M3 LR Nearly New - Residual Values

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Oh great, another thread on residuals

Very few cars are immune from such depreciation. Fact of life that you lose most in the early period. If you don’t like this buy a 2 or 3 year old car. Otherwise suck it up.

Quite. It’s a car, not an investment.

Anything greater than zero when I sell and I’ll be happy. That’ll be less than if I had leased at the time.

 

[AndyFov]

Looking at the SR+RWD, if you take a new one on a contract hire basis, you can rent for 4yrs at £664 per month. That's £31872 spent just to hire.

Or you can buy interest free on HP over 6yrs at £594 per month. 4yrs in you've spent £3360 less, and what you've got parked on your drive has to be worth more than the next two year's rent? £14256?

 

[UrbanSplash]

Just been testing the market with my 12 month old Model Y LR, 3300 miles like new
WBAC £34600, M/Way no price, Tesla trade in £33000
and my 2022 Kia Soul Maxx 9000 miles 14months old new £35000
WBAC £19000, Mway £18400.
These are pretty competitive with similar ICE cars.
Looks like Tesla and Kia can wait for my business!

Even Tesla have no faith in the value of their cars… Motorway bidders won’t even touch them. All these people saying ‘it’s not an investment’ are so full of *sugar*. I’ve never owned a car that’s difficult to sell second hand.

 

[HenryT]

Looking at the SR+RWD, if you take a new one on a contract hire basis, you can rent for 4yrs at £664 per month. That's £31872 spent just to hire.

Or you can buy interest free on HP over 6yrs at £594 per month. 4yrs in you've spent £3360 less, and what you've got parked on your drive has to be worth more than the next two year's rent? £14256?

Is there no deposit/initial payment in either calculation?

Scratch that - just looked online - no deposit.

So the gamble is will a 6 year old M3 be worth more of less than £14,256.

 

[AndyFov]

Is there no deposit/initial payment in either calculation?

Scratch that - just looked online - no deposit.

 

[AndyFov]

So the gamble is will a 6 year old M3 be worth more of less than £14,256.

No, if it's worth more than £10896 at 4yrs you're better off than you would be on contract hire.

On contract hire you pay 48x £664 ( £31872) and have no equity.

On HP you've paid £28512. You've got £14256 left to pay, but you've spent £3360 less than the contract hire example above, So, sell the car for just £11k, find £3256 to pay off the HP balance and you're still winning.

 

[HenryT]

No, if it's worth more than £10896 at 4yrs you're better off than you would be on contract hire.

On contract hire you pay 48x £664 ( £31872) and have no equity.

On HP you've paid £28512. You've got £14256 left to pay, but you've spent £3360 less than the contract hire example above, So, sell the car for just £11k, find £3256 to pay off the HP balance and you're still winning.

Yep, that works.

 

[DoricJim]

Even Tesla have no faith in the value of their cars… Motorway bidders won’t even touch them. All these people saying ‘it’s not an investment’ are so full of *sugar*. I’ve never owned a car that’s difficult to sell second hand.

I think you are one full of *sugar* and being a drama queen

Did a quick check with WBAC and Cazoo for my almost 2y old M3LR with 16k on the clock and got pretty much 30k from each. About 40% depreciation over that time seems right to me. E.g.

It’s never been easier to sell any model of car compared to a few years back. Used to be trade in or private and that was it.

So long as you are realistic with the price then it will sell and you can have the money in your bank within 5 minutes of handing over the keys..