[chris_gla]

Went to dealer this week thinking of changing and was slightly shocked by residual value.

Car new was £37k (F30 320d ed with about £14k extras), I bought under a year old for £23k, now it's 3 year old they're quoting £13k!!!

I know the extras are mostly lost, but even so £5k per annum in year 2 and 3 seems high for the car. I'd expect this kind of depreciation on a high model or 6 series, etc- but not so much on a boggo family German car...

What sort of depreciation are others seeing?

[Chompers]

That's about right and is only going to get worse with the high levels of discounting that is going on at the moment. 3 series depreciate around £350 a month on average. Over spec'ing a car from new can be very costly up front and you won't get that money back, dealers work to CAP/Glasses guide prices and options add little or no extra value to a used example. What they do add is saleability.

[Beancounter_74]

Seems reasonable. You bought at 'retail' and are being quoted trade (bid offer spread).

To give you some comfort (though not much) my RRSport lost £1,100 a month for the two years I had it

[robbiep]

You also don't say what sort of mileage you've done in the 2 years you've owned it. For all we know, they might be quoting you on a 20k mile car, or an 80k one.

[Chompers]

OP, am I right on thinking you car is a Efficient Dynamics model? This model is squarely aimed at the the fleet market, so adding £14k of options from new is just stupid. Whole point of that car is low fuel consumption and low BIK. I wonder what the extra weight of those options added up to? Anyway MSport models are the favoured model here in the UK and this also has an influence on values.

[chris_gla]

Originally Posted by Chompers

OP, am I right on thinking you car is a Efficient Dynamics model? This model is squarely aimed at the the fleet market, so adding £14k of options from new is just stupid. Whole point of that car is low fuel consumption and low BIK. I wonder what the extra weight of those options added up to? Anyway MSport models are the favoured model here in the UK and this also has an influence on values.

Yes, I wouldn't have spent that on extras but the car was fully spec'd for Olympics. I does have some benefit as road tax is only £20, insurance under £180- and the balloon sized tyres give a better ride unless you've got the adaptive suspension!

Car now has 25k miles.

[FSE23]

£5k a year doesn't seem to be high depreciation at all. Did you expect to break even after 2 years of driving?

[uzi9mm]

Originally Posted by chris_gla

Went to dealer this week thinking of changing and was slightly shocked by residual value.

Car new was £37k (F30 320d ed with about £14k extras), I bought under a year old for £23k, now it's 3 year old they're quoting £13k!!!

I know the extras are mostly lost, but even so £5k per annum in year 2 and 3 seems high for the car. I'd expect this kind of depreciation on a high model or 6 series, etc- but not so much on a boggo family German car...

What sort of depreciation are others seeing?

That is high depreciation for a prestige car but a 3 series is now a mass produced "Ford mondeo".

Unless your buying a I8 expect big depreciations.

I`m in the same situation, was looking to move to a 330d but thought not worth the 9K to change figure, will wait until the gap closes. I`m talking about same year car but different model change.

[dazzapb]

Thats not bad IMO, as mentioned the 3 sells many especially in the 2.0d form. Its just outside the top 10 i think now.

No problem with that, Merc and Audi sell a shed loads of the rival C and A4 but it will hurt future value. People want small cars now, the fiesta and corsa sell so many, the huge mondeo is way down the list now.

My friend lost 17k on a volvo in 9 months!

[dazzapb]

sorry a bit OT, big family cars have gone! didn't realise how many SUV things are sold! A3 is the new Mondeo/3 series!


2014:
Ford Fiesta 123,747
Ford Focus 78,944
Vauxhall Corsa 73,709
Volkswagen Golf 69,787
Vauxhall Astra 54,753
Nissan Qashqai 47,154
Volkswagen Polo 44,815
Audi A3 42,949
Fiat 500 41,297
Nissan Juke 36,125

[HighlandPete]

Originally Posted by Chompers

That's about right and is only going to get worse with the high levels of discounting that is going on at the moment. 3 series depreciate around £350 a month on average. Over spec'ing a car from new can be very costly up front and you won't get that money back, dealers work to CAP/Glasses guide prices and options add little or no extra value to a used example. What they do add is saleability.

I also see this as an on going trend. Residuals are also bound to fall as the market gets even more saturated with 3-series.

We all like our well optioned examples, but we will take a hit however good the deal (new or nearly new) we get into.

I hate to think what my car's depreciation would be like, if I hadn't got into it for 40% off list at 6k miles. £15k's worth of options have to be wiped off in the first few years.

Only really makes sense to option up a car if we do intent to keep it for a good few years and enjoy options, or be prepared to take the hit and let the next user get the financial benefit of a well optioned used car.

HighlandPete

[....,,,,..,,..]

Originally Posted by HighlandPete

I also see this as an on going trend. Residuals are also bound to fall as the market gets even more saturated with 3-series.

We all like our well optioned examples, but we will take a hit however good the deal (new or nearly new) we get into.

I hate to think what my car's depreciation would be like, if I hadn't got into it for 40% off list at 6k miles. £15k's worth of options have to be wiped off in the first few years.

Only really makes sense to option up a car if we do intent to keep it for a good few years and enjoy options, or be prepared to take the hit and let the next user get the financial benefit of a well optioned used car.

HighlandPete

Yes I can see this becoming a common thread topic over next 12 months as initial F3x buyers come to trade in etc.

We can't be crowing about great discounts and then not expect to be Tango'd at the other end.

Admittedly it does turn some pcp deals in to pretty much a lease deal as people just hand them back due to negative equity.

[Proftinkerpot]

If it's a clean car it should make more selling privately with low miles. You then will have cash to negotiate with your dealer. Your well specced car will help it sell to someone in the market for a brand quality car with low miles etc. Basic 320d rep mobiles will typically have higher miles and seen little care and no extras so yours should stand out.

[Chompers]

Sadly as BMW push for greater market share, residuals will fall. It will be very important for buyers to spec cars with caution. BMW have helped a little with the 'pack' options but most options are money down the drain as soon as the cars off the forecourt. Used buys can be good as HighlandPete suggests. My 320d that I pick up on Friday was also just over 40% off list 10 months old and includes 4 years of service pack. When you add in £1k over allowance 1 years tax, rear cargo liner and 4x rubber mats, there was no way a new car was going to tempt me. All this said, I am under no illusion that the continued discounting of new will put huge pressure on depreciation and will grip my car as it will every other.

[Kal101]

Had the same hit with my 2012 sport line 320d. Sold it privately to reduce the hit.

Going to keep this one for longer to minimise the hit. Suppose that's the down side of leaving pcp early.

[mgarvey]

Having the same problem - my 318d Sport, which wasn't too heavily specced and cost £29k new in Aug 2012, is now worth about £12k-£13k part-ex.

Going to try and sell it privately once my summer wheels are back on, and if I have no luck I'm VT'ing it.

My next car will be leased!

[uzi9mm]

Originally Posted by Kal27

Had the same hit with my 2012 sport line 320d. Sold it privately to reduce the hit.

Going to keep this one for longer to minimise the hit. Suppose that's the down side of leaving pcp early.

What did you get for it out of interest? As a comparison to dealers trade in value.

[Msportman]

It doesn't matter if it's an Msport car with options they all crash in value.

I will never by a near new car again especially a mainstream car PCP or cash buying it's a total waste of money to throw away when trading on or selling privately.

Mines on Autotrader right now although my missus wants to keep because of the hit in depreciation. It was pre registered car with 4k on the clock and I bought it in June and it's now done 11k. I've lost 4k since June and still can't shift it on even though it's quite well spe'd.

I hate loosing this type of money and don't agree on renting like PCP's are designed to do....dead money.

I will look to retire early in a couple of years and will choose a slow burner or even consider a 3-4 yr old M3/4 where a sizeable chunk of depreciation will have already occurred.

I should have kept the old A4 in hindsight and ran it into the ground rather than buy a money losing F31Xdrive. I thought BMW's were better on depreciation but they are no better than Ford's!

I suspect 335d owners who spec there cars up to over 40-45 k must weep in 3 yrs time when selling on or you work out your monthly payments for renting the car.

[Mattyk]

Originally Posted by Msportman

It doesn't matter if it's an Msport car with options they all crash in value.

I will never by a near new car again especially a mainstream car PCP or cash buying it's a total waste of money to throw away when trading on or selling privately.

Mines on Autotrader right now although my missus wants to keep because of the hit in depreciation. It was pre registered car with 4k on the clock and I bought it in June and it's now done 11k. I've lost 4k since June and still can't shift it on even though it's quite well spe'd.

I hate loosing this type of money and don't agree on renting like PCP's are designed to do....dead money.

I will look to retire early in a couple of years and will choose a slow burner or even consider a 3-4 yr old M3/4 where a sizeable chunk of depreciation will have already occurred.

I should have kept the old A4 in hindsight and ran it into the ground rather than buy a money losing F31Xdrive. I thought BMW's were better on depreciation but they are no better than Ford's!

I suspect 335d owners who spec there cars up to over 40-45 k must weep in 3 yrs time when selling on or you work out your monthly payments for renting the car.

Isn't that the point of a pcp though, we are renting, we know what it costs and we get a new car every 3-4 years. No more worrying about depreciation!

Granted interest rates are low but my cash is sat in the bank if I ever need it, cash buyers put it in a car that depreciates, can break, can be stolen etc.

I know what I pay and have a opportunity to try to sell for profit at the end or simply hand back.

Cash buyers have no option to sell or have a dealer upset them further.

Each to their own but with depreciation cash buying is just renting but with unknown rental costs?

For me, even if I had mountains of cash I would still pcp, better to keep your cash and use someone else's imho.

[Chris Peacock]

The majority of new cars are worth approx 50% at the 3 year point disregarding most options, as has been said they contribute very little to your sale price.

We dipped our toe into PCP for the first time in 2013 and will be released of it next July where we will pay the GFV and keep the car, it's not sat easy for me having been a cash buyer for years.

Car marketing, busy lifestyles looking for convenience, low interest rates has exploded the PCP/lease car buying market. There are now so many new cars on the road it's no longer special like it used to be.

Always stings though when you get to the point where you have paid x amount for however many years and your expectations of your cars worth are bitterly disappointed.

[robwils]

Originally Posted by Mattyk

Isn't that the point of a pcp though, we are renting, we know what it costs and we get a new car every 3-4 years. No more worrying about depreciation!

Granted interest rates are low but my cash is sat in the bank if I ever need it, cash buyers put it in a car that depreciates, can break, can be stolen etc.

I know what I pay and have a opportunity to try to sell for profit at the end or simply hand back.

Cash buyers have no option to sell or have a dealer upset them further.

Each to their own but with depreciation cash buying is just renting but with unknown rental costs?

For me, even if I had mountains of cash I would still pcp, better to keep your cash and use someone else's imho.

Your paying for the depreciation any way even on pcp. The dealers simply want you to get used to paying however many hundreds a month and then swap over to next car - and then maybe just up the payment as its 'only £100 more for this one sir'. The longer you keep a car the more average out those early years are, but not sure it's by much. 50 % in first three years, is it 50% again ? So overall 75% of initial ?

I too was horrified when I got a value on my F30 after 12 months, I've lost more on this car in 2 years than the previous 3 in 10 years.

There's not much you can do other than get discounts - sell privately at the end, choose less options? If you think that might help.

belive me I've looked into this a lot, but still find myself looking at the 435GC x drive as my next car, but I do wonder if it's worth it to me.

I was even looking at a used M6 the other day

[RalphyBMW]

Originally Posted by Msportman

Mines on Autotrader right now although my missus wants to keep because of the hit in depreciation. It was pre registered car with 4k on the clock and I bought it in June and it's now done 11k. I've lost 4k since June and still can't shift it on even though it's quite well spe'd.

Strip out the dealer margin of circa £3k and you've actually only lost £1k in 10 months; possibly more depending upon how much you actually get for it.

Originally Posted by Msportman

I suspect 335d owners who spec there cars up to over 40-45 k must weep in 3 yrs time when selling on or you work out your monthly payments for renting the car.

I suspect very few 335d owners will have paid more than £40k, and following an initial drop of around £5k, these cars will depreciate much more steadily, probably circa £500/m.