depreciation /used car buying mismatch

R

rduane

Registered User
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Hi all,

I am a newbie in the car buying game. What i cannot understand is the following:

According to most surveys, car is only worth 40 percent of list price after three years ( i presume this is trade-in value to the dealer). I have no experience of buying new car and trading in after three years so i take this as gospel.

I am looking to buy a three year old mazda3 (but it is the same for ford focus and opel astra). The prices that i am being quoted both privately/dealers on carzone.ie, buyandsell.ie, papers, etc are 14,000-15,000 euros average.
The list price is 21,000 for the base model which i am looking at.
This percentage is approximately 70 percent...
Am i missing something here? Surely dealers are not turning around cars and making a 30 percent profit?
How much of a discount on these asking prices should i be expecting?

With this in mind, The other option i am looking at is buying a new toyota corolla and trading in every three years.. has anybody any experience of what type of trade-ins you would get from toyota on trading every three years?

Thanks,
R
 
Private sellers are pitching prices around the same levels as dealers do, without offering trade in facilities, warranties, and other services.

Unless a car has a factory warranty (some newer ones do) the private price shoud be less than a dealers. maybe 10%+ .A dealer will also offer a cash (i.e. non trade in) discount.

Retained values vary a bit too. Some brands are good and some useless. Toyota aren't bad at all. French and italin cars tend to be poorer.

Either way cars are a money pit.

To minimise your losses you should sell your own car privately, and then buy a lightly used car (with makers warranty) privately too. You'll avoid the dealers cut by doing so but it aint easy.

Buying new is for most financial suicide.
 
A toyota corolla 1.4Diesel would be one of the best cars to buy new in terms of depreciation, if you want to go down that route.
Buying new though is crazy but at least you get the car of your choice.
 
RS2K said:
Unless a car has a factory warranty (some newer ones do) the private price shoud be less than a dealers. maybe 10%+ .A dealer will also offer a cash (i.e. non trade in) discount.
Click to expand...
I'm planning to sell my car privately (2002 Octavia). So the best way for me to price this is to look through the dealership (CBG, Carzone prices) for a similar car and then drop my price to 10% below these?
 
Squonk said:
I'm planning to sell my car privately (2002 Octavia). So the best way for me to price this is to look through the dealership (CBG, Carzone prices) for a similar car and then drop my price to 10% below these?
Click to expand...
thats what I did and it sold in 2 days

also, give it the best cleaning its ever had and a good wax
take plenty decent pictures from all angles and a few inside aswell and its no harm if you find a nic place to take them also

best of luck
 
Squonk said:
I'm planning to sell my car privately (2002 Octavia). So the best way for me to price this is to look through the dealership (CBG, Carzone prices) for a similar car and then drop my price to 10% below these?
Click to expand...

Yes.

I sold a 10 month old performance car a couple of weeks ago privately. It was the lowest miles example about and was in perfect condition, with a factory warranty.

I got a good price for it.
 
The new MINI has very low depreciation, particularly the Cooper and Cooper S models.
 
Thanks all for the very useful replies.

Maybe this is covered elswehere but what type of discount (approximately) should i expect from dealers on used cars for cash upfront? 10 percent?

What type of depreciation does a 1.4D toyota corolla have after say three years?

Tx again,
R
 
rduane said:
Thanks all for the very useful replies.

Maybe this is covered elswehere but what type of discount (approximately) should i expect from dealers on used cars for cash upfront? 10 percent?

What type of depreciation does a 1.4D toyota corolla have after say three years?

Tx again,
R
Click to expand...
I would guess you could get as much as 8% from Toyota...the 1.4 D4D though are hard to get so the chance of a better discount would be more difficult.
I would say a 1.4D4D corolla would only lose 2-3k per year
 
It'll be worth maybe 50% of the new cash price after 3 years.

It'll be pretty reliable, and light on fuel, but will be rather boring to drive.
 
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