Understanding residuals

[Racer7]

My reservation is in. Hopefully will be in the first batch.

The only thing I don't understand is residuals. Especially when I read here people have been selling on for more then they have bought.

So would I be right in assuming the only way that would happen. Is if you bought used? Because it seems like most EVs drop 20% from new to used (using Parker's as a guide).

I'm still wondering whether it's worth holding out for the AWD version (hopefully with pano roof and bigger wheels). Or if there is a way that residuals work that I can loss limit a potential switch to from a day1 purchase to the AWD version come late March?

 

[Fokmg]

Don`t get to worried about residuals its inflation that really counts
May last year My brand new MG5 SR Exclusive cost me less than £23k
Today after 16 months use it is still worth more than I paid in £ and Pence,
a new replacement is 30K plus (ok LR versions) at the moment.
What we are seeing is a repeat of the 70s in car prices. Rest assure that behind the cloud of apparent negative depreciation on your car there is still a real loss in value and once the demand and supply becomes more balanced there will start to be significant losses in the value of a used vehicle.
If you are lucky with your selling and purchase you may not apparently loose much but there will be burnt fingers !!!!!

 

[Ron61]

Don`t get to worried about residuals its inflation that really counts
May last year My brand new MG5 SR Exclusive cost me less than £23k
Today after 16 months use it is still worth more than I paid in £ and Pence,
a new replacement is 30K plus (ok LR versions) at the moment.
What we are seeing is a repeat of the 70s in car prices. Rest assure that behind the cloud of apparent negative depreciation on your car there is still a real loss in value and once the demand and supply becomes more balanced there will start to be significant losses in the value of a used vehicle.
If you are lucky with your selling and purchase you may not apparently loose much but there will be burnt fingers !!!!!

Hi Fokmg, Spot on, the old difference between price and value, not many people understand it.