Here's how I see this.

Using LR as an example. I believe the depreciation on an FL2 over the first year is around 50% of it's original value. (Based on FL2 SD4 XS). I would welcome constructive comments and figures from those who know more about such things than me.

I'm currently looking at 2009/10/11 FL2's on dealership forecourts, for between £19,000 and £23,000 (ish). A year ago they were originally sold for £30-35,000. Dealers pay about £4,000 less than the advertised forecourt price. This has been confirmed to me by a LR salesman.
(yes I accept that a business must make profit to remain sustainable but the point being raised here is that of depreciation)

So an estimate of around £15,000 being paid for a car now being advertised for around £19,000, which last year cost about £33,000 and I base the 'depreciation percentage loss' on this. There's probably a 'technical term' for this?

That's an asset which depreciates in value over time. I've been told by four different dealers that "mileage doesn't make a huge difference to resale value". So with this in mind, if I bought it and kept it in storage for a year, I lose around 50% of it's original sale price on a current model, because of time/ its age!

I think that's about right? Whereabouts unknown stop going to follow stream until reach civilisation stop message ends

I think 50% over 12 months is a wee bit too high.

I bought my FL2 in 2007, over the 3 year period I would have kept it, it would have lost 45% of its purchse value.
I traded it in for a D3 which cost £31,500. 13 months later I traded that on for a D4 and got £30,000 px, so I only lost £1500 on the D3. ______________________
2011 Full Fat RR 4.4 TDV8
2012 FL2 SD4 Auto HSE
2013 Kawasaki Versys 650

Hi Dave,

Thanks for the reply.

Do you know how much your car depreciated in the first 12 months?

I based my thoughts on what i've seen year old FL2s advertised for on LR forecourts. If a £33,000 car which is around a year old reduces in value to a trade in price of around £16,000 and then has another £4,000 added by a dealership for whatever they have to do to it, plus their profit margins, that's not far off what I calculated. Whatever the amount, it's still a huge depreciation.

Of course, this is not LR specific. I bought my Merc-Benz at a year old from a MB franchise dealership for £23,000. It was around £32,000 new. Similar depreciation values. I'm now selling it for £18,995, after owning it for about 7 months, in order to possibly buy a FL2 SD4 XS.

Have I miscalculated something? Whereabouts unknown stop going to follow stream until reach civilisation stop message ends

Depreciation is always more in the first 12 months but I still think working on 50% is a wee bit too high. Prices I've seen cars advertised for work out at approx 30 - 35% drop in the first 12 months. ______________________
2011 Full Fat RR 4.4 TDV8
2012 FL2 SD4 Auto HSE
2013 Kawasaki Versys 650

split from sponsors for sales thread

I paid £22,000 4 years ago for mine. 4 years later i'm px mine in for my evoque for £13,500 pretty good i think. Freelander2 GS TD4 Manual in Lago Grey .Roof Mount DVD 9.2''Screen~Window Tints~Parrot CK3100 Bluetooth~Retro Fit Sony Satnav~iPhone Dashmount~Side Steps~Woodco Armrest~Mudflaps~Land Rover Sunglass Holder~LED Interior Lights~Private Plate.Evoque Collected 17th Sept 2012.


Also Audi TT Roadster.

50% way too high!

MY 2008MY was £36K new, 3 years later was on a forecourt for £22K, assuming 4K profit margin means it was worth £18K, thats 50% in over 3 years!! Depreciation is higher from new but levels off over time. MY SD4 new was £36K, 1 year old examples are on the web for £32K so assume £28K trade in value, thats a £8K loss which equates to 22% depreciation over the first year.

paid £6300 new for the wifes old car got £2500 for it 7 years later thats good value for money

too true npinks! I paid £6500 for my wifes car when it was 18 months old, when new it was £13,500! Just had it valued 2 years later and have been offered £4500 p/x, I pity the first owner who took the hit on depreciation!

My car was (according to the dealer) circa £33k when sold brand new with just a few extras like arm rest pack. It's a 60 plate SD4 XS and will be 2 years old in December. The sticker price was £20,495 when I bought it last week.

I don't know how we arrived at the finance figure that suited my monthly payments but I suspect it involved some discount from that price and a decent price for my old car. 60 plate SD4 XS, Stornoway Grey, Arm rest pack

http://www.youtube.com/watch?v=ly--gT1RJdk

npinks wrote:

paid £6300 new for the wifes old car got £2500 for it 7 years later thats good value for money

shilen wrote:

50% way too high!

MY 2008MY was £36K new, 3 years later was on a forecourt for £22K, assuming 4K profit margin means it was worth £18K, thats 50% in over 3 years!! Depreciation is higher from new but levels off over time. MY SD4 new was £36K, 1 year old examples are on the web for £32K so assume £28K trade in value, thats a £8K loss which equates to 22% depreciation over the first year.

kimosabe wrote:

Here's how I see this.

Using LR as an example. I believe the depreciation on an FL2 over the first year is around 50% of it's original value. (Based on FL2 SD4 XS). I would welcome constructive comments and figures from those who know more about such things than me.

I'm currently looking at 2009/10/11 FL2's on dealership forecourts, for between £19,000 and £23,000 (ish). A year ago they were originally sold for £30-35,000. Dealers pay about £4,000 less than the advertised forecourt price. This has been confirmed to me by a LR salesman.
(yes I accept that a business must make profit to remain sustainable but the point being raised here is that of depreciation)

So an estimate of around £15,000 being paid for a car now being advertised for around £19,000, which last year cost about £33,000 and I base the 'depreciation percentage loss' on this. There's probably a 'technical term' for this?

That's an asset which depreciates in value over time. I've been told by four different dealers that "mileage doesn't make a huge difference to resale value". So with this in mind, if I bought it and kept it in storage for a year, I lose around 50% of it's original sale price on a current model, because of time/ its age!

I think that's about right?

Hi Richard,

Thanks for helping me out here. Being able to discuss such things with experienced folk such as you are, as i'm sure you know, is worth its weight in gold. My original desire to figure this out was driven by my need to have as many facts and figures as possible with which to be able to judge a 'good deal' from an okay deal and I got tangled up in numbers. So thank you for putting me straight.

I have been told a few times, by reputable sources, that dealers work with a £4,000 buy/resell budget and what I was doing was using a hypothetical original value of around £30k and a dealership resale value of around £20k. This means that by using these figures, it must have been bought in for around £16-17k.

So with this in mind and all that aside, if you had around £20k with which to buy a used FL2, which version and year would you buy? I have read hundreds of postings on this forum and elsewhere, which have lead me to look at SD4 XS FL2s but without ever owning one, I don't know the real gains over a TD4 XS aside from a bhp gain. (was this achieved by a remap of the same engine?)

If it helps, the chances of me driving any car 'off road' are fairly remote (is 2WD also an option here?) and I want as high a spec and as low a mileage as this budget will allow. It's unlikely that I would drive more than about 10k per year.

Ideally, i'd like to be able to have someone who knows what they're talking about with me when viewing a potential purchase but as I don't know anyone who owns an FL2, this is my only resource. I hope you don't mind me asking.

Thanks. Whereabouts unknown stop going to follow stream until reach civilisation stop message ends

What bells and whistles are important to you on the car?

Do you want..

an automatic or manual box
Do you want inbuilt sat nav
do you want leather seats
do you want a heated front screen

What sort of mileage/journeys will you be doing.

Personally I'd avoid a 2wd unless it was a company car as I would suspect they depreciate more than a 4wd.

I think you need the confidence of which model you would like. Then I would look around the dealers to see which will give you the newest with the lowest price, in the colour you want.

Use LR website for searching for stock options as well as autotrader. Personally I would stick to buying from a LR dealer.

There will be more used stock coming in now as it is trade in time...dealers will want to turn stock into cash.

Richard