Trade in values for 1yr old cars

[ck70]

What is a reasonable amount to loss on a car in 1 yr, in terms of trade in value against a similar new car? Would 25% seem reasonable? Its my first new car and i naively thought that the loss would have been less than 20%. Its an Opel Zafira and after paying 33k last yr i'm only offered 25k as a trade in. Would anyone know which garages give the best trade in allowances? Thanks.

 

[demoivre]

Have a look at the What's it worth section in to get an idea or alternatively look at the prices of second hand Zafiras in carzone.ie - the highest priced 05 one in there is €24995 though yours may be a higher spec./ lower mileage etc.

 

[RS2K]

What is a reasonable amount to loss on a car in 1 yr, in terms of trade in value against a similar new car? Would 25% seem reasonable? Its my first new car and i naively thought that the loss would have been less than 20%. Its an Opel Zafira and after paying 33k last yr i'm only offered 25k as a trade in. Would anyone know which garages give the best trade in allowances? Thanks.

Trade in value is deceptive, as it's against the full list price of the new car, not it's straight cash value.

 

[Eurofan]

What is a reasonable amount to loss on a car in 1 yr, in terms of trade in value against a similar new car? Would 25% seem reasonable? Its my first new car and i naively thought that the loss would have been less than 20%. Its an Opel Zafira and after paying 33k last yr i'm only offered 25k as a trade in. Would anyone know which garages give the best trade in allowances? Thanks.

I doubt you'll do a helluva lot better to be honest. An hour or so on the phone calling around the various dealers will pay dividends though. Don't just focus on city dealers as often more rural garages are a bit keener.

Seriously though, €8k!! Is there any special reason you need to trade in so soon? Why not just hold onto it for a good few years..

 

[finbar]

If you buy the same car new price cost 33,000
with no trade in you normally get around 1,500 off for cash.
So the garage are in fact only giving you 23,500 for your car trading it
in.your losing the no trade in discount + 8000 in depreciation.
Try and sell it privately, why are you selling a car after only 1 year?

 

[ck70]

Thanks for the all the replies. After checking with a few dealers it seems that 25k is the best i'm going to get. The only reason i'm thinking of updating is that if i update every year it cuts out the cost of service, tyres etc and it seems easier to pay a low amount every year rather than keep the car for 3 years and then have to pay c.20k to update. I know it pans out more or less the same at the end of the day. Will have to have a good think about this one.

 

[Satanta]

I know it pans out more or less the same at the end of the day. Will have to have a good think about this one.

You think? I'd have a closer look at your figures.

The heaviest loss in car value is in the 10 seconds it takes to drive it out the gate on purchase. As the car gets a little older the depreciation slows down (a little). The potential savings on tyres and servicing will be wiped out due to the losses made early on.

For this plan to work you really need to look at picking up second hand cars still under warrenty. You miss out on the heaviest depreciation (letting someone else take the hit) and still own a car covered for any mechanical work needed. If you can pick up a 1 y old car with a 3 year warrenty it means you can drive it for 2 years without having to worry about the parts cost (if that is the part that worries you). You can then sell it on, having missed the ~15% to 20% drop of it being bran new to second hand and instead take the smaller loss of it being a 3 year old car instead of a 1 year old.

 

[rabbit]

I remember once paying £ 18,000 for a nice brand new Japanese car, and taking it to a dealer in Dublin later that same year - with only about 8 k on the clock + in as new condition - who only offered 12 k for it as a trade in. Chancers !

 

[Eurofan]

The only reason i'm thinking of updating is that if i update every year it cuts out the cost

As Santanta points out your theories here are way off. The only reason to get a new car every year is if that new number plate is important to you. In reality it will cost you many thousands extra just to do that.

Personally i think there's far too much ego involved in car ownership (or rather number plate ownership) today and it means far too much to people.

The sweet spot in depreciation terms is buying a car between 3-5 years old. Buy right and servicing/running costs will be a fraction of the depreciation hit you take on buying a new car every year. Unless there's a practical reason you need to change cars i'd keep the one you have for a minimum of 5 years.

Of course then the neighbours won't be so impressed at the new plate every year.....