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How and why?

This must be the question that bugs most of us. If my new car loses 1/3 of it's value in 1 year how can it have possibly been worth what I paid for it in the first place?

I have a solution to keep the residual value of my RS6 high but I just have to clear it with my bank manager.

The solution involves buying every RS6 that comes up for sale. Storing them in a massive warehouse until random press releases create massive demand for the unavailable vehicle then sell them at a trickle.

OK so it's a long shot, but have you got any better ideas?

Even my 'rock solid residual' Saab cabriolet lost £9k in it's first year. How crap is that!

My RS6 is just coming up for it's first birthday. Do I bale out now or keep it for 3 years and try to sell it then? I don't think I'd want to own/run one outside the warranty.

I dont buy brand new cars anymore and i make sure i dont take any finance either.
I prefer to wait untill a car i like the look of has taken its biggest losses ie first 3 years of its life.

I bought my RS4 used when it was 2 1/2 years old with 15 months warrenty,i have owned the car for around 14 months and if i sold today i would only lose,at most £2500.

Downside to the above is having to wait for the cars you want to become available ie new RS4 avant released spring 2006 means if i want one and if its any good,i will have to wait till at least Autumn 2007 to allow prices to soften.

Look at the BMW CSL price collapse £60k new only 422 taken into the UK and they are fetching £38k in less than 2 years.

The new RS4 will probably drop like a stone as well.

Might be better of keeping the RS6 for another 2 years and enjoying it....its a great car
Cheers fc

I agree the first year is the worst and using finance makes it worse,percentage wise these cars hold up well its just that the figures are unfortunately so large,you have suffered the worst bit maybe keep it?buying at 3yrs and selling at 5yrs is usually a good time to get on and off the depreciation curve.

Sorry, but how does having finance make depreciation worse ?

CarlT wrote:Sorry, but how does having finance make depreciation worse ?

Because you've paid the price AND interest ?

I read very recently that pre owned prices are at their lowest ever, presumably for any/most makes and models.