Depreciation, depreciation, depreciation


In November 2006 MTI went shopping. We spent a not inconsiderable £350,750 on 18 brand new cars ranging from the popular Mini Cooper to the not so popular Renault Laguna. We thought it might be interesting, after the sharp decline in residual values that occurred in late 2008, to re-visit our (non) investment and see what our cars are worth now.
Now, of course, depreciation is a fact of life when buying a motor car and this is just a bit of fun and perhaps not that scientific but, as you might imagine some cars fared better than others. Our top performer was the Mini closely followed by the Honda Civic (currently being stock-piled at all major ports) and the ever dependable VW Golf and worst by a mile the truly dreadful Renault Laguna.
So in just two years and clocking up average miles our cars are now worth collectively just £129,050 and were we to cash in our chips we would have lost a whopping £221,700 (ouch!)

What does all this tell us (apart from how painful depreciation can be)? Well it would lead us to conclude that maybe opting for a Corsa, Civic, Golf or Mini might be the wise option if you are likely to want to sell in the next 2 years. Other than that, as always do your research and factor in the cost of depreciation along with the running costs of the vehicle.

Oh and maybe don’t buy a new Renault Laguna!

November 2007
Make
Model
Version
List 06/06
Nov
07
Depr’
amount
Depr’

%
BMW Mini Cooper Chili pk 14,500 10,500 4,000
28
Honda Civic 1.8 vtec SE 5dr 14,500 10,250 4,250
29
VW Golf 1.4 s 5dr 12,750 7,800 4,950
39
Vauxhaul Corsa 1.0 life 3dr 9,000 5,800 3,200
36
BMW 3 Series 318 es auto 22,000 14,000 8,000
36
BMW X5 3.0d sport 43,000 28,000 15,000
35
Land Rover Discovery  2.7 TD HSE 44,000 27,500 16,500
38
Ford Ka style 1.3 3dr 7,500 3,500 4,000
53
Toyota Avensis 2.0 d4d T2 4dr 15,700 8,000 7,700
49
Ford Focus 1.6 LX 5dr 13,600 7,000 6,600
49
Peugeot 307 1.6 SW HDI SE 16,750 9,000 7,750
46
Fiat Punto 1.2 Active 5dr 8,250 3,800 4,450
54
Nissan Micra 1.2 5dr SE 10,350 4,700 5,650
55
Vauxhaul Zafira 1.9 tdi life 17,000 8,500 8,500
50
Vauxhaul Astra 1.4 Club 5dr 13,700 6,000 7,700
56
BMW 7 Series 730 se auto 53,500 25,500 28,000
52
Vauxhaul Vectra 1.8 life 5dr 16,250 7,500 8,750
54
Renault Laguna 2.0 Privilege 5dr 18,400 7,000 11,400
62
November 2008
Make
Model
Version

Nov
08

Total value lost
Depr’
%
BMW Mini Cooper Chili pk 7,500
7,000
48
Honda Civic 1.8 vtec SE 5dr 7,250
7,250
50
VW Golf 1.4 s 5dr 6,000
6,750
53
Vauxhaul Corsa 1.0 life 3dr 4,200
4,800
53
BMW 3 Series 318 es auto 10,000
12,000
55
BMW X5 3.0d sport 18,000
25,000
58
Land Rover Discovery  2.7 TD HSE 18,000
26,000
59
Ford Ka style 1.3 3dr 2,800
4,700
63
Toyota Avensis 2.0 d4d T2 4dr 5,500
10,200
65
Ford Focus 1.6 LX 5dr 4,750
8,850
65
Peugeot 307 1.6 SW HDI SE 5,750
11,000
66
Fiat Punto 1.2 Active 5dr 2,800
5,450
66
Nissan Micra 1.2 5dr SE 3,500
6,850
66
Vauxhaul Zafira 1.9 tdi life 5,500
11,500
68
Vauxhaul Astra 1.4 Club 5dr 4,000
9,700
71
BMW 7 Series 730 se auto 15,500
38,000
71
Vauxhaul Vectra 1.8 life 5dr 4,000
12,250
75
Renault Laguna 2.0 Privilege 5dr 4,000
14,400
78

 


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