23:35 For the time-poor among us, John's tips for minimising depreciation include negotiating a discount at time of purchase (eg 10% off RRP), extending ownership by an extra two years (eg upgrade every five years rather than three years), and selling privately rather than trading through a dealer to maximise re-sale value. Thanks John, great advice! #grammarmatters
John- Well done ✅ presentation. I've always thought that resale value is only important if you "intend to sell". And, we typically hold our cars for 10-15 years, which we can easily do in our climate. Cars don't rust where we live and service and use is really the name of the game when you own a vehicle. I've also found that the more utilitarian the vehicle, station wagon, truck or van, the more likely the vehicle will hold it's value, and as long as it's serving your needs it's generally worth keeping and fixing. Vehicles are so expensive these days, it's almost always less expensive to maintain and repair your own vehicle. Personally, I think the only compelling reason for turning around and getting a replacement is for upgraded safety. We have 3 vehicles, a Toyota Prius for city driving and mileage, a Subaru Outback for longer range trips and hauling cargo, and a Mercedes Benz Sprinter Class B RV for overnight and extended long trips where we can sleep in the van, social distance and still get 19 to 20 MPG.... All of them are between 9 and 12 years old...the thought of just selling them for a newer model sounds financially unappealing to me....it would cost a small fortune to replace and for what? Status?? No thanks. My two cents... ----Mark
got a 02 civic 5 door base model 1.4 non vteh and i have the same thoughts. it's rust free, just a little bit aesthetic, gets 47-48mpg on the motorway, will go in ulez zones and is dirt cheap to insure £270/year. the engine goes forever and you can drop the seats into a flat floor. loads of space inside, more than into a mid sized suv and good tow capacity as well. i can put a 6 pack of 2L water bottles lenghtwise behind my seat and the floor is flat. how nice is that? i don't really get anything other than some fancier tablet inside that can and i did fix with some chinese unit and i could put myself in debt to impress the neighbours for 2 fading seconds. why change?
Agree. It’s also more convenient to own several vehicles in case one of them breaks down and have to be in the workshop, or God forbids one of them gets wrecked and have to be in the body shop for an extended period or written off by the insurance. At least you don’t stress about having to buy another vehicle right away.
Haha !! It’s very rare that I watch a 30mn Vid from beginning to end, but I did with this one. This Ozzie, sori, this Australian, has such a charming manner and such a range of almost-decent idioms that I found myself completely enthralled. His in-depth knowledge and the extraordinarily generous amount of ‘homework’ (prep) he did to demonstrate his hypothesis was really heart-warming. And, I have to say, the explanation of his theory was both comprehensive and completely convincing. Good ‘un, Cobber !!!
Thank you. This video on car depreciation is so important for public Greater Good. Out of sight is out of mind. You provide a great independent position. I appreciate your work.
@@Matthias_Fischer My experience of car buying with John is that he has old fashioned integrity. I bought a new car a month ago for a lady friend via John's recommendation. There were problems and John responded quickly. Please understand my father was a 2nd hand car salesman after being a mechanic, so I was expecting endless bullshit but got hard nosed comment from John. Thank you again John.
@@Matthias_Fischer I am an independent consulting engineer in.my own practice for 35 years and paid by clients. The fact that money is paid to me does not change my independence as I have walked away from large paying clients wanting me to compromise on Australian Standards. People are not perfect and makes mistakes, but someone with personal integrity cannot be bought, only paid for services.
John I know this doesn't help your business model but the best way to beat depreciation is to buy a 2 year old car and use it for 3-4 years. On top of this if you haggle upfront like you say in the video it's pretty good and furthermore if you buy a Kia you're covered by manufacturer warranty for the duration of ownership.
Buy a good car and drive it until you wear it out ( 10 ,12 ,15 years ) . The important factor here is knowing what you really want. Oh yeah, take good care of it , that helps keep it going !
True. If you buy a new car and own it for 15 years, what the notional value was three years into your ownership is irrelevant. Having said that, like many people commenting here, I prefer to buy low km older vehicles that someone else has taken the depreciation beating on. You just have to patiently wait until the right vehicle comes along. You clearly don’t have the range of choice if you are looking for a specific make and model of second hand vehicle, compared to buying a new one. If, however, you are just looking for reliable transport you can broaden your search and increase your choices.
Yep, mine’s cost me $35 per week in depreciation over the 11 years I’ve owned it. And I’ve covered 330000km in that time. And when it’s time for a newie there will be no need for any trade in or private selling angst! The scrappies will even pick it up from my place lol!😂
Yup. I've got two vehicles much older than John is talking about here. The first is a motorcycle I paid NZ$30k for brand new in October 1995. Sadly I couldn't negotiate anything off the top as I pre-ordered one from the first shipment of five to hit NZ. Now 25 years old and still using it. I just did a very pleasurable 920 km in a day trip on it two weeks ago. That makes the depreciation no more than $23/wk if it's worth $0 now. Pic two weeks ago pbs.twimg.com/media/EjblSJDUYAAsIFf.jpg The other is a 2008 Subaru Outback 2.5XT (265 HP turbo) bought with 87k km for NZ$10.3k privately back in May. It's got such modern features as "EysSight" dynamic cruise control, lane departure warning (I turn that one off), pre-collision warning, lead vehicle start warning. Yes -- in 2008. It used a very reasonable 8.34 l/100km over a 716 km tank on an open road trip recently. Assuming I keep that 10 years (and why not? My last Outback was 22 years old and trouble-free when I sold it) that makes depreciation a maximum of $20/wk if it's worth nothing then. Still a very comfortable, fast, and safe car. pbs.twimg.com/media/EchyAkYU0AIvq_P.jpg
Great analysis, and different way to think of car ownership. Many people think leasing is a free lunch because of the low payments, but you don't get a car at the end of the deal. Buying low and keeping is the best way to go, financially anyway.
Another one (which kind of goes along with #1) is buying a newer used vehicle instead of a brand new vehicle. That way, someone else has already fronted the giant 'off the lot' depreciation dive and you only have to deal with the steady year-by-year depreciation. Then if you combine that with all three of the points you suggested, you can potentially have a best case scenario for minimal depreciation.
Excellent tips. In my country (Pakistan) due to prolonged delivery times, if you sell a car within a year, you can easily get more money than what you actually paid! This is because car dealers charge (extort) extra money, over and above the “on road price” for urgent deliveries. Buyers prefer buying a several months used car instead of waiting for 6 month.
well, my thoughts on depreciation. first, nice to see you with your drill in your hand for the most part of the video...... second. really, the whole part about depreciation i don't understand when trying to find the cost to own is basically how long you keep your purchase. if you are like me or my hillbilly friends, you keep you cars forever. driving around my area, you would love, john, to see the incredibly beautiful, creative ways they keep cars alive here in the hill. i saw one car last week where NOT ONE fender was the same color, having been replaced from many different junk-yard replacement parts. spectacular. i think THE most creative work was a small ford escort with around 7 bleach bottles, all roped together along the front, replacing a lost bumper with water pressure!!! i think, in all the cars i have owned, i only sold one to another person. the remainder are still with me or in the hands of some family member, kids, nephews, nieces or whoever needed a cat in school and i had no more use or need of it. so, in my life, depreciation is really a useless tool when deciding on a vehicle's value or coist to own. keep with the repairs, fuel and such when looking at cost to own.
The one other very important thing to do to limit depreciation (that John didn't mention) is to look after your car (service on time, don't abuse it) and keep it in good condition, because it is almost impossible to sell a tatty used car privately (unless very cheap), and the dealer will gut you on trade in price for any defects your car has.
Much easier to double the depreciation, go to a mercedes or a BMW dealer, show you have money, accept any offer, Buy a too expensive car you cannot possibly afford. Sell it in panic. Make sure the buyer notice you are in panic. Works everytime.
My first car was a very old Datsun 120Y. It was a block of rust on wheels. I gave it a name which I used to call out every morning. It was "Start you bastard!"
@chris younts there is no free lunch. We used to make a lot of money of leasing charges that accounted for repairs. If the car was a lemon we took a hit on 1 car maybe but in the end we factored all those numbers in and just billed everyone a generous allowance for their car to go wrong. You may hit the jackpot and get a massive repair bill cheaply but really are you winning if you are driving an unreliable poobox that breaks down
Another informative, well considered piece! With the only (understandable) option missing of don't buy new. Let some other poor sucker wear the first year or so depreciation and then see how much you need to take to the post office each week, for 3 years...
John I do find your videos are excellent. When you get into the weeds of it it's even better. Any chance you might do some reviews on pickups. Just a suggestion. I know your time is valuable just a suggestion. Keep up the great work. Great video.
Another great watch John, some good financial advise for those who get a new car every three years. I’ve played the depression game, figured 3k per year (cdn) if one was watching the money fly. Played it by keeping the same Pathfinder for 17 years. While it has the typical rust spots on all four corners, I figure it’s paying me to drive it now. Still hasn’t shit all over me. 40k new / 3 k per year paid off in 13.3 yrs. (ugg such a pig...NOT... thanks consumer report for showing it as a recommend pick). Now for the past 6.6667 yrs at 3k per year it’s given back almost 20k. I’d say not too bad, it was a keeper. While today I’m getting ready for another cdn winter (filled full of -10 average down to -30 coldest) figure it’s still a good ride enough to take me on ski or beach adventures in the good old frozen North. Still looking for a replacement. Figured a couple years ago a Subaru might be in my future, however with the issues noted regarding their shit box motor problems, and how the mother ship isn’t responding well to it royal loyal customers I’m not sure where to look. Thanks for saying no to Nissan, in 2020, I think I’ll look at a Tacoma as my next ride.
Bet we still have some petrol and diesel vehicles for another 50years. When they ban the new sales just make them all pre registered it will be pre reg or nothing at that stage
@chris younts I suspect synthetic liquid fuels will be produced as electrifying medium and long haul aviation is a huge way off. Last I did the sums and sprinkling a lot of optimism on the efficiency & weight of electric propulsion for say an electric A320 with batteries weighing the same as max fuel load you get about 45 minutes flight duration. And that takes no account of the payload issues of landing something with the equivalent of full fuel, etc.
I bought a new Sorrento via John's company in 2015 - I think I got a 7k discount from memory. The local KIA dealer said as its a new model, there was absolutely no way to get anything off the price.
The best way to handle depreciation is to take advantage of it instead of fighting it. Buy a car that’s one or two years old and let someone else absorb that initial hit of depreciation. You still have an essentially new car, but you’ll save thousands.
This is true. At least it was true pre-pandemic before the supply chain clusterfuck. I'm in the new car market now purely because 2 or 3 yr old cars are essentially the same price as new ones, without the warranty and latest tech. Even with the rising price of new cars, they perversely represent good value now relative to 2 yr old used cars.
@@guymp right you are! Funnily enough I found the exact same thing when I was in the market so I ended up buying a brand new outback, very pleased with it.
Thanks John. This is something I bang on about all the time because I was taught young. As a young guy I bought a Corolla new and kept it for 12 years...21k to 6.5k... Not bad. I personally really hit the nail on the head when, last year, I bought a second hand FJ Cruiser. They have incredible value holding capability.
I purchased my Forester XT at the end of year sale, negotiated 7K off the price with a bonus 5 years factory warranty, as I wanted the 5 year turnaround for simply the reason of depreciation. The Forester has good resale and I am currently looking at a loss of around 15K over 5 years which I think is pretty darn good. I also buy all of my phones/tech gear one generation behind current and this over the years has saved me thousand upon thousands of dollars.
I took this slightly further. Bought well-maintained cars in the 2 to 4 year age range and kept them till they were scrap. Excluding the toy (a Caterham, bought as a kit) I'm only on my 3rd car since 1982 and the inflation-adjusted depreciation is about £1000/year. Buying an E34 BMW shortly after the E39 came out was a help as was buying the current car (Outback) in the unpopular metallic beige that the dealer couldn't shift.
@chris younts Well, I might still be driving my 1978 Jaguar but for it being T-boned and written off. I do have a 1963 Massey Ferguson 35x that is worth significantly more than I paid for it 20 years ago even allowing for inflation and I'm quite sure it will still be doing a day's work long after I'm gone. There is something very appealing about basic "square-nut" engineering and the ease of maintenance it provides. The Caterham, of course, has some of that having changed little in design since the 1950s with only minor items of modernity (such as an ECU) on my '06 car. Given that I would not touch anything with an electronic handbrake or an auto box I may well be running increasingly old iron from now on.
@@ColinMill1 Agreed, Last car I bought was at the start of the GFC (2008) I bought a 2004 Jaguar X-type 3.0 AWD for roughly 1/3 of it's new price. Still have it today, still use it as a daily car. has never given any significant problems. Just runs and runs.
One thing to keep in mind for folks from the US, at least in my state, is that a trade-in reduces the price of the purchase with regard to sales tax. This closes the gap a bit between private sale and trade-in. You will still get more selling privately, but maybe not enough to justify the hassel.
That last sentence could be your Rock Anthem, John. “And Baby, that’s how you beat depreciation”. Mind you, I’m struggling to rhyme with “depreciation”. Hang on, Appreciation! Yessss.
For me, the best strategy has been to find a one or two year old model that has a CPO warranty from the manufacturer. You can get a nearly new, typically low mileage car, with a warranty that in come cases is better than the original, depending on the brand. AND negotiate the price. You might not be able to get 15%, but you should be able to approach 10%. Lastly, and this is highly personal... depending on your particular needs and tastes in cars, you might want to research what models are NOT selling well. Dealers are willing to offer a larger concession to rid themselves of lot queens. If you can find an oddball model that fits your needs and tastes, you might be able to get 15% or even more off their asking price.
Hi John, Great explanation and clarification of an 'Elephant in the room' scenario when buying a key item of great cost - including vehicles. Another area that someone could get caught in is via finance. I purchased a car that's on your list in Jan 2019, after 13 months of ownership it was involved in a crash - rear ended. I was paying 'extra' payments on the small loan I had - took advice from financial advisor to finance the car. Anyway, I could have been $20k out of pocket if the car was written off.... The insurer would have paid out the finance company - however I would not have been given back any 'additional' payment amounts over the period - the insurer would have just said 'thanks' for helping us out. Now what I should have done was keep paying the minimum I had to whilst I have a new replacement up to 2 yr clause, in the policy, then possibly paid out the vehicle after this expired. Which then becomes agreed or Redbook or whichever it will be named on the policy. Thankfully the repairer was terrific to work with and did a truly excellent job of the repair and paint match ($16k) repair on a $68k vehicle (13 months old 8k km).. that I rang the finance company and paid out the $32k owing. 4 years early, I then renegotiated the 'agreed' value with the insurer and had an additional 12 months added to the 'new' car clause, plus reduced the insurance premium because of there being no finance. A lesson learned that could have been costly. Could be worth a video... Thanks again for the great content John.
Greetings from Retardistan (Khali-FOR-nya as Arnie would say) from a recently retired fellow engineer (Aerospace in this case). Love your channel. 18 year old Toyota Highlander FWD with 253,000 miles (that's ~407,000 km in Shitsville) and still going strong.
Good data...thanks over my many years of buying and selling cars I have a general rule of thumb.....around $100,000 car dep $15,000yr $60,000 about $10,000 yr sale after 5 yrs
Excellent explanation of common sense. Best buy is probably to purchase a second hand three year old car that was leased before as probably well maintained and in good condition and might still have two years manufacturer warranty on it.
I agree, it jumps off the page/screen, and employers make an immediate note and make decisions accordingly. Employers want the best they can get for what they are willing to pay. Do not make comments in capitals, and shout "FACT". Yes do your best at School, it really pays off in the long run. Just checked to make sure no spelling mistakes.
Great informative vehicle John. It has given me a few things to thing about as I contemplate getting rid of my shitbox (land rover) for something different..
Ooh is there a reason why we don't see 9 seater SUVs as much? Maybe front bench seats that can seat 3. 3-4 in the back and 3 in the rear seats? Is there like a trade/manufacturing standard that limits the seats to just 7 seats?
Hi John. Thank you for your informative videos. I would appreciate your advice. We bought a used Toyota Prado VX 2018 earlier this year at a reasonable price thanks to timing with COVID. We love our car and it has the built in DPF cleaning button. It is working well and because of our location in the country it gets to the speeds it requires to maintain the filter. We recently received some correspondence from a class action lawsuit regarding Toyota’s negligence. It is free to join the action, but I’m not sure this would apply to us. What would you do?
Really appreciate the social commentary around the 9 minute mark. Normalisation around punching below where any full-faculty person in a developed nation should be is getting tiring...
Hi John, I see that you suggest that when buying a new car through a car dealership that we should be able to get a 10% discount of RRP but I used your service to broker a deal for me and this figure wasn’t achieved . Our consultant worked hard and exhausted all avenues ( dealerships) but only saved us approximately 4%. We were happy with the price but am surprised to hear that you think it should be a lot better .
I understand; 10-15% is a pretty big discount in any scenario and I wish we could have been able to achieve that much - if a broker can’t get close to that then it’s pretty tough for the average punter to achieve . I realise that you are just showing general examples but it’s hard to imagine getting such a good deal . Love listening to your advise and recommendations ; plus the great entertainment as you do so
John - looking at buying a new car around Nov/Dec and would love to see a segment on the current state of play of the car industry. With Corona, varying levels of lockdown across the country and a reduced supply into the country, it seems like the normal rules of snagging a bargain might not apply in this time?
Hi John, An idea for a future show could be 'Selling Privately'. You could cover in more detail things you mentioned today on the subject. For example, the best way to handle the "can I drive it" request which could be a minefield for the uninitiated. Personally, I've always said you will drive it when you hand the cash over (or similar). In other words, buy it and if it doesn't drive as well as I say it will oir as good as it looks I will hand your money straight back. This is because if they crash it then a world of pain and inconvenience ensues. Other aspects include: how to handle the funds exchange. WHERE to meet and why. What should and what should not be SAID by you, the seller. best way to present the car. How to combat any objections the buyer may have. Of course, we are all sellers and/or and buyers at some point so the whole process has to be fair all 'round. I'm not suggesting you do a video on advanced selling strategies but maybe just a 'Private Sales For Dummies' vid. Just my 2c. Thanks for another great vid today - very interesting content! Love your clear and concise layout on the white paper board - very well displayed/laid out.
Something I always found interesting about how people react to new car depreciation. They buy a new car; fork over all that money, and then are somehow hurt and offended that several years later they don't get 100% of their money back.
Number 1b John. Always pay cash if you can! Cost of ownership goes up considerably when you finance. Hard to bargain with the dealer on discounts. You pay higher insurance premiums if the vehicle is financed.
@chris younts they consider the insured vehicle as having two owners, ie. Higher risk. Australia is an expensive place to live. There are hidden charges and taxes on most things.
When you buy a new car in Australia. 1/ GST and sales tax 2/ Luxury car tax (if purchase is >$46,000) 3/ Dealer fees and charges 4/ Pre-delivery fees 5/ Ming Mole extras like special paint protection. 6/ Extended dealer Warranty. 7/ etcetera, etcetera. Adds up to many Thousands of dollars.
Great advice. Here in New Zealand, Toyota project the 'drive happy' mantra of fixed pricing. Is this BS or is there always enough room to negotiate the outcome?
RemueraChiropractor . When you buy a new Toyota in NZ you are buying it direct from Toyota NZ not from the dealer. Hence the fixed price because the dealer hasn’t added their margin. Where you will get stung is on the trade-in. For all brands, the starting point for depreciation is the lowest price they sell that vehicle for, normally the fleet price. This can be 20% less than the RRP.
The missus had a 2008 4x4 Pathfinder and it randomly went into limp mode when going from 2nd to 3rd gear. No fix, no warranty, lucky she was able to trade it in.
Hi John Is there any chance you could do a review of the new MG. My Dad who's in his Eighties is looking at one says it's his last new car. Thats all fine and good, But I want him to be safe and secure in his new purchase. Any advise would be helpful. Regards Dave
John, I was looking around an Aussie car auction site the other day, a Maybach that sold new for $1.1 million in 2007 was at the current bid of $92 k that’s not to bad depreciation in 13 years $1 mill, oh dear!
Hi John, here is my way in a nutshell: Buy 3 or 4 years model - most money car loosing that time Spend some time on studing reability reports - if car have known issues price will drop rapidly Buy car for longer period of time (at least 7 years) because you will always loosing money during ownership (except you bought Bugatti Chiron or McLaren Senna...) Buy car that fits your needs (size) Buy highier standard quality in interior and usefull things (eg. towbar) not super flashy in advertisment "I use it once" stuff (autonomous parking). Do not go for a leasing Do not go for big debt credit
Auspost and TNT would have to be the automotive service equivalent of the shipping system. I am astonished of how good a service I can get from anything in Murica.
Wait a minute, but if you hold onto your car longer don't new car prices increase during that time as well? BTW, the last two times I've sold privately its ended up that dealers have bought the car (at my asking price).
Well researched video: you could have pointed out at the end that your service helps with #1. I was surprised that Toyota didn't have a standout result here. Perhaps because you didn't compare Prado ? I would also suggest that the premium models depreciate more. For example when a tight ass like me is looking for 2nd hand corolla with 70k on the clock the sportivo isn't worth any more to me.
Trouble is a lot of (particularly older) people are semi-literate whether they like it or not, and pointing out their shortcomings in this way is likely to put them off communicating online which is a real shame. Also, glass houses and all that -- "data" is plural.
3 years is too early to sell a car, imho. If you're someone who takes care of the car you have and don't drive too much, you're selling an almost new car for the price of an old one at the point. And what are you getting in exchange? Pretty much the same car, with some fresh chemical smell in it. 4-5 years is what looks more reasonable to me. The car is just starting to get old at that point, there's probably a new model out there, some new tech has come to the market, and you feel like you're buying something new, something better. And even if technically you're selling the car at a much lower price, like John showed, your weekly cost is in fact better.
Here in Neverland, private sales are not as much of an advantage because of taxes. When trading old for new with the dealer, sales tax is based upon the difference between the value of the old car vs. that of the new. If I trade the old at 30,000 for the new at 60,000, I save 2400 in taxes (at 8%). That may well equal the difference I would receive from a private sale and without all of the hassle. Of course, government prefers the private sale since it receives tax on the sale price of the old car from the old car buyer and also tax on the full value of the new car from me.
I try to keep cars 10-15 years if possible. But the only way I can do this is to do my own repairs and maintenance. The only major repair I did not do was the rear main seal. I figured on my wife's 2005 Sienna, I saved about $10,000 USD on repairs compared to dealer cost , between the last 150,000 to 210,000 mile leg of her life. The recent repair was estimated at $6000 USD and required a new Cat / Head Gasket and other repairs to the Flux Capacitor. So we decided to bite the bullet and trade it for $1000 to buy a 2 year old Forester, for about 30% less than retail for a new 2020. Overall I can't complain 8 times around the world in comfort with 3 kids as far apart as possible with 3 row seating. Our car was named Sandy, in car years she was 15x6=90 years old...may she rest in peace. BTW...Great Video
so i got my kia stinger gt 2019 my 20 in nov and plan to keep it for 15 years plus i got it for 63k with the bi module and i think new it was 68k plus 3k for the bi. so ive saved a fair amount so my depreciation wouldnt be next to nothing?
Don't worry about me. I named my car Luseall (luse all over) She hasn't depreciated in the last 10 or 20 years. Every once in a great while I still have to make a payment at the auto parts store but it is never over a couple hundred dollars and not very often.
Also don’t spend money on fixing cosmetic blemishes that don’t really bother you because you think it’ll give you a better trade in price. The dealers have professionals that will fix up the body and interior for next to nothing and in no time. Similar with private buyers, just be honest that you’re selling the car as is and have taken X amount of money for the damages. For calculating X I recommend taking the actual quote from a repair shop and dividing it by 3. Also show the buyer the appropriate ChrisFix videos to convince them it’s super cheap and easy to fix it yourself. 😉
buying low mileage 12 months old and keeping it longer usually works out better. in 2005 I bought a 1.9tdi fabia 12 months old for 6.5k....ran it until 2018 and got 1.5k with 70k miles on it....think it was a 9k list car when new
55% retained value after 3 years based on MRSP and trade in is amazingly good. New cars depreciate exponentially, if you can't stomach that buy a car 3 years old. New cars are also sometimes less reliable than a well looked after used car.
Thanks for the research ideas. A conclusion I've arrived at is- buy a low mileage three year old private party car and hold it for two years. Negotiate $3k off the private party price. And sell it privately. So a Sorento buy at $38800 and sell at 58% of $58,990 for $34k. cuts the cost of depreciation to $46/week.
23:35 For the time-poor among us, John's tips for minimising depreciation include negotiating a discount at time of purchase (eg 10% off RRP), extending ownership by an extra two years (eg upgrade every five years rather than three years), and selling privately rather than trading through a dealer to maximise re-sale value. Thanks John, great advice! #grammarmatters
Cheers mate 👍
John- Well done ✅ presentation.
I've always thought that resale value is only important if you "intend to sell".
And, we typically hold our cars for 10-15 years, which we can easily do in our climate. Cars don't rust where we live and service and use is really the name of the game when you own a vehicle.
I've also found that the more utilitarian the vehicle, station wagon, truck or van, the more likely the vehicle will hold it's value, and as long as it's serving your needs it's generally worth keeping and fixing. Vehicles are so expensive these days, it's almost always less expensive to maintain and repair your own vehicle. Personally, I think the only compelling reason for turning around and getting a replacement is for upgraded safety. We have 3 vehicles, a Toyota Prius for city driving and mileage, a Subaru Outback for longer range trips and hauling cargo, and a Mercedes Benz Sprinter Class B RV for overnight and extended long trips where we can sleep in the van, social distance and still get 19 to 20 MPG....
All of them are between 9 and 12 years old...the thought of just selling them for a newer model sounds financially unappealing to me....it would cost a small fortune to replace and for what? Status?? No thanks. My two cents...
----Mark
got a 02 civic 5 door base model 1.4 non vteh and i have the same thoughts. it's rust free, just a little bit aesthetic, gets 47-48mpg on the motorway, will go in ulez zones and is dirt cheap to insure £270/year. the engine goes forever and you can drop the seats into a flat floor. loads of space inside, more than into a mid sized suv and good tow capacity as well. i can put a 6 pack of 2L water bottles lenghtwise behind my seat and the floor is flat. how nice is that? i don't really get anything other than some fancier tablet inside that can and i did fix with some chinese unit and i could put myself in debt to impress the neighbours for 2 fading seconds. why change?
Agree. It’s also more convenient to own several vehicles in case one of them breaks down and have to be in the workshop, or God forbids one of them gets wrecked and have to be in the body shop for an extended period or written off by the insurance. At least you don’t stress about having to buy another vehicle right away.
Thanks John for the entertainment and the education. 👍👌
Haha !! It’s very rare that I watch a 30mn Vid from beginning to end, but I did with this one.
This Ozzie, sori, this Australian, has such a charming manner and such a range of almost-decent idioms that I found myself completely enthralled.
His in-depth knowledge and the extraordinarily generous amount of ‘homework’ (prep) he did to demonstrate his hypothesis was really heart-warming. And, I have to say, the explanation of his theory was both comprehensive and completely convincing.
Good ‘un, Cobber !!!
Always love the analytical approach you take with every video you do.
Thank you. This video on car depreciation is so important for public Greater Good. Out of sight is out of mind. You provide a great independent position. I appreciate your work.
Thanks very much, John.
@@Matthias_Fischer My experience of car buying with John is that he has old fashioned integrity. I bought a new car a month ago for a lady friend via John's recommendation. There were problems and John responded quickly. Please understand my father was a 2nd hand car salesman after being a mechanic, so I was expecting endless bullshit but got hard nosed comment from John. Thank you again John.
@@Matthias_Fischer I am an independent consulting engineer in.my own practice for 35 years and paid by clients. The fact that money is paid to me does not change my independence as I have walked away from large paying clients wanting me to compromise on Australian Standards. People are not perfect and makes mistakes, but someone with personal integrity cannot be bought, only paid for services.
@chris younts Is that sarcasm or irony!
I very much enjoy your serious reports without too many jokes
John I know this doesn't help your business model but the best way to beat depreciation is to buy a 2 year old car and use it for 3-4 years. On top of this if you haggle upfront like you say in the video it's pretty good and furthermore if you buy a Kia you're covered by manufacturer warranty for the duration of ownership.
I just got my6 rego bill, I don't feel quite do bad now, thank you.
Great video Johnny Cadz. Well researched and based on statistical data which doesn’t care about our feelings.
Buy a good car and drive it until you wear it out ( 10 ,12 ,15 years ) . The important factor here is knowing what you really want.
Oh yeah, take good care of it , that helps keep it going !
True. If you buy a new car and own it for 15 years, what the notional value was three years into your ownership is irrelevant. Having said that, like many people commenting here, I prefer to buy low km older vehicles that someone else has taken the depreciation beating on. You just have to patiently wait until the right vehicle comes along. You clearly don’t have the range of choice if you are looking for a specific make and model of second hand vehicle, compared to buying a new one. If, however, you are just looking for reliable transport you can broaden your search and increase your choices.
@@bruiser6479 So true. If you research for durable models this can work out well. (UK)
Yep, mine’s cost me $35 per week in depreciation over the 11 years I’ve owned it. And I’ve covered 330000km in that time. And when it’s time for a newie there will be no need for any trade in or private selling angst! The scrappies will even pick it up from my place lol!😂
@@bruiser6479 Yeap, unless there is just some really specifically special new car you just have to have, buy 3 year trade old ins or lease returns!
Yup. I've got two vehicles much older than John is talking about here. The first is a motorcycle I paid NZ$30k for brand new in October 1995. Sadly I couldn't negotiate anything off the top as I pre-ordered one from the first shipment of five to hit NZ. Now 25 years old and still using it. I just did a very pleasurable 920 km in a day trip on it two weeks ago. That makes the depreciation no more than $23/wk if it's worth $0 now. Pic two weeks ago pbs.twimg.com/media/EjblSJDUYAAsIFf.jpg
The other is a 2008 Subaru Outback 2.5XT (265 HP turbo) bought with 87k km for NZ$10.3k privately back in May. It's got such modern features as "EysSight" dynamic cruise control, lane departure warning (I turn that one off), pre-collision warning, lead vehicle start warning. Yes -- in 2008. It used a very reasonable 8.34 l/100km over a 716 km tank on an open road trip recently. Assuming I keep that 10 years (and why not? My last Outback was 22 years old and trouble-free when I sold it) that makes depreciation a maximum of $20/wk if it's worth nothing then. Still a very comfortable, fast, and safe car. pbs.twimg.com/media/EchyAkYU0AIvq_P.jpg
Great analysis, and different way to think of car ownership. Many people think leasing is a free lunch because of the low payments, but you don't get a car at the end of the deal. Buying low and keeping is the best way to go, financially anyway.
Another one (which kind of goes along with #1) is buying a newer used vehicle instead of a brand new vehicle.
That way, someone else has already fronted the giant 'off the lot' depreciation dive and you only have to deal with the steady year-by-year depreciation. Then if you combine that with all three of the points you suggested, you can potentially have a best case scenario for minimal depreciation.
Excellent tips. In my country (Pakistan) due to prolonged delivery times, if you sell a car within a year, you can easily get more money than what you actually paid! This is because car dealers charge (extort) extra money, over and above the “on road price” for urgent deliveries. Buyers prefer buying a several months used car instead of waiting for 6 month.
well, my thoughts on depreciation.
first, nice to see you with your drill in your hand for the most part of the video......
second. really, the whole part about depreciation i don't understand when trying to find the cost to own is basically how long you keep your purchase. if you are like me or my hillbilly friends, you keep you cars forever.
driving around my area, you would love, john, to see the incredibly beautiful, creative ways they keep cars alive here in the hill. i saw one car last week where NOT ONE fender was the same color, having been replaced from many different junk-yard replacement parts.
spectacular.
i think THE most creative work was a small ford escort with around 7 bleach bottles, all roped together along the front, replacing a lost bumper with water pressure!!!
i think, in all the cars i have owned, i only sold one to another person.
the remainder are still with me or in the hands of some family member, kids, nephews, nieces or whoever needed a cat in school and i had no more use or need of it.
so, in my life, depreciation is really a useless tool when deciding on a vehicle's value or coist to own.
keep with the repairs, fuel and such when looking at cost to own.
The one other very important thing to do to limit depreciation (that John didn't mention) is to look after your car (service on time, don't abuse it) and keep it in good condition, because it is almost impossible to sell a tatty used car privately (unless very cheap), and the dealer will gut you on trade in price for any defects your car has.
Much easier to double the depreciation, go to a mercedes or a BMW dealer, show you have money, accept any offer, Buy a too expensive car you cannot possibly afford. Sell it in panic. Make sure the buyer notice you are in panic. Works everytime.
Really enjoy the Scotty-esque corner graphic with Shattner during the Pathfinder digression.
'Shat Verified' - yesssssssssssss! MALS!
My first car was a very old Datsun 120Y. It was a block of rust on wheels. I gave it a name which I used to call out every morning. It was "Start you bastard!"
Hahahaha
As someone who modelled car values for a fleet company this is bang on...Also for the average person leases aren't good value.
Thanks very much, Joel.
@chris younts Exactly. Lease a Jaguar, and drive the shit out of it!
@@countdamoney8128 pretty much.
@chris younts there is no free lunch. We used to make a lot of money of leasing charges that accounted for repairs. If the car was a lemon we took a hit on 1 car maybe but in the end we factored all those numbers in and just billed everyone a generous allowance for their car to go wrong. You may hit the jackpot and get a massive repair bill cheaply but really are you winning if you are driving an unreliable poobox that breaks down
@chris younts and it also depends on the type of lease a series of videos on which lease is best
Another informative, well considered piece! With the only (understandable) option missing of don't buy new. Let some other poor sucker wear the first year or so depreciation and then see how much you need to take to the post office each week, for 3 years...
John I do find your videos are excellent. When you get into the weeds of it it's even better. Any chance you might do some reviews on pickups. Just a suggestion. I know your time is valuable just a suggestion.
Keep up the great work. Great video.
Another great watch John, some good financial advise for those who get a new car every three years.
I’ve played the depression game, figured 3k per year (cdn) if one was watching the money fly. Played it by keeping the same Pathfinder for 17 years. While it has the typical rust spots on all four corners, I figure it’s paying me to drive it now. Still hasn’t shit all over me. 40k new / 3 k per year paid off in 13.3 yrs. (ugg such a pig...NOT... thanks consumer report for showing it as a recommend pick). Now for the past 6.6667 yrs at 3k per year it’s given back almost 20k. I’d say not too bad, it was a keeper. While today I’m getting ready for another cdn winter (filled full of -10 average down to -30 coldest) figure it’s still a good ride enough to take me on ski or beach adventures in the good old frozen North. Still looking for a replacement. Figured a couple years ago a Subaru might be in my future, however with the issues noted regarding their shit box motor problems, and how the mother ship isn’t responding well to it royal loyal customers I’m not sure where to look. Thanks for saying no to Nissan, in 2020, I think I’ll look at a Tacoma as my next ride.
By a nice one that you really really like and keep it well maintained, drive it till it drops instead of selling it every 3 years.
1950. In less than 50 years we will have flying cars! 2020 this is how you wash your hands.
Bet we still have some petrol and diesel vehicles for another 50years. When they ban the new sales just make them all pre registered it will be pre reg or nothing at that stage
@chris younts hopefully they keep a petrol supply going for classic vehicles
@chris younts I might be dead by then if not I probably won't be using anything with an engine by then due too old age.
@chris younts I suspect synthetic liquid fuels will be produced as electrifying medium and long haul aviation is a huge way off. Last I did the sums and sprinkling a lot of optimism on the efficiency & weight of electric propulsion for say an electric A320 with batteries weighing the same as max fuel load you get about 45 minutes flight duration. And that takes no account of the payload issues of landing something with the equivalent of full fuel, etc.
@chris younts Absolutely no problem for my Mercedes W110 which is perfectly happy to run on cooking oil or melted butter :)
I bought a new Sorrento via John's company in 2015 - I think I got a 7k discount from memory. The local KIA dealer said as its a new model, there was absolutely no way to get anything off the price.
Never have never will give my car a name ,expletives definitely
Or Carry Mac Car?
Nipple Grinder?
The best way to handle depreciation is to take advantage of it instead of fighting it. Buy a car that’s one or two years old and let someone else absorb that initial hit of depreciation. You still have an essentially new car, but you’ll save thousands.
This is true. At least it was true pre-pandemic before the supply chain clusterfuck. I'm in the new car market now purely because 2 or 3 yr old cars are essentially the same price as new ones, without the warranty and latest tech. Even with the rising price of new cars, they perversely represent good value now relative to 2 yr old used cars.
@@guymp right you are! Funnily enough I found the exact same thing when I was in the market so I ended up buying a brand new outback, very pleased with it.
What a wonderful exceptional video! Very helpful!
Thanks John. This is something I bang on about all the time because I was taught young. As a young guy I bought a Corolla new and kept it for 12 years...21k to 6.5k... Not bad. I personally really hit the nail on the head when, last year, I bought a second hand FJ Cruiser. They have incredible value holding capability.
You are doing great favour to public mate👍👍!
I purchased my Forester XT at the end of year sale, negotiated 7K off the price with a bonus 5 years factory warranty, as I wanted the 5 year turnaround for simply the reason of depreciation. The Forester has good resale and I am currently looking at a loss of around 15K over 5 years which I think is pretty darn good. I also buy all of my phones/tech gear one generation behind current and this over the years has saved me thousand upon thousands of dollars.
Hey John, Love your style, love your direct approach but what's the deal with the drill bit pointer 😘
Buy new... look after it like you care... drive until it dies...not an issue.
Only if it's a Toyota ! Or maybe a Mazda or an Isuzu
I took this slightly further. Bought well-maintained cars in the 2 to 4 year age range and kept them till they were scrap. Excluding the toy (a Caterham, bought as a kit) I'm only on my 3rd car since 1982 and the inflation-adjusted depreciation is about £1000/year. Buying an E34 BMW shortly after the E39 came out was a help as was buying the current car (Outback) in the unpopular metallic beige that the dealer couldn't shift.
@chris younts Well, I might still be driving my 1978 Jaguar but for it being T-boned and written off. I do have a 1963 Massey Ferguson 35x that is worth significantly more than I paid for it 20 years ago even allowing for inflation and I'm quite sure it will still be doing a day's work long after I'm gone. There is something very appealing about basic "square-nut" engineering and the ease of maintenance it provides. The Caterham, of course, has some of that having changed little in design since the 1950s with only minor items of modernity (such as an ECU) on my '06 car.
Given that I would not touch anything with an electronic handbrake or an auto box I may well be running increasingly old iron from now on.
I keep my cars for ten years plus.
@@ColinMill1 Agreed, Last car I bought was at the start of the GFC (2008) I bought a 2004 Jaguar X-type 3.0 AWD for roughly 1/3 of it's new price. Still have it today, still use it as a daily car. has never given any significant problems. Just runs and runs.
Thanks a lot once again for such an amazing video 🙏
One thing to keep in mind for folks from the US, at least in my state, is that a trade-in reduces the price of the purchase with regard to sales tax. This closes the gap a bit between private sale and trade-in. You will still get more selling privately, but maybe not enough to justify the hassel.
Excellent vid John, very informative, keep safe and keep up the great work of informing us muppets.
That last sentence could be your Rock Anthem, John. “And Baby, that’s how you beat depreciation”. Mind you, I’m struggling to rhyme with “depreciation”. Hang on, Appreciation! Yessss.
Good advice had my present vechile 17 years don't like putting a new suit on a salemans back
Outstanding !!!!! Learned so much .....
For me, the best strategy has been to find a one or two year old model that has a CPO warranty from the manufacturer. You can get a nearly new, typically low mileage car, with a warranty that in come cases is better than the original, depending on the brand. AND negotiate the price. You might not be able to get 15%, but you should be able to approach 10%. Lastly, and this is highly personal... depending on your particular needs and tastes in cars, you might want to research what models are NOT selling well. Dealers are willing to offer a larger concession to rid themselves of lot queens. If you can find an oddball model that fits your needs and tastes, you might be able to get 15% or even more off their asking price.
Hi John,
Great explanation and clarification of an 'Elephant in the room' scenario when buying a key item of great cost - including vehicles. Another area that someone could get caught in is via finance. I purchased a car that's on your list in Jan 2019, after 13 months of ownership it was involved in a crash - rear ended. I was paying 'extra' payments on the small loan I had - took advice from financial advisor to finance the car. Anyway, I could have been $20k out of pocket if the car was written off.... The insurer would have paid out the finance company - however I would not have been given back any 'additional' payment amounts over the period - the insurer would have just said 'thanks' for helping us out. Now what I should have done was keep paying the minimum I had to whilst I have a new replacement up to 2 yr clause, in the policy, then possibly paid out the vehicle after this expired. Which then becomes agreed or Redbook or whichever it will be named on the policy.
Thankfully the repairer was terrific to work with and did a truly excellent job of the repair and paint match ($16k) repair on a $68k vehicle (13 months old 8k km).. that I rang the finance company and paid out the $32k owing. 4 years early, I then renegotiated the 'agreed' value with the insurer and had an additional 12 months added to the 'new' car clause, plus reduced the insurance premium because of there being no finance.
A lesson learned that could have been costly. Could be worth a video...
Thanks again for the great content John.
Finance doesn't affect depreciation. The video is about depreciation.
Greetings from Retardistan (Khali-FOR-nya as Arnie would say) from a recently retired fellow engineer (Aerospace in this case). Love your channel.
18 year old Toyota Highlander FWD with 253,000 miles (that's ~407,000 km in Shitsville) and still going strong.
Thank you very much, B. I hope you endure the fires (I feel what you're going through - we had that 6mths or so ago...)
Excellent video, one of the best I've seen recently. 👍🇬🇧
I bought a 2004 Honda DX new. It still runs great. 200,000 miles.
I have never ever owned a car that has depreciated. I only buy second hand cars that will become classics in a mere twenty or thirty years.
Thanks John, another quality video! 👍😉
Hi John, is that a number 2 morse taper 16mm drill in thy hand !
In other words, be disagreeable (in relation to hack #1).
As always, great advices, Mr. John! Thank you for sharing your insights on this matter!
John, another exception to naming your car..... Meet Christine 🔥🔥🔥
Thanks John, Such a useful breakdown, purchase price can really make a difference here.
Love the drill bit
Good data...thanks over my many years of buying and selling cars I have a general rule of thumb.....around $100,000 car dep $15,000yr $60,000 about $10,000 yr sale after 5 yrs
Another very informative for the people John, but whats the likelihood of dealer giving a discount of hot/new models like the Sorrento?
Excellent explanation of common sense.
Best buy is probably to purchase a second hand three year old car that was leased before as probably well maintained and in good condition and might still have two years manufacturer warranty on it.
Couldn’t agree with you more in regards to your commentary on spelling and grammar.
I know which job applicants get interviewed...
Did you use Google Translate for that email?
I agree, it jumps off the page/screen, and employers make an immediate note and make decisions accordingly. Employers want the best they can get for what they are willing to pay. Do not make comments in capitals, and shout "FACT".
Yes do your best at School, it really pays off in the long run.
Just checked to make sure no spelling mistakes.
@chris younts Irony?
Well, not everyone finds the easy way up, At least the guy put himself out there. I believe encouragement would be the better course.
Great informative vehicle John. It has given me a few things to thing about as I contemplate getting rid of my shitbox (land rover) for something different..
Hey John awesome video. Thank you
interesting to see what affect depreciation prices will do for the pre- nissan tritan ...
Ooh is there a reason why we don't see 9 seater SUVs as much?
Maybe front bench seats that can seat 3. 3-4 in the back and 3 in the rear seats? Is there like a trade/manufacturing standard that limits the seats to just 7 seats?
Another good one, John. Thx
Hi John. Thank you for your informative videos. I would appreciate your advice. We bought a used Toyota Prado VX 2018 earlier this year at a reasonable price thanks to timing with COVID. We love our car and it has the built in DPF cleaning button. It is working well and because of our location in the country it gets to the speeds it requires to maintain the filter. We recently received some correspondence from a class action lawsuit regarding Toyota’s negligence. It is free to join the action, but I’m not sure this would apply to us. What would you do?
Excellent, thank you John.
Really appreciate the social commentary around the 9 minute mark. Normalisation around punching below where any full-faculty person in a developed nation should be is getting tiring...
Only been subscribed a week John. I’m loving your channel and humour and I’m educating myself in the process !
Awesome John, thanks.
Excellent work.
Thanks John 👍
Thanks, g. Say hi to your parents, Mr & Mrs bro, for me.
Another great example. I'd like to see a mini version with the bum kicking at the front of the video. Thanks for the information
Hi John,
I see that you suggest that when buying a new car through a car dealership that we should be able to get a 10% discount of RRP but I used your service to broker a deal for me and this figure wasn’t achieved . Our consultant worked hard and exhausted all avenues ( dealerships) but only saved us approximately 4%. We were happy with the price but am surprised to hear that you think it should be a lot better .
I'm talking generally, Terry - there are a lot of variables.
I understand; 10-15% is a pretty big discount in any scenario and I wish we could have been able to achieve that much - if a broker can’t get close to that then it’s pretty tough for the average punter to achieve .
I realise that you are just showing general examples but it’s hard to imagine getting such a good deal .
Love listening to your advise and recommendations ; plus the great entertainment as you do so
John - looking at buying a new car around Nov/Dec and would love to see a segment on the current state of play of the car industry. With Corona, varying levels of lockdown across the country and a reduced supply into the country, it seems like the normal rules of snagging a bargain might not apply in this time?
IF John had used the MY17 Sorrento from Redbook the numbers are significantly different
New $58490 T $32,850 56% P $38750 66%
Hi John, An idea for a future show could be 'Selling Privately'. You could cover in more detail things you mentioned today on the subject. For example, the best way to handle the "can I drive it" request which could be a minefield for the uninitiated. Personally, I've always said you will drive it when you hand the cash over (or similar). In other words, buy it and if it doesn't drive as well as I say it will oir as good as it looks I will hand your money straight back. This is because if they crash it then a world of pain and inconvenience ensues. Other aspects include: how to handle the funds exchange. WHERE to meet and why. What should and what should not be SAID by you, the seller. best way to present the car. How to combat any objections the buyer may have. Of course, we are all sellers and/or and buyers at some point so the whole process has to be fair all 'round. I'm not suggesting you do a video on advanced selling strategies but maybe just a 'Private Sales For Dummies' vid. Just my 2c. Thanks for another great vid today - very interesting content! Love your clear and concise layout on the white paper board - very well displayed/laid out.
Something I always found interesting about how people react to new car depreciation. They buy a new car; fork over all that money, and then are somehow hurt and offended that several years later they don't get 100% of their money back.
Number 1b John.
Always pay cash if you can! Cost of ownership goes up considerably when you finance. Hard to bargain with the dealer on discounts.
You pay higher insurance premiums if the vehicle is financed.
@chris younts 🇦🇺 Our son got a $200 pa reduction on his premium this year when he paid off his car loan.
@chris younts they consider the insured vehicle as having two owners, ie. Higher risk. Australia is an expensive place to live. There are hidden charges and taxes on most things.
When you buy a new car in Australia.
1/ GST and sales tax
2/ Luxury car tax (if purchase is >$46,000)
3/ Dealer fees and charges
4/ Pre-delivery fees
5/ Ming Mole extras like special paint protection.
6/ Extended dealer Warranty.
7/ etcetera, etcetera.
Adds up to many Thousands of dollars.
9:30 Subscribed at this point. Not only learning about cars, you'd be learning about life here.
Thanks for this John. I now know the drill.
Love this channel 🤠
Great advice. Here in New Zealand, Toyota project the 'drive happy' mantra of fixed pricing. Is this BS or is there always enough room to negotiate the outcome?
RemueraChiropractor . When you buy a new Toyota in NZ you are buying it direct from Toyota NZ not from the dealer. Hence the fixed price because the dealer hasn’t added their margin. Where you will get stung is on the trade-in.
For all brands, the starting point for depreciation is the lowest price they sell that vehicle for, normally the fleet price. This can be 20% less than the RRP.
The missus had a 2008 4x4 Pathfinder and it randomly went into limp mode when going from 2nd to 3rd gear. No fix, no warranty, lucky she was able to trade it in.
Hi John
Is there any chance you could do a review of the new MG. My Dad who's in his Eighties is looking at one says it's his last new car.
Thats all fine and good, But I want him to be safe and secure in his new purchase. Any advise would be helpful.
Regards
Dave
Hi John, any chance of getting your hands on a new Pajero Sport and letting us know your thoughts?
John, I was looking around an Aussie car auction site the other day, a Maybach that sold new for $1.1 million in 2007 was at the current bid of $92 k that’s not to bad depreciation in 13 years $1 mill, oh dear!
Hi John, here is my way in a nutshell:
Buy 3 or 4 years model - most money car loosing that time
Spend some time on studing reability reports - if car have known issues price will drop rapidly
Buy car for longer period of time (at least 7 years) because you will always loosing money during ownership (except you bought Bugatti Chiron or McLaren Senna...)
Buy car that fits your needs (size)
Buy highier standard quality in interior and usefull things (eg. towbar) not super flashy in advertisment "I use it once" stuff (autonomous parking).
Do not go for a leasing
Do not go for big debt credit
Auspost and TNT would have to be the automotive service equivalent of the shipping system. I am astonished of how good a service I can get from anything in Murica.
The 25g Parthfinder got me... 😂
Excellent fuel consumption.
Wait a minute, but if you hold onto your car longer don't new car prices increase during that time as well? BTW, the last two times I've sold privately its ended up that dealers have bought the car (at my asking price).
Well researched video: you could have pointed out at the end that your service helps with #1. I was surprised that Toyota didn't have a standout result here. Perhaps because you didn't compare Prado ? I would also suggest that the premium models depreciate more. For example when a tight ass like me is looking for 2nd hand corolla with 70k on the clock the sportivo isn't worth any more to me.
Good call on basic grammar and the inability to speak, read or write like a functional human.
It is very important.
@@AutoExpertJC Have you seen who people vote for?
Also, there are some people who should never turn spell check off.
Trouble is a lot of (particularly older) people are semi-literate whether they like it or not, and pointing out their shortcomings in this way is likely to put them off communicating online which is a real shame. Also, glass houses and all that -- "data" is plural.
@@TheSpoovy Re "data"; it is now common to treat it as a collective noun -- like" heap." E.G. That IS a heap of crap.
3 years is too early to sell a car, imho. If you're someone who takes care of the car you have and don't drive too much, you're selling an almost new car for the price of an old one at the point. And what are you getting in exchange? Pretty much the same car, with some fresh chemical smell in it.
4-5 years is what looks more reasonable to me. The car is just starting to get old at that point, there's probably a new model out there, some new tech has come to the market, and you feel like you're buying something new, something better.
And even if technically you're selling the car at a much lower price, like John showed, your weekly cost is in fact better.
True. Sometimes there are step changes in design. Other times it's much the same with new styling. Worse still, they occasionally spoil a good model.
Anything is worth what someone is willing to pay for it.🤗
Here in Neverland, private sales are not as much of an advantage because of taxes. When trading old for new with the dealer, sales tax is based upon the difference between the value of the old car vs. that of the new. If I trade the old at 30,000 for the new at 60,000, I save 2400 in taxes (at 8%). That may well equal the difference I would receive from a private sale and without all of the hassle. Of course, government prefers the private sale since it receives tax on the sale price of the old car from the old car buyer and also tax on the full value of the new car from me.
I try to keep cars 10-15 years if possible. But the only way I can do this is to do my own repairs and maintenance. The only major repair I did not do was the rear main seal. I figured on my wife's 2005 Sienna, I saved about $10,000 USD on repairs compared to dealer cost , between the last 150,000 to 210,000 mile leg of her life. The recent repair was estimated at $6000 USD and required a new Cat / Head Gasket and other repairs to the Flux Capacitor. So we decided to bite the bullet and trade it for $1000 to buy a 2 year old Forester, for about 30% less than retail for a new 2020.
Overall I can't complain 8 times around the world in comfort with 3 kids as far apart as possible with 3 row seating. Our car was named Sandy, in car years she was 15x6=90 years old...may she rest in peace.
BTW...Great Video
Which Ming Mole are you drilling with that bit?
Anyone who needs drilling. I'm all about the equality.
If you want to see a depreciation disaster, have a look at Alfa Romeo. Yikes!
Great video, John.
so i got my kia stinger gt 2019 my 20 in nov and plan to keep it for 15 years plus i got it for 63k with the bi module and i think new it was 68k plus 3k for the bi. so ive saved a fair amount so my depreciation wouldnt be next to nothing?
Don't worry about me. I named my car Luseall (luse all over) She hasn't depreciated in the last 10 or 20 years. Every once in a great while I still have to make a payment at the auto parts store but it is never over a couple hundred dollars and not very often.
Just brought a 2020 reg cupra ST300 estate be nice if in the future you get to do a honest review thanks mate
Also don’t spend money on fixing cosmetic blemishes that don’t really bother you because you think it’ll give you a better trade in price. The dealers have professionals that will fix up the body and interior for next to nothing and in no time. Similar with private buyers, just be honest that you’re selling the car as is and have taken X amount of money for the damages. For calculating X I recommend taking the actual quote from a repair shop and dividing it by 3.
Also show the buyer the appropriate ChrisFix videos to convince them it’s super cheap and easy to fix it yourself. 😉
buying low mileage 12 months old and keeping it longer usually works out better. in 2005 I bought a 1.9tdi fabia 12 months old for 6.5k....ran it until 2018 and got 1.5k with 70k miles on it....think it was a 9k list car when new
55% retained value after 3 years based on MRSP and trade in is amazingly good. New cars depreciate exponentially, if you can't stomach that buy a car 3 years old. New cars are also sometimes less reliable than a well looked after used car.
Thanks for the research ideas. A conclusion I've arrived at is- buy a low mileage three year old private party car and hold it for two years. Negotiate $3k off the private party price. And sell it privately. So a Sorento buy at $38800 and sell at 58% of $58,990 for $34k. cuts the cost of depreciation to $46/week.