4 Year+ Depreciation & Negative Equity

Blackbat · 02-04-2022, 03:34 PM

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.

No one · 02-04-2022, 10:15 PM

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!!!".

02-04-2022, 03:34 PM	#1
Blackbat Registered 4 Rep 4 Posts Drives: BMW 118i M Sport Shadow Editio Join Date: Dec 2021 Location: UK iTrader: (0)	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.
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02-04-2022, 10:15 PM	#2
No one Major 1037 Rep 1,340 Posts Drives: F21 118i Join Date: Oct 2014 Location: Undisclosed iTrader: (0)	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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