Advice - when to trade/change.

Mr. Larson

Last year I bought a second hand 2002 car with 23,000 miles, one owner, f.s.h. It's just over 1 year later and I now have done 22,000 miles, so it's now45,000 miles. So the car has now 2 owners and 45,000 miles. The value has probably gone from 24k to something like 20k in my estimation over the year. I could probably get a quick sale at 20 or 21k.

I'm happy with the car but clueless about when it would be smart to change it or not. If I keep it, the value will probably continue to drop quite sharply as my annual milegage is fairly high (about 20k per year). Should I cut my losses now and change it or keep it for a few more years? I wouldn't be upgrading massively, I would need to find something for similar money as I paid last year.

I guess it's personal choice and there is no right or wrong answer - but curious as to what people would generally do. It's a 2.0l Low Pressure Turbo, I get ~29 MPG so I would be happy enough to change it for something a little more economical... I've had my fun .

What would you do?

unkel

Hard to say. Unless it's not a mainstream car, age does come into the equation hard and rough at some stage on the depreciation front

It's 5 years old now and you reckon it's worth €20k. Next year it might only be worth €15k, depending on the car. What is it?

I'll give you a fairly extreme example. My car ('96 BMW 735) cost the equivalent of about €120k new here. After 5 years it would have been worth about €30k. I bought it when it was 7 years old for €11k

unkel

Ah! It's a C70 coupe 2.0l T manual, ne c'est pas?

Sorry to bring bad news, but there's no chance you'll get €20k for it in a private sale

You'd do well to get €15k tbh. Leave it another year and it won't get you much more than €10k. After that, annual depreciation will be much, much lower if the car is kept in good condition

Your main point remains just as valid though - when to sell and buy something else? I suppose you should decide now(ish) if you want to take the massive depreciation hit and buy another car, or stick with your car until it is no more...

Mr. Larson

unkel wrote:

Ah! It's a C70 coupe 2.0l T manual, ne c'est pas?

Sorry to bring bad news, but there's no chance you'll get €20k for it in a private sale

...

Ouch! Yes you're right, not sure how you knew but anywhooo.

That doesn't surprise me to be honest. It's in good nick but looking on Carzone at similar models what your saying sounds possible. I guess it was a bad buy, in hindsight...? Unless I just keep it, which, to be honest, wouldn't be a problem for me at all. I do love it.

unkel

Jabberwocky wrote:

I guess it was a bad buy, in hindsight...?

No, I don't think so. You bought from a dealer with warranty and it looks like you paid the going rate

Jabberwocky wrote:

Unless I just keep it, which, to be honest, wouldn't be a problem for me at all. I do love it.

In that case, why worry? Keep it until it dies. It's a very nice and fairly rare car anyway. Personally, I'd prefer to drive a 10 year old worthless C70 to driving a brand new €25k Golf 1.4. I don't care about what my neighbours or any other peers think about the year in my reg



Sweet!

Mr. Larson

Thanks for the advice - makes sense, I guess I was just wondering if the depreciation was hitting as badly as that or if I still had time to offload before it got too extreme. So if I keep it till I dies, it will probably go on and on for years. How bad.

bazz26

Changing your car every year is a mugs game imo unless someone else is paying for it.

The only way to counter act depreciation is to hold on to the car longer so that depreciation eventually bottoms out. If the car is not costing you anything other than normal running costs then hold on to it. Otherwise your back in the same boat next year.

Cyrus

bazz26 wrote:

Changing your car every year is a mugs game imo unless someone else is paying for it.

The only way to counter act depreciation is to hold on to the car longer so that depreciation eventually bottoms out. If the car is not costing you anything other than normal running costs then hold on to it. Otherwise your back in the same boat next year.

have to disagree there what you mean is buying a new car every year is a mugs game, i change my car every 9-12 months with minimal depreciation loss, just need to be sensible in what you buy (plus i do very little mileage)

bazz26

Cyrus wrote:

have to disagree there what you mean is buying a new car every year is a mugs game, i change my car every 9-12 months with minimal depreciation loss, just need to be sensible in what you buy (plus i do very little mileage)

I think Cyrus your right but you are not buying run of the mill motors then. Plus from seeing photos of your cars you tend to actually spend alot of time detailing them and make they look better than when you bought them.

To be honest the OP sounds from his original thread though that the only reason he is thinking of trading up is to try and keep ahead of depreciation. I could be wrong but that's my take on it.

Yep I suppose it depends on what you buy and the market conditions at the time of when your selling.

BTW spot any replacement for the 530i yet?

Cyrus

to be honest i detail them for me not the prospective buyer but it helps when i goto sell to be fair most second hand cars in ireland can do with a little tlc!!

ill be going to the uk next year feb/march time and im currently thinking either a 330ci 03/04 alfa gt 3.2v6 04 or maybe a nice sports audi a4 quattro with lotsa toys

that could all change, ive had to promise to keep this car at least 10 months or the girlfriend will disown me !!