000.

What has happened in the last 11 months to make a car depreciate that much? What am i missing?

Cars have their biggest depreciation for their first 3 years and next after their 7-10 year cycle. Most cars are effectively worthless after 10 years unless they are classics rare or niche. Between 7 and 10 years is similiar to new to 3 year.

bazz26

DonalB1 wrote: »

Hi,

I bought a 08 A5 in January this year. I paid close to 12,000 for it. That was the going rate at the time. Cheapest was about 10,500. Some were 14,000.

Mileage is 80k. Thinking about maybe selling it and just looked on done deal and the going rate is now 6,000-7,000.

What has happened in the last 11 months to make a car depreciate that much? What am i missing?

1. I think paying 12k for a 9 year old A5 was a bit high to being with.
2. Your car is now 10 years old which is a major milestone in a car's age and resale value.
3. Weaker sterling makes it even more attractive to travel across the Irish sea which has had a detrimental impact on resale values of used cars here.
4. The new model A5 is now well established which reduces the resale values of the old model again.

jsd1004

bazz26 wrote: »

1. I think paying 12k for a 9 year old A5 was a bit high to being with.
2. Your car is now 10 years old which is a major milestone in a car's age and resale value.
3. Weaker sterling makes it even more attractive to travel across the Irish sea which has had a detrimental impact on resale values of used cars here.
4. The new model A5 is now well established which reduces the resale values of the old model again.

If it was a performance petrol model it might be desirable but I presume it is a diesel and an old or indeed any diesel is just a liability at the moment.

colm_mcm

jsd1004 wrote: »

If it was a performance petrol model it might be desirable but I presume it is a diesel and an old or indeed any diesel is just a liability at the moment.

Can you explain that?

NIMAN

colm_mcm wrote: »

Can you explain that?

Maybe more likelihood of expensive repairs?

DonalB1

jsd1004 wrote: »

If it was a performance petrol model it might be desirable but I presume it is a diesel and an old or indeed any diesel is just a liability at the moment.

It's a petrol. I'm just surprised that when buying it earlier this year I couldn't find any in the same condition with mileage under 90k for less than 11k. That was clearly the going rate 11 months ago. So I'm baffled to how it has decreased so dramatically

jsd1004

colm_mcm wrote: »

Can you explain that?

Yes. If it was a RS or S it might have long term value but an out of fashion TDI is effectively worthless

bazz26

An S5 or RS5 cost way more when new over an A5 diesel and also attract a different type of desirability so I'd expect a S5/RS5 to be worth more. The car is 10 years old and it's value now is because of the reasons I mentioned before. It has nothing to do with it being an "old fashioned TDi" as you put it.

Your just using that reason as an excuse to validate your preaching about how you hate diesels so everyone else should too notions.

colm_mcm

jsd1004 wrote: »

Yes. If it was a RS or S it might have long term value but an out of fashion TDI is effectively worthless

Would you go away outta that! For buyers in the lower end of the market, diesel is still very much en vogue. The fact that the 08 diesels are finally adjusting means prices drop, as well as the fact that there are so many available in the UK.
If this is a conversation about depreciation, look at the price an S or RS was when new.

jsd1004

bazz26 wrote: »

An S5 or RS5 cost way more when new over an A5 diesel and also attract a different type of desirability so I'd expect a S5/RS5 to be worth more. The car is 10 years old and it's value now is because of the reasons I mentioned before. It has nothing to do with it being an "old fashioned TDi" as you put it.

Your just using that reason as an excuse to validate your preaching about how you hate diesels so everyone else should too notions.

Yes i hate diesels. Always did.Always will. Except for my tractor which is great. Diesels are pointless polluting horrible things. I still say a 10 year old A5 with a tractor engine that sounds terrible and has a sooty black exhaust is worthless. The UK has outlawed them and unless we do the same they will all end up here. Im a petrol head and love my cars but will never lower my self to driving a diesel. I must admit i had a FFRR with a miserable diesel engine but that has been my only weakness ever.

jsd1004

bazz26 wrote: »

An S5 or RS5 cost way more when new over an A5 diesel and also attract a different type of desirability so I'd expect a S5/RS5 to be worth more. The car is 10 years old and it's value now is because of the reasons I mentioned before. It has nothing to do with it being an "old fashioned TDi" as you put it.

Your just using that reason as an excuse to validate your preaching about how you hate diesels so everyone else should too notions.

Had lunch with my mechanic today. He worked on all my cars. Rare Lotus's American muscle cars, modern stuff. He laments the mess that is the whole diesel car market that is Ireland. Holes drilled in dpfs. Injectors that cost thousands. Turbos blowing taking the whole engine with them. He said he used to work with engines and now he is just immersed in diesel oil.

bazz26

It's a right pain alright every day trying to circumvent all those broken diesel cars abandoned on our roads.

pablo128

jsd1004 wrote: »

Had lunch with my mechanic today. He worked on all my cars. Rare Lotus's American muscle cars, modern stuff. He laments the mess that is the whole diesel car market that is Ireland. Holes drilled in dpfs. Injectors that cost thousands. Turbos blowing taking the whole engine with them. He said he used to work with engines and now he is just immersed in diesel oil.

Well you must have plenty of money then to be pouring petrol into your cars. Many people drive a diesel out of financial necessity.

It's only obvious your mechanic sees all these broken down diesels. people don't bring perfectly running cars to their mechanic. And I'd say 70% of cars sold in the last 10 year are diesel.

jsd1004

bazz26 wrote: »

It's a right pain alright every day trying to circumvent all those broken diesel cars abandoned on our roads.

1000 euro small bet on this time next year on if diesel market share has decreased or increased?

jsd1004

jsd1004 wrote: »

1000 euro small bet on this time next year on if diesel market share has decreased or increased?

Ill give 2:1

colm_mcm

jsd1004 wrote: »

Yes i hate diesels. Always did.Always will. Except for my tractor which is great. Diesels are pointless polluting horrible things. I still say a 10 year old A5 with a tractor engine that sounds terrible and has a sooty black exhaust is worthless. The UK has outlawed them and unless we do the same they will all end up here. Im a petrol head and love my cars but will never lower my self to driving a diesel. I must admit i had a FFRR with a miserable diesel engine but that has been my only weakness ever.

What about 3 or 5 year old diesels? Are they worthless too?

bazz26

So you've gone from nobody wanting diesels to having just a decreasing market share? Law of averages say you're bound to be right eventually. How are this Saturday's winning lotto numbers coming along?

jsd1004

Bet please?

jsd1004

jsd1004 wrote: »

Bet please?

Sigh

bazz26

Do you take bitcoins?

And why are you quoting yourself?

jsd1004

pablo128 wrote: »

Well you must have plenty of money then to be pouring petrol into your cars. Many people drive a diesel out of financial necessity.

It's only obvious your mechanic sees all these broken down diesels. people don't bring perfectly running cars to their mechanic. And I'd say 70% of cars sold in the last 10 year are diesel.

Yes I have lots of money. That is irrespective. Yes but 70% of all cars sold were diesel in the last 10 years. Now they are all blowing and they are meant to be saving people money.

jsd1004

bazz26 wrote: »

Do you take bitcoins?

And why are you quoting yourself?

I have real money. Looked at bitcoin years ago but i think it is probably more suited to you. My mistake. Im sure you made a fortune off it. I just worked hard.

Idbatterim

DonalB1 wrote: »

It's a petrol. I'm just surprised that when buying it earlier this year I couldn't find any in the same condition with mileage under 90k for less than 11k. That was clearly the going rate 11 months ago. So I'm baffled to how it has decreased so dramatically

it was what they were asking. What that achieved is another thing. That's why I'd always hold onto a car of ten k plus for 3 years minimum...

jsd1004

If you want a spin in one of my cars send me a PM. My Lotus (340r) and Corvette (C2 big block) are both sold but you can have a spin in the tesla or i8 if you like. Im not a huge fan of the oil burners but there is a few.

jsd1004

Have absolutely nothing interesting at the moment. Might bring in a mad american muscle car. The P100d is cool too. Looking for suggestions

893bet

jsd1004 wrote: »

Have absolutely nothing interesting at the moment. Might bring in a mad american muscle car. The P100d is cool too. Looking for suggestions

I suggest you stop responding to the thread. You are not coming off very well.

Toyotafanboi

893bet wrote: »

I suggest you stop responding to the thread. You are not coming off very well.

I'd second that.

If you post again in this thread you will get a ban jsd1004.

There's an opportunity for a good discussion here.

pablo128

jsd1004 wrote: »

Yes I have lots of money. That is irrespective. Yes but 70% of all cars sold were diesel in the last 10 years. Now they are all blowing and they are meant to be saving people money.

Well in the last 10 years my 2 diesel cars never blew up.

I hope no-one is injured when they do explode in a ball of flames though.

Zoney

I was shopping for various diesel models all year (and even through last year) and can attest to the going prices having dropped significantly for the same age/model compared to the start of the year. I was looking at mainly people carriers, smax, galaxy, C4, Alhambra, scenic, as well as estates, superb, Mondeo, Passat.

Ended up getting a fully loaded 3 year old model really cheap, UK import but bought from a dealer here so even included his margin too. Really had been just running the old car longer until we found the perfect car roughly in our budget. I'd have preferred petrol for the smooth drive, we don't do big miles, but only diesel on offer really and we do mainly weekend drives so long enough to get good economy from the diesel, ridiculously low amount of fuel needed for the size of the vehicle.

Really really glad we didn't go for an ex demo model 171 scenic we looked at for twice the price with 4.9% PCP so finance cost too (similar spec except 1.6 engine rather than 2.0 we got with 2014 C4 Picasso, and no park assist either). Although Renault didn't help their case with the change to bench seat in middle row, and massive console behind the rear view mirror inhibiting forward view (compare to acres of uninhibited panoramic view with C4)

Looks like used car prices are going to fall through the floor. All those ex PCP Irish cars to shift too. Hard times ahead for dealers here or anyone who bought new in the last few years (only gmfv or lower if there's mileage/wear).

R.O.R

Brexit.

That's the reason for the more or less "collapse" of used car values over the past year.

Started happening shortly after Brexit was announced, but really started to show it's ugly face around March this year and there has been a huge slide in used car values - especially the more Premium vehicles like Audi/BMW - large amounts of them coming in from the UK with cheap sterling, which means anyone's current car is only worth around €500 more than it costs to land one from the UK.

carsfan2

I’ve a bmw on pcp that 18 months through the 3 year term was given a value last month of only 6k more than gfv. Dealer admitted values have collapsed. However their asking prices haven’t...
I’m half thinking that if sterling continues the way it is, I will garage the car when I hit mileage allowance and bring in another car from the uk and hand back the current car at end of term. I reckon I will be well ahead of buying from an Irish dealer.

bazz26

R.O.R wrote: »

Brexit.

That's the reason for the more or less "collapse" of used car values over the past year.

Started happening shortly after Brexit was announced, but really started to show it's ugly face around March this year and there has been a huge slide in used car values - especially the more Premium vehicles like Audi/BMW - large amounts of them coming in from the UK with cheap sterling, which means anyone's current car is only worth around €500 more than it costs to land one from the UK.

BMW/Audi dealers selling UK stock don't seem to know or want to know that given the money they are asking for theirs. They value their used stock at pre Brexit Irish prices but value your trade-in at post Brexit UK prices.

If Brexit and weak sterling has showed us anything it's that post tax prices of brand new cars here are too high. We are paying too much for our new cars here which over inflated used prices here for years. Now that used prices are weaker and closer to UK used prices it really shows the massive amount of tax we pay on them.

bbbbb

DonalB1 wrote: »

Hi,

I bought a 08 A5 in January this year......... What am i missing?

Wasn’t there a “new shape” a5 during the year?
Makes old look older when this happens and can hit values

Idbatterim

I’ve a bmw on pcp that 18 months through the 3 year term was given a value last month of only 6k more than gfv. Dealer admitted values have collapsed. However their asking prices haven’t...
I’m half thinking that if sterling continues the way it is, I will garage the car when I hit mileage allowance and bring in another car from the uk and hand back the current car at end of term. I reckon I will be well ahead of buying from an Irish dealer.

ok its the hit sterling took, the relative cheap VRT as most are low emissions AND AND the bloody ridiculous price gouging that the "premium" brands do here v the uk, BMW certainly do anyway!

ok took the popular bmw range and cars. £26,800 = E29,300 for BMW 318i SE Saloon £36,000 = E40,500 for the 520i SE saloon. they are the cheapest for that model. Rights its E39,000 and E53,000 for the equivalent 3 and 5 series here. of course you would have to pay vrt and vat if I am not mistaken if you bring them in brand new. also getting them from there to here, might

Wailin

jsd1004 wrote: »

If it was a performance petrol model it might be desirable but I presume it is a diesel and an old or indeed any diesel is just a liability at the moment.

Edit: sorry just saw the mod warning