Polestar 2 review (previous gen) and TJA/LKA equivalent

[fnegroni]

The below is from about 14’ into the full video, it talks about TJA and LKA -

Worth watching the rest of the review too. Puts things into perspective. The whole video:

 

[webhiker]

Thx
And a very humouristic approach ??

 

[NLMGSAN]

The depreciation is a worldwide problem. Selling my MG is costing me 16% in less than 4 months...

 

[tsedge]

The depreciation is a worldwide problem. Selling my MG is costing me 16% in less than 4 months...

First year depreciation for most vehicles has always been around 20-25%. The biggest chunk of that is driving off the forecourt where immediately you lose something like 10-15%. Losing 16% over 4 months is pretty standard and not unusual.

If you then sell back to a dealer you often get even less because they will incur costs selling and want to make a profit to make it worth their while.

With my PCP contract I have an MGFV after 4 years and 40,000 miles of £16,500. I will be amazed if the car is worth that much when we get there. It means I haven't a lot of choices if I want to change it early (I will be out of pocket) but at least my max depreciation is fixed if we keep it for the full length.

With all the price volatility I am thinking of leasing next time, although the big downside here is lack of flexibility. Leases are much harder to terminate early.

Hope you have better luck with your next purchase.

 

[Rolfe]

Don't you lose at least 20% as soon as you drive it off, because VAT?

 

[fnegroni]

The original post was about the LKA and TJA but I guess depreciation is something people still talk about…
I don’t understand why though because when I was younger it was kind of similar.
I mean has anyone ever heard of the Audi A8 ?

 

[NLMGSAN]

Year old MG4's lose more than 30% where I live. Don't know what first gen cars do.

 

[fnegroni]

I sold a car I bought brand new for 40% of its original value after 3 years. Privately. Trade in offer was 30%
That was in 2007
It was the norm.

 

[NLMGSAN]

Not my experience. I bought my Auris in 2013 worth a little under 29k. Sold it end 2023 against 12k. Good quality cars still do this.

 

[siteguru]

The past couple of years or so (COVID legacy) have been an anomaly regarding used prices ... back in 2021/22 people were managing to sell their 2nd hand cars for a profit! (Or at least negligible loss). Things are more back to normal now (which the EV price drop scaremongering videos glibly gloss over).

 

[NLMGSAN]

Current 2nd hand prices for smaller petrol cars are still sky high.

 

[tsedge]

Don't you lose at least 20% as soon as you drive it off, because VAT?

I don't think it is a simple as that because dealers can also reclaim the VAT on some things - but I admit I am not up on the specifics.

 

[siteguru]

Current 2nd hand prices for smaller petrol cars are still sky high.

Of course what applies in the UK won't necessarily apply universally.

 

[bobbarley]

I bought my year old Trophy LR and got £10k off vs new. About 30% in the first year. It was a part ex so the seller likely lost even more than that.

 

[Ruislip Resident]

What do people you consider as being underwater at the end of a PCP. Is it
1. Is the money you could sell it for to a dealer less than than the MGFV
2. Could you buy the same car spec from a dealer at a lower price than the MGFV?

Eg you could sell the car with MGFV of £16k for £15k but it would cost you £18k to buy one the same.

I've ignored private sales as many dont like buying or selling private.

 

[tsedge]

What do people you consider as being underwater at the end of a PCP. Is it
1. Is the money you could sell it for to a dealer less than than the MGFV
2. Could you buy the same car spec from a dealer at a lower price than the MGFV?

Eg you could sell the car with MGFV of £16k for £15k but it would cost you £18k to buy one the same.

I've ignored private sales as many dont like buying or selling private.

Depends what deposit you put down too - if you've lost that you are underwater.

My definition is: being able to trade the car in and have it worth enough to give you the same deposit on your next purchase as you put down on your original PCP.

I think I am going to lose my deposit on the MG4. That's ok though, I planned for that at the beginning (I was pretty sure new EV prices would drop a lot over the 4 years and I just wanted an EV!)