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Rod
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Rod
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I do know I'm on dangerous ground again. Let's assume we talked about Fiat. One group prefers high residuals, as do the manufacturers. A second group is interested in low residuals. The reason is they want to buy a cheap car. The lower the residuals the better. The third group doesn't care whether residuals are high or low. Where is the problem?
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Mr Fezza Talk Morgan Expert
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Mr Fezza Talk Morgan Expert
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50% at 3 years is bang on the money for a decent mid range BMW / merc / porsche etc. Simon says a porsche will retain 60%over 3 years - but wothout options - and you try selling a C2 with no options for 60%!!
From the perspective of other luxury cars. A ferrari 456 at an original price of 160k would easily be down at 100k trade in after 12 onths. The V8's hold their value better usually - 430's are holdding reasonably well at the moment - but once the new model arrives ever 4-5 years then the old one drops like a stone to 50% or less. And god forbid you have actually driven it!
I bought my Maserati 3200 (02plate) in 2003 at 8k miles. New, the car (fully optioned) cost in the region of 72k (I have the recipt somewhere). I paid 39.995 for it. you cna work out for yourself what the trade in was...
Then in the subsequent 2 years I owned it, it cost me approx 18k in running costs and dropped from 40k to 22k at trade in time - privately I might have managed 24k at best.
Great car - loved it and one day I'll find it, buy it back and restore it. But for now I'm glad to be in an Aero, it has class and style and inddividuality and to boot it's probably the cheapest car to run in this class by some margin in my opinion.
I'm not a purchaser of new cars though - I just buy on condition - age is generally of no real importance with most modern metal.
Last edited by mr_tony; 27/11/07 08:20 AM.
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Talk Morgan Guru
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Talk Morgan Guru
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50% at 3 years is bang on the money for a decent mid range BMW / merc / porsche etc. Simon says a porsche will retain 60%over 3 years - but wothout options - and you try selling a C2 with no options for 60%!!
Rich, it would need to have SatNav (PCM) - without and you're right, the car would stuggle - other nice to haves (which will allow you to keep closer to 60% than 50%) are PSE (Porsche Sports Exhaust) and Sport Chrono. Porsche have worked consistenly since the 996 to improve their retained value as this was the point where they started to drop. While the 993 was good news come sale time, the 996 wasn't so. The 997 is gaining ground but you're right, you can't avoid putting some costly options on to ensure strong resale value.
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NGUNS!! Part of the Furniture
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NGUNS!! Part of the Furniture
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Am I missing something here? a $76k return, at auction (and an Ebay auction at that) after 2 years on an original retail price of $120k (pls correct me if I am wrong Sure. Happy to help. (120-76)/120 = 37% loss. In my eyes that is a residual of 63% not 40%. Not trying to be pedantic but that is a big difference and needs highlighting. you had to wait 6 years for a new car. 12 months is more than enough in my book and I would definitely not be bothered if that were the current waiting list. I would. Lets celebrate our differences as it would be so boring if we were all the same. I wonder how many others would though? Of course I appreciate many did. Everything you enjoy costs money. I am prepared to pay for my fun, BtG Absolutely agree. I have paid more than a new Aero on each of my cars. Love them both. I have no budget when it comes to Morgans. However, others do (in a special way). Lorne I am sure not many are as extravagent as you seem, but I re-emphasise anyone who expects 'free' motoring is mis-guided. There will always be the odd exception I'm sure. BtG
Cheers
BtG
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Talk Morgan Regular
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There is obviously some confusion.
The premise, offered by Phil, was residuals. Morgan was once famous for the highest residuals of any marque everywhere in the world for decades. Historically, the new mog buying decision was greatly eased by that. New car problems and their sorting issues were overwhelmed by the simple thrill of actually being lucky enough to get a new Morgan.
Yet the old fact of high Morgan residuals has disappeared in many countries, the UK notably one and the US Aeros being another, though solid residuals still exist in many countries. One can also postulate that this new trend that could continue lower. Arguments that Morgan residuals are now "no worse" than other cars don't address any of these issues and are likely defensiveness or a delight in lost value.
Certainly, as an academic exercise, it would be more fruitful to try to figure out what is happening and what, if anything, can be done to stop it. However, if the subject is uncomfortable to a few people, it can be dropped here. There is no wish to discomfit anyone.
Lorne
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Talk Morgan Enthusiast
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Talk Morgan Enthusiast
Joined: Sep 2006
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There is obviously some confusion.
The premise, offered by Phil, was residuals. Morgan was once famous for the highest residuals of any marque everywhere in the world for decades. Historically, the new mog buying decision was greatly eased by that. New car problems and their sorting issues were overwhelmed by the simple thrill of actually being lucky enough to get a new Morgan.
Yet the old fact of high Morgan residuals has disappeared in many countries, the UK notably one and the US Aeros being another, though solid residuals still exist in many countries. One can also postulate that this new trend that could continue lower. Arguments that Morgan residuals are now "no worse" than other cars don't address any of these issues and are likely defensiveness or a delight in lost value.
Certainly, as an academic exercise, it would be more fruitful to try to figure out what is happening and what, if anything, can be done to stop it. However, if the subject is uncomfortable to a few people, it can be dropped here. There is no wish to discomfit anyone.
Lorne I would not worry about it Lorne (it's usually me that does all the worrying anyway)  I agree with you on the history of where the mark used to be. I am not as sure it is as black as you might think in the UK but there is definetly a change. However what Andy/Rich are trying to point out is that without any pre knowledge of Morgan residuals in the specific case of UK Aero it is no worse than simmilar high performance models. From the perspective of a new to Morgan Aero owner the car is more evaluated on it's real performance/comfort/looks etc. I dont thin these 'new' buyers are attracted/aware of the previous residual value that Morgans achieved over the years  I guess to them then it's not an issue and it's not a bar to Morgan selling Aero's to this new type of buyer.  (Now I really do need a coffee  )
Phil Egginton 1979 4/4 4 seater
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Rod
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Rod
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I guess to them then it's not an issue and it's not a bar to Morgan selling Aero's to this new type of buyer.  (Now I really do need a coffee  ) Do you think low residuals might be a bar for the old type of buyers to buy a new Morgan?
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Talk Morgan Enthusiast
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Talk Morgan Enthusiast
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Do you think low residuals might be a bar for the old type of buyers to buy a new Morgan? Depends.. it's certainly a factor to consider. It also depends upon how long you keep it for. If you buy a new one say every ten years then the effect may not be as bad as say every 3.  So why have trad residuals got worse 
Phil Egginton 1979 4/4 4 seater
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Mr Fezza Talk Morgan Expert
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Mr Fezza Talk Morgan Expert
Joined: Oct 2006
Posts: 2,825 |
surely it's basic market economics.
the potential ownership group for buying new / second hand is still relatively small and possibly shrinking (age / fashion etc)
the pool of available vehicles is ever growing as the factory keep on churning them out.
Greater availability and shrinking demand mean that prices inevitably fall.
Surely it really is that simple?
I'm in no way sayiung that the trad market is in danger or anything like that, and I don't know the numbers involved - but if prices are falling and availability is increasing (even only slightly) then demand must surely be down?
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Talk Morgan Regular
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Talk Morgan Regular
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One group prefers high residuals, as do the manufacturers. A second group is interested in low residuals. The reason is they want to buy a cheap car. The lower the residuals the better. The third group doesn't care whether residuals are high or low. Where is the problem? High residuals are desirable to all buyers at every level. A new buyer likes to know he is not going to lose money and a second hand buyer like to know he is not going to lose money. High residuals also make the repair/restoration option viable. Why repair/restore something that will be unsaleable. It is no surprise that it is a wise investment put 10,000 GBP into a Morgan Three-wheeler that cost 85 pounds originally. In the States, $25-40k into a 1964 Plus 4 is common. High residuals have made preserving the marque sensible for 100 years. I can't see is much in an argument whether high residuals are good for a tiny marque or not. The question is why they are disappearing in some moggie areas and models. Lorne
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