Depreciation

Every model we sell has gone well past the bottom of its depreciation curve and is climbing nicely up the other side. We were reminded of this by an article in the Autocar 22 September 2010 issue, highlighting the crippling depreciation suffered by new car buyers.
They quoted the example of a basic Vauxhall Zafira 1.6i, which depreciates by £56 per day, and an Audi A8 4.2 TDi Quattro SE which drops an eye watering £185 per day; more than 50% of its value in six months!

In the same Autocar issue, in a report on their long term test Lexus RX450h hybrid 4×4, they revealed that the total actual depreciation of their car over their 12 month period of ownership was £9040. Set against the 15,000 miles they covered this works out at over 60p per mile. That’s before you even think about putting fuel in it!

Having done all their depreciation in the hands of the first owners, the Mercedes of our favoured era are unlikely to lose much value from now on, and many models have been showing a definite upward trend in recent years. Over several years, unless you cover a huge mileage, you may break even or even show a small profit.

Our own 1965 220SEb Coupe

 

 

 

 

 

 

Return to Ownership Potential

Comments are closed.