d3matt
Member Since: 11 Jul 2005
Location: Oxfordshire, UK
Posts: 730
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Interesting article from Carkeys website at http://www.carkeys.co.uk/news/2006/march/09/8787.asp
The price of an average year-old prestige brand SUV is now 7% lower - the equivalent of £2500 - than it was 12 months ago, according to new data published by EurotaxGlass's. Wider availability in the segment is given as one of the main reasons, along with falling waiting lists for most new models.
Analysis suggests that a year-old Volvo XC90 D5 SE automatic is worth 11% (£3450) less than an equivalent car would have fetched in March 2005. Equivalent statistics are 9% (£3550) for a BMW X5 3.0d Sport SE auto and 5% (£2225) for a Porsche Cayenne S auto.
"Residual values for prestige SUVs are finally falling from the high levels that have prevailed for the last 36 months," says Richard Crosthwaite, Prestige Car Editor at EurotaxGlass's. "The good news for existing owners is that we now expect to see rates of depreciation for these cars level out, and they will still outperform most other prestige car segments."
If you're buying new and don't want to suffer from falling residual values, there are things you can do about it. "Without exception, the vehicles that perform best in this segment are the diesel variants, and they will continue to do so," says Crosthwaite. "Resale prospects are also aided by a good metallic colour, automatic transmission and satellite navigation. The absence of satnav alone can take at least £2000 off the trade price of a 12-month old prestige SUV, with a similar sum deducted for a manual gearbox."
New premium SUVs are arriving on the market all the time - the Audi Q7 will be available soon, for example - and this means more supply, which in turn means lower resale values. But EurotaxGlass's reckons that the increase will be "modest" for at least the next 18 months. "It is therefore my opinion that supply issues will not adversely affect values to any significant extent," says Crosthwaite.
"However, it must be remembered that patterns of demand in the prestige market are very much driven by popular tastest, so significant new arrivals will accelerate rates of depreciation for models that are at a more advanced stage in their product lifecycle." Matt
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RRS ownership for 1 yr, then D3 for 2 yrs. Then cut back to old bangers and working my way back up through two Peugeots in 6 months. Now got Saab 9-5 2.3t and enjoying the performance!
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Tue Mar 14 2006 9:40pm |
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