02-04-2022, 03:34 PM | #1 |
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4 Year+ Depreciation & Negative Equity
I'm coming to the end of my PCP contract and weighing up whether to keep my current 2018 118i M-Sport.
I'm siding on taking a low interest loan out to pay off the pcp balloon payment (approx £11k), but I was keen to know whether the car is likely to depreciate significantly faster after the 4 years of ownership mark, now that BMW services are not a requirement etc etc. Or is this just a myth? Low mileage of only 20k. Only driving an average of 5k miles a year. Worth keeping hold of, or will I likely be paying off a loan over the next 3 years for a car that will be in negative equity by the time it's paid off? Hope that makes sense, and I'd love to hear your thoughts. Thanks in advance. |
02-04-2022, 10:15 PM | #2 |
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Isn't it inevitable that a new car will be in negative equity? I don't know UK car customs (whether people trade houses for cars ), but elsewhere a car is a poor investment (unless it's extremely rare and popular).
Usually, a car depreciates the most once you drive it out of the dealer's. The older it gets (and the less of the price remains ) the slower it loses price and might even have some rise (over quite nothing). Can't you check older 1 Series' price dynamics? Consider ICE vehicles era is coming to an end, perhaps. You've just reminded me a quote from the "3rd Rock from the Sun" (season 3, episode 17, 07:40): "-The car will be paid off in 2073. -It'll be an antique by then. We could make money on this car!". I'd suggest you just keep the car if you like it. If you wish to make a bet, keep it for a few decades, at least to let your children remember you by it: "There were times when he could sell it!!!". |
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