Faitha 2 B

Hi all,

I cannot believe the pi*h poor residual value on my 2005 WRX STi Impreza - I recently have agreed a trade in price with a BMW dealer after buying a new X5 - & what a kicking I'm taking.

The worst thing is my car has only got 1k miles on the clock!! Yep stupid I hear you say & I'd now agree as I reckon if there were 8 or 10k on it it would make no difference to the dealers poor offer.

I'd much rather see it go to a private buyer for trade money as opposed to the dealer who will rip another poor punter off, just as he's doing to me.

If your interested in cutting out the middle man (car dealer that is), then Ive posted a thread on the general for sale site with full details.

Anybody else experienced similar or possibly the opposite?

Regards, Faitha 2 B.

davedipster

You loose the VAT to start with...
So a £26,000 sti will be worth 26000*.825 = £21450 as you put the key in.
Take into account the dealer mark-up on trade-ins and the fact that its a 2nd hand car now...
Let me guess 19k trade-in?

dipster

dexter

Mate, I`m in much the same position as you, in that I`ve bought a new WRX earlier this year, and found out last week (after driving one) that I should`ve bought an STi instead.

Unfortunately, the mega-bucks I will lose on mine are preventing me from changing so soon.

(I have read your other thread BTW, and I`m aware that you`re looking to sell for sensible reasons, and not just plain speed-greed like me. )

russell hayward

The VAT on £26,000 is 7/47th's, you can't just take 17.5% off, as the VAT is already included, so u have to do 100/117.5 x £26,000= £22,127.

Anyway, you don't lose this money straight away, if that is the case how have I sold two cars in the past for more than I paid for them new?

Its simply market driven. Prices for trade in reflect the demand and the gready dealer's need to make profit.

BMW's are no better. You may notice many BMW dealer's second hand car prices seem to have increased in the last few months, due to the fact new car sales are not going well. Doesn't mean they offer decent trade-ins though, especially on BMW's !

pslewis

But it's actually a 2004 car?? On a 54 plate??

When you say 2005 - what does that mean??

Clearly, as we near 2006 a 2004 car is going to look 2 years old .... next month it is 1 year old, in fact.

£19k Part Ex. therefore seems quite reasonable .... are you getting a chunk off the list price of the X5?

Pete

Danny B

If you are advertising it for £19k to the public, how much has the dealer offered?
Anything less than £18k and you are being shafted big time.
Personally I'd rather burn it than let it go for less that £19k..

Petem95

Cant believe you would sell and lose 7-8000 after only 1k miles! I know Impreza slide in value at an alarming rate these days, but thats one hell of a hit to take.

Thats 8quid per mile, so just think everytime you've done a 20-mile trip to a shopping centre and back its cost you 320quid + fuel

The longer you keep the car, and the older it gets, the slower the value loss - surely got to be worth keeping at least a few more years on principle!!

Also why are you buying an X5 now, when a new model is due? The value of that will take a big knock then!!

John57

I've just bought a std WRX on a 54 plate from a dealer .... I hopefully pick it up next Friday. Fortunately I needed the 5 door so couldn't have bought yours. If I could have, and had bought a 4 door it would have been an STi .... in which case I would have been gutted seeing your advert !

I lost £7K on a 1 yr old S2000 last year so know how you are feeling ....but at least I had managed 10,000 miles. Best of luck though .....

shaunywrx

I just hope you keep the X5 longer than you kept the STI, otherwise next year you're be bleating away again about losing money on a year old X5, and what a rip off car dealers are, please try to remember, if you don't like losing money, don't by BRAND NEW cars, and expect to sell them after a short time, without losing lots of money.

Chins

Agree with Russell.

Sorry, but the VAT thing is a red herring. ie I bought an M3 for £42k and sold it 5 months later for £40k to a BMW main dealer. Impreza Terzo £23k ish and lost £900 selling back to dealer (the good days). Even my last car a GTI MK lost less than the VAT. I could go on with a list of the new cars Ive bought that have lost less than the VAT. When a dealer resell, he only pays VAT on the profit, not the whole car. Dealer like to spread this crap - its a supply and demand equation, pure and simple.

One of the main things that affect short term residuals is ability of dealers to get brand new cars quickly and also the margin they make on them. Most dealers are not going to want 05 STI's on the forecourt with the 06 just coming out and Subaru UK have probably given extra margin to dealers to shift the last brand new o5's

Jonathan

explore

lol just 1k on has it even had it first 1k service? car hasnt even come to life till around 15k and my god why a big ugly bmw.

Cocker

iTrader: (3)

my mate brought a brand new 406 coupe back in late 99 for 25k. in 6 years he's only done 40k miles and he just got offered 3.5k part ex for it last week against an audi s4

suffolkdar

It's worth as much as someone is willing to pay!, i have just bought a better than new sti type uk ppp on a 03 plate for much(and i mean much) more than any price guide thinks it's worth, it was from a mate, he had 4 people wanting to buy it, 2 of which offered more than i paid, but as a true mate he gave first refusal on the car for the price he said i could have it for! (good job he is loaded!lol), This is all true, and i'm glad i bought it, OVERPRICED? who cares!

s70rjw

iTrader: (2)

Scooby values are no worse than any other manufacturers on the second hand market. ALL cars lose most of their value over the first year then the second then the third. Unless you yearn for the smell of a new car a used one 1k miles perhaps...makes more sense.

Faitha 2 B

[QUOTE=pslewis]But it's actually a 2004 car?? On a 54 plate??

When you say 2005 - what does that mean??

Clearly, as we near 2006 a 2004 car is going to look 2 years old .... next month it is 1 year old, in fact.

£19k Part Ex. therefore seems quite reasonable .... are you getting a chunk off the list price of the X5?

Pete

2005 model -DCCD etc, thought I'd try to make it clear that it wasn't one of the previous models which were heavily discounted to clear.

My opinion was to offer the car to a genuine, decent punter at trade money to prevent the dealer getting a pound of their flesh too? Is that so bad?

Im not bleating, contrary to what that aggressive fool shawnwrx suggests, I can fortunately afford to take this hit, not overly pleased about it but hell, there are no pockets in a shroud?

The dealer will take more money off the X5 if I dont have a trade in, not much though.

Yes the X5 is being revised, but not till spring 2007 - this will be a total change moving it to a 7 seater & not just a facelift as subaru seem to do each year.

Yes it will drop in value (the X5) just like the rest, but if I wanted to invest Id buy a house not a car, I like new things & as long as I can afford new I will continue to buy new. Someone has to take the hit, I did it with a XK8 last year & probably will with this X5 next year!

I appreciate all the posts in reply, well with the exception of the one from Mr Angry, but I suppose that must have made his day venting off at the thread. I'd check my blood pressure if I were you, Its me whose losing all the cash not you! Ha Ha!!

Regards, Faitha

pslewis

I take it that you HAVE invested in property FIRST!!??

Pete

Petem95

I was agreeing with you upto this point! I think putting 50k into a house now would probably lose you a fair bit if you sold in the next few years!

Seem X5 replacement isnt until 2007, later than I thought, so values should stay firm for some time yet, especially for the diesel ones.

Faitha 2 B

[QUOTE=Petem95]I was agreeing with you upto this point! I think putting 50k into a house now would probably lose you a fair bit if you sold in the next few years!

Yes mate, your right...but I'm sure you see what I was trying to say though?

Faitha.

Faitha 2 B

Yes Pete, One reason I can afford to take such crazy hits.... Thank goodness for the property market!!

Faitha.

davedipster

I stand corrected then, the VAT thing must be a red herring and we must stop it here. I suppose that it's like anything...it's only worth what people are willing to pay, no equation can account for this.

I think it's a steal at the advertised price, if I was buying I would go for this today! rather than visit a dealer for a new one.

dipster

TheVoices

iTrader: (5)

If you can buy a new parallel import with warranty for less than £21k, any dealer valuing your car will take this into account (even if yours is a UK car). A Subaru dealer might try to sell it on for £21995 ? (if it's got the PPP that a new one has FOC),if this was the case they wouldn't give more that £19995 trade in. I would be very suprised if another (non Subaru dealer) would value the car at any more than £18k ?. Not saying this is all it's worth but people will always compare a second hand car to the cheapest brand new equivalent ie why pay £21995 for a used UK when you could have new Euro import for £1k less ?

Faitha 2 B

Cheers dipster.... Im sure that someone currently lookin for a newish STi will get the benefit prior to the Bmw dealer whisking it off & adding his crazy cut!

Faitha.

rotty

Was looking at a 350Z , just had a call back re p/ex , my car is a Jan 2004 UK STi with 31k on , best offer I have had is £13k for it

lordretsudo

I bought my 53 reg STI (Type UK) at the beginning of June for just under £18,000 - this seemed like a reasonable price at the time (it was from a Subaru dealer, and I checked prices at other dealers, seemed about right) and I got a reasonable part-ex on my Lexus. I'm starting to think it's the worst car buying decision I've ever made! I still love it though, and don't really regret it...

The annoying thing is that our other car (an 02 Toyota MR2 Roadster) has only lost about £2500 - £3000 in the two years since we bought it, just shows the difference in depreciation, especially when you consider that neither the MR2 or the STI are exactly common cars and are thus equally desirable (in theory anyway).

Steve777

iTrader: (8)

This is one of the main reasons I haven't bought a new scoob. Like another poster has said he has sold at above his purchase price but that was probably before the import restrcitions were lifed in around 2001. Looking at the guides the residual value is around 40% of the purchase price after 3 years and from what ive seen dealers don't want to give you much if anything for factory fitted extras such as PPP, PFF7's, etc etc so don't be surpirsed when you get a poor trade in, just make sure the next car you buy has improved residuals. For eg an M3 is about 69% after 3 years and the S2000 which i have is about 62% after 3 years if you want a more realistic comparrison

Steve

dexter

Steve, I know what you`re saying there mate, but it would seem that no marque, these days, is invincible to over-depreciation, even BMW.

One of the blokes on another forum I visit has been trying to off-load his 330 CI (one of the more desirable BMW`s, I would have thought), and after paying around 36k for it (including options), BMW dealers are now offering him only 20k for it, only one year on.

Steve777

iTrader: (8)

Yes its not a good situation at all.

The way I did it, was off load private cheap and then haggle with as many dealers as possible for a cash deal. Saved me quite a few thousand in the end on the retail price of the S2K and managed to get free servicing for 3 years which you can't usually get on this model

Faitha 2 B

[QUOTE=lordretsudo] I'm starting to think it's the worst car buying decision I've ever made!

I'm beginning to think along these lines at the moment too.

I agree with an earlier post too, saying the BMW X5 is an ugly beast, but at least its residuals are a tad healthier, well for the moment at least!

Faitha.

pslewis

Anyone who has a MR2 and S2000 thinking they are immune to the downturn in secondhand car prices should try and sell .................... they are NOT selling for what you think, or what they were 6 months ago!!

Just pop over to the MR2 Forums and the S2000 Forums ...... plenty of people just can't sell - I was offered 5, yes 5!!!! MR2's immediately I registered on the MR2 Forum

Very few cars are selling .... and if they are, they are selling on price alone!!

Dealers will always say the car that THEY have is in HOT demand, but, YOUR car now has no buyers whatsoever (and they are doing you a favour, just by considering taking it off your hands!!) ....don't ya' just love 'em??

Pete

Steve777

iTrader: (8)

I'm lucky. I already have a buyer for my S2K once ive finished with it .