[Roma]

I got a bit of shock just now. I took my car in to a dealer (non-Jaguar) for a possible p/x on another model (again, non-Jaguar). The sales manager looked around the car and promised to call me back later today. My car is immaculate in every respect as I take very, very good care of it. The paintwork and interior is unmarked and the car is in better than showroom condition thanks to the regular detailing.

Anyway, I paid a shade over £40K for it just six months ago. The dealer is offering me £28K for it as the trade-in (p/x) value. That's £2,000 per month in depreciation since new.

I am still recovering from the shock.

Has anyone else had their XF's valued recently and can provide us with the per-month depreciation figures?

 

[scottie99]

Thats shocking! What happened to the What Car predictions of 51% retained value after 3 years?

Is this applicable to Jaguar or is the whole 'luxury' end of the market affected?

 

[Roma]

It seems to be the whole prestige/luxury sector that is affected. One of the problems seems to be getting a buyer at a Jag dealer to accept the car. The non-Jag dealer has to get a confirmed price from a Jag dealer in order to offer me a p/x value but Jag dealers seem to be very reluctant in even offering to buy any XFs!

It was only a speculative query on my part and I expected to be offered around £32K (that's £8K lost over 6 months). But the figure of £28K was wholly unexpected.

 

[pekem]

Thats shocking! What happened to the What Car predictions of 51% retained value after 3 years?
Is this applicable to Jaguar or is the whole 'luxury' end of the market affected?

What happened; the credit crunch happened!
What Car could not have foreseen the present financial disaster and it remains to be seen how gentle the decrease is from now on. Let's hope that it is not as steep as the initial loss.
Everybody will feel the consequence of the present financial state in one way or another, some will feel it more acutely.
However, the Society of Motor Manufacturers and Traders (SMMT) acknowledged a few years ago that depreciation is at its greatest when a car is new. In fact, 50% can be wiped of the value of a new car within a year of first registration.
I find the above figure surprisingly high but I do recall being told on numerous occasions in the past by people justifying their position of never buying a new car because, in their view, it would lose twenty five percent of its value as the car was driven out of the showroom. It was acknowledged that subsequent annual depreciation occurred at a gentler rate.
It has been said that as a rule of thumb, prestige brands and new models tend to depreciate the least. Conversely, mass-market brands and old models can lose value at breakneck speed. So maybe the more we talk of the impending 3.0D the quicker the rate of decline of the 2.7D!
What the SMMT would say today would be very interesting.

 

[Hutton1969]

What did you expect? It's like offering to sell a banana to a butcher! The only proper way to ascertain the correct second hand value is via a Jaguar dealership. The market is bound to be effected by the credit crunch. Moreover, it is well known that the maximum depreciation on most new cars occurs in the first 6 months.

 

[andrewll]

Maybe a good reason for not 'buying' your vehicle outright but getting a guaranteed future value finance deal. I did when I bought my XF (beginning September) and the GFV was around 45% of the original value.
I also have a BMW X3 which I did buy outright and looked at changing that a couple of months ago. It was exactly 28 months old, in good condition, slightly high mileage (40k) and I was offered 35% of what I had paid. Of course the reasons why are obvious but a bit tough to take especially after dropping £24k on my XK (18 months old) earlier in the year!
Think I'll be hanging on to both the X3 and especially the XF for quite a while !!

 

[Greybloke]

I'm not surprised at all. Dont forget it's second hand the minute you drive off the forecourt with VAT alone accounting for £7,000. Factor in high depreciation in the first year as well as the "credit crunch" and bingo £12k gone awol

On the plus side you should be able to do a cracking deal on any new car

 

[craig]

Was going to say that tax is a fair bit of that hit but beaten to it!

I dont know why you worry. Depreciation is only ever a concern when you come to sell the car. It winds me up people talking about how much they have "lost" during their onwership. Almost as much as people who boasted how much their house was "worth" but only had the one. (not aimed at you Roma)

All new cars lose value and the more expensive they are the quicker they lose it.

 

[pekem]

I got a bit of shock just now. I took my car in to a dealer (non-Jaguar) for a possible p/x on another model (again, non-Jaguar). The sales manager looked around the car and promised to call me back later today. My car is immaculate in every respect as I take very, very good care of it. The paintwork and interior is unmarked and the car is in better than showroom condition thanks to the regular detailing.

Anyway, I paid a shade over £40K for it just six months ago. The dealer is offering me £28K for it as the trade-in (p/x) value. That's £2,000 per month in depreciation since new.

I am still recovering from the shock.

Has anyone else had their XF's valued recently and can provide us with the per-month depreciation figures?

Firstly Roma, were you a serious buyer; did the dealer perceive you to be?
Secondly, were you offering full retail money on the car that you were wishing to trade yours in for?

 

[Roma]

Yes, I went in a expressed an interest in a particular car, subject to the best price the dealer could give me for my XF. I even took a test drive whilst the sales manager tried to find a Jag buyer on the phone. An hour later he was unsuccessful but promised to call me back by lunchtime. I then went to work and, sure enough, the dealer had managed to find a buyer who had offered him £28K. I told him I wasn't interested. He was prepared to offer me a discount on the car that I was interested in.

 

[garyxfp]

Roma its all about getting near the figure that you want, its made up of part x quote and discount on the new car, if the dealer wants a sale they will try to get close to your figure, ifs its a BMW you are after their sales figures are 62% down so a deal must be there somewhere, they were offering a £3K discount on their cheapest cars (not minis).

gary

 

[Neillbro]

Gary is right it is all about the Price To Change.

While our XF's have lost money, spare a thought for the poor 4X4 driver who couldn't give his car away even if he wanted too.

I love my car, it is head and shoulders ahead of its competitors on most all criteria and as long as you are keeping it for 3 yrs, especially with a GR at the end then there isn't an issue.

 

[garyxfp]

Just announced Germany has gone into recession no housing problems, no debt, blamed on poor exports so lads pick up your new beemer or merc for next to nothing, I wish.

gary

 

[Roma]

Apologies, I underestimated the depreciation. I've now been offered just £26K for my car. That's £14K depreciation in 6 months. Not good.

Most Jag dealers are not interested in buying back your XF as they are already overstocked. This is proving to be a media-hyped purchase. Now that the bubble has burst on the 'high-residual' XF, the reality is beginning to hit home.

 

[pekem]

Well Roma,
I have to say that you were either not seen as a serious buyer or you were getting a large discount on the other car. I have just received this valuation for a cash purchase from:
https://www.webuyanycar.com/default.aspx

We will buy your car now for £26,695*
Your vehicle valuation is subject to inspection and contract. An administration fee may be charged on purchase of the vehicle depending on the purchase price. Based on a purchase price of £26,695, an adminstration fee of £29.99 inclusive of Value Added Tax would apply. This would be deducted from the final purchase price.

I should add that I am still blissfully happy with my car and have no intention of selling.
I suspect that with the credit crunch now biting hard we will learn of more cars, XF's included, being given up although that may not be the reason that will be volunteered and probably for a lower price than the one above. It would be interesting to visit British Car Auctions in the coming weeks and then we will see the impact of the credit crunch on the residual value of cars, including the fabled Mercedes :!:

 

[Hutton1969]

Apologies, I underestimated the depreciation. I've now been offered just £26K for my car. That's £14K depreciation in 6 months. Not good.

Most Jag dealers are not interested in buying back your XF as they are already overstocked. This is proving to be a media-hyped purchase. Now that the bubble has burst on the 'high-residual' XF, the reality is beginning to hit home.

Why not just enjoy the car for f....s sake!

 

[penultimateblack]

I planned to keep my XF for three to five years anyway, but now I will have to resist changing it for a bargain R8 or Aston Martin

 

[Steamdreamer]

What is it about people who spend a lot of money on a luxury car that - in most cases - they seem to love, and then do nothing but pick, pick, bloody pick!!!???

Who in their right mind and a deep recession would NOT expect resale prices to drop off a cliff?

I'm with Hutton on this one - I love my XF and plan to keep it for a number of years, and the steep early depreciation is therefore entirely irrelevant, and should be to everyone who likes the car and isn't being forced to sell, surely?

 

[Neillbro]

Here Here,
Like the media driven doom and gloom that the country finds its self in, there are way to many "moaning faced $$$$$$$$ in the around.