Depreciation!!!!!!!

[tweek]

I think we would all agree that buying a car is one of the most effective ways of losing money, soon as you drive a new car out of the showroom you lose approx 15% of the sale price. The only way IMHO to recoup some of the losses is to run the car into the ground i.e. if it has any value when you do part with it you're getting rid of it too early. Under the current climate selling high end cars like the RS, etc makes no sense at all, you get nailed on the trade-in and then lose more of the little you got back on the next one, ever decreasing circles.

[ARSEY4]

What will happen to new car prices in the future if the £ - € stays where it is? Do manufacturers just leave the list price or will they adjust it up to compensate for the reduction in Euros to pound. No such adjustment took place when they were creaming off of the UK and we had the highist list price on cars but now we are the pretty cheap will they increase to get more?
Personally I think once things have stabilised we may see a huge demand for 2nd hand cars, less people buting new as they have got their fingers burnt this time around, possible increase in list prices as mentioned above. Car manufacturers are cutting production already, less cars comming through the second hand market. NNot an economist just following the cycle ending with the total collapse of the new car industry and finally the introduction of a proper alternative fuelled car.

[PetrolDave]

In a recent interview the boss of Renault-Nissan said that he expected car sales to be very difficult in the first half of 2009 with lots of discounting, but that the situation would "normalise" in the second half of 2009.

Sounds like he expects prices to start going up later in the year.

[Merlot]

If anyone with an RS4 of any bodyshape (but with recaros not buckets) wants to go for some luxury instead, I have an 08 plate facelift A8 3.0tdi which a swap (+/- cash, havn't done any #'s) could be done on. Cheers

[PetrolDave]

Not my cup of tea - had one of those for 24 hours in June to ferry my Dad to his 90th birthday party in style. Nice smooth ride and economical, but so boring to drive no matter how sporting I tried to get it setup on the MMI.

[Marcus-RS4]

I liked the A8L 4.2D I was given when mine went in for DRC (again!). But not enough to swap it for good...

[NGS521]

The fall in prices will probably now put me in negative equity next year when the finance agreement runs out and the balloon payment is triggered. I intentionally went for a really conservative balloon payment to ensure this wouldn't happen, but that was before the credit crunch accelerated the depreciation. It just makes me intent on really enjoying the car for the next 18 months so that I get "value" from the outgoing.

Sounds like PCP so no worries about negative equity, just hand it back?

[djt]

The fall in prices will probably now put me in negative equity next year when the finance agreement runs out and the balloon payment is triggered. I intentionally went for a really conservative balloon payment to ensure this wouldn't happen, but that was before the credit crunch accelerated the depreciation. It just makes me intent on really enjoying the car for the next 18 months so that I get "value" from the outgoing.

Sounds like PCP so no worries about negative equity, just hand it back?

Could be lease purchase which is the same but the final amount isn't guaranteed.

[P_G]

Ditto, mine is lease purchase and I also went for a low baloon but to be honest I am in negative equity now and will be when the agreement finishes in 2 years but it was alwasy the intention to keep my RS beyond the final payment and have the cash in place to pay the balloon. All I will probably end up doing is financing the balloon and using the cash in something that produces better return.

[HYFR]

Dont think they'll actually rise again in price - think when times get better the prices just wont drop as quickly.

I think its just a case of when times do get better you'll be able to put your car on the market and it will actually sell, as opposed to now where you need to put it like £5k below normal to sell it, unless your lucky.

[GBrownlow]

Simply supply and demand and when new RS5 hits market next year the supply of RS4 will go up and demand probably drop as people swap into latest RS ( lifestyle permitting of course ). Mind you by then the RS4 will be at a bargain price if you get a low mileage well looked after one like most of ours.

[aidanjaye]

So the overall picture for new buyers into RS4s is wait a bit as prices almost certainly will drop further?

On another note..are high mileage RS4s really worth 2K less than low ones (I'm only talking the difference between 20 and 40 k miles)

[david7m]

So the overall picture for new buyers into RS4s is wait a bit as prices almost certainly will drop further?

Surely all cars are like that I'd like to see any 2006 car today, that is worth the same amount in 12 months time

Dave

[Adam]

:
17.5% OF SAY 50K = for round numbers is about 8-9k so there you are nearer 40k before you have driven it off the forecourt ....

Sorry but VAT is a complete red herring, no car "loses" the VAT amount in value as soon as the car is bought. The value erosion is simply the perceived premium associated with having a brand new car and having only your name on the V5 (assuming spec is what you want).

A new car that costs 50k is worth 50k regardless of who receives that 50k (manufacturer, dealer or taxman), if the value percieved in having a brand new car of that type as oppsed to an as-new car from a dealer with 1k on the clock is 3k, the nearly new car is worth 47k

If the dealer margin is say 5k, the first buyer may lose 8k (3k new car premium + dealer margin) and that might be close to the VAT on a new car but that is purely coincidence.

[quattrokid1]

just passsing glasgow audi last night.... so popped in... in the showroom was a B7 RS4 with 14000 miles on it for £36k and an 08 new RS6 for £68k!!!!!!