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[Viral_Jim]

I genuinely find it odd that people ditch cars after 2-3yrs with so little mileage done, having taken a 50% ish hit on the value. Unless they are all ex fleet? Must be some rich folk about

[Doctor Gollum]

In theory the depreciation cancels out the reliability/repair costs of years 4-6

[STEMO]

I genuinely find it odd that people ditch cars after 2-3yrs with so little mileage done, having taken a 50% ish hit on the value. Unless they are all ex fleet? Must be some rich folk about

Ex mobility.

[Viral_Jim]

Explains it .

I couldn't imagine a private buyer taking that kind of hit.

[Doctor Gollum]

Explains it .

I couldn't imagine a private buyer taking that kind of hit.

You would be surprised... Trick is to get a good deal with the initial purchase...

For example, Mum negotiated a new Rav 4 five door Gx diesel with leather for the list price of a base petrol three door. When she traded it for a new Yaris two years later, there was enough equity left to buy the Yaris outright and give her change. Two years later, the 'free' Yaris made for a decent deposit on a heavily discounted, (T4 diesel estate for the price of a T2 petrol one). Purchase carefully and a new car needn't cost a fortune. Trick is to haggle. Hard.

[TheBoy]

That's what I said to tunnie in another thread - don't discount new purely on screen price.  There are deals to be had. Just be prepared to walk out if you're not getting what you want.

[Doctor Gollum]

My first Insignia was £13,000 with delivery mileage. At the time could have bought a Pre reg Zafira B petrol for £10,000 both main dealer.

Although both were without haggling...

Insignia A will be a cracking new car buy.

[STEMO]

My first Insignia was £13,000 with delivery mileage. At the time could have bought a Pre reg Zafira B petrol for £10,000 both main dealer.

Although both were without haggling...

Insignia A will be a cracking new car buy.

I understand what you're saying, Al, but a new car will always attract 20% VAT, so that amount off means your new car is still worth less than what you paid for it if you were to trade it straight away.

[Doctor Gollum]

Because it becomes 'used' the second you sign the paperwork and you can buy an 'unused' one for about 60% of the rrp rather than for tax reasons...

The vat is irrelevant. The first owner, ie the dealership, pays the Vat and first registration fee, both of which are written off as legitimate business expenses. They make their profit on the extras such as magic polish and accessories. And finance referrals.

You buy a new car at cost plus a few quid, dealer makes a nominal profit for very tax efficient minimal effort. Win win.

[STEMO]

Yep, but you then have two previous owners, which devalues the car...although it shouldn't. That how we bought wifey's captur, registered by the dealer in Dec 2015, bought by us in Jan 2016, with 7 miles on it, for £12000 instead of £17000 list price.