Talk Morgan Forums Community The Malvern Arms Morgan Depreciation

In this depreciation survey Morgans do well - but I am surprised it is still so high.

Looking at second hand values - I am sure they are higher and as time goes by they retain their value maybe like a 'U' curve.

By lovemoney.com, Sep 4, 2012
Filed under: Motoring, we find the best and worst new cars for depreciation.

Choosing a new car is a complicated business, as you must weigh up fuel economy, car insurance premiums and road tax, as well as the ongoing expense of maintaining, servicing and repairing your pride and joy.
What's more, many buyers forget the most important – and expensive – bill for running a car: depreciation. This is the tendency for resale value of cars to fall over time. Generally speaking (and with the exception of classic or vintage models), older cars are less valuable than new models. In effect, this loss of value over time accounts for ageing and wear and tear due to use.
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Typically, the biggest loss due to depreciation occurs in a car's first year of life, when it flips from being brand new to having had at least one previous owner. Therefore, the steeper a vehicle's depreciation, the more you lose during your period of ownership.

As you'd expect, different makes and model of car depreciate at different rates. For example, winners in this category can lose as little as 45% of their list prices in their first three years. At the other end of the scale, a motor can lose four-fifths (80%) of its value in just 36 months.

Ten depreciation stars
To show you these differences in depreciation, I tracked down a report from Auto Express, one of the UK's leading motoring websites. Using data gleaned from industry experts CAP, Auto Express has produced a list of the cars that hold their value best – and worst.

Here are the 10 new cars that, bought today, will hold their value best over the next three years, assuming mileage of 30,000 miles between now and August 2015:

Car
Depreciation
Porsche 911 Carrera Cabriolet PDK
44.7%
MINI Roadster Cooper SD [Chili/Sport/Media Pack]
45.0%
Ferrari 458 Italia
46.4%
Morgan 4/4 1600 Tourer Sport
47.2%
Mercedes A-Class A180 CDI BlueEFFICIENCY AMG Sport
47.7%
Audi A3 1.6 TDI SE 3dr
47.8%
Mercedes SLK 250 CDI BlueEFFICIENCY Auto
47.9%
Porsche Boxster 2.7 PDK
48.1%
Morgan Roadster V6 [4 seats]
48.2%
BMW M135i M Performance 5dr
48.3%
As you can see, this table mostly consists of upmarket or high-performance cars, including an Audi, a BMW, a Ferrari, two Mercedes, two Morgans and two Porsches. However, the list also includes the popular MINI Roadster .

Nonsense, obviously.

Shame they didn't show the real market. They're probably about right for the Porkers, can't comment on some of the other 'supercars'.
The MINI looks to be too high by 20% and as for the Mogs, well, what a load of tosh! (We need a dustbin, or garbage can, smiley )

These stats are probably put together by computer, on the basis of Morgan = sales volume too low- therefore use average.

As others have said the real world does not bear this out and perhaps just as well, the Morgan secret might get out.

Real world example. Morgan 44 sport purchased Jan 09 for 26K
sold to dealer 6 months later 26K. Not sure on the percentage loss but it wasn't anywhere near 50%.
Same car sold for 27.5k and is probably worth something similar today. The 44 Sport was at the lowest price end of Morgan products and is perhaps the end least likely to see significant depreciation in the early years. Roadsters and Aeros will have a genuine loss but the curve of appreciation as new car costs rise bring some values up again, probably due to the scarcity of these cars.

morgan 4/4 from jun2000 buy in 2004 38000 euros sold 35000 euros
in 2011

I think they lose something like 20% over 3yrs.
This flatens out over next 5-7yrs so within 10yrs depreciation crosses with inflation on the curve so value and original price is similar.

How does this Depreciation info compare with the Insurers 'Guaranteed Value'? spread over the 3 years?

Our first 4/4 traded in after 1 year for 0% reduction.

The Roadster Guaranteed Value was reduced from £42.5k to £39k after 3 years? Mileage does not come into that one.

With a Morgan how are the 'Extras' over the 'Basic Price' treated when they are making these 'Depreciation' and Guaranteed Value' valuations?

The Roadster 100 'extras' at purchase were worth about £3800.

Even with a Morgan there is the "I must have a new car" element of depreciation. i.e. some people want and will pay the premium to have a car from brand new (and with a Morgan, the pleasure of having an exact specification and following the build).
However where Morgans differ from any of the cars in that list is how the value levels out very quickly.
For example a new +4 will retail at around £40,000 dependent on specification. Once registered and with a couple of thousand miles that car will be valued at around £34k to £35k, but it will then only depreciate very slowly over the next few years.
My 4/4 was 2 years old when I bought it in 2005, it now has 30k miles on the clock and has a value very similar to what I paid for it. (approx £20K)
In contrast the Audi TT I sold at a similar amount, to buy the 4/4 is now valued at about £5k

You pays your money!

Bud

__________
2003 - 4/4

I would have been happy to buy second hand - unfortunately the 3.7 Roadster is too new to have many examples around.

I suspect it will lose a fair bit, but, as above, it will flatten out over time.

I might also have it for many years, reducing the pain!

On the bright side - it old have been a lot more painful if it had been a v8 or an Aero.

I suppose it''s all relative.
'