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Discussion Starter #1
Hi there, thought I'd drop a note outlining the disaster that is trading a ZT 120.....the car was a great deal at £13000....so I took the plunge and tried not to think about the lack of power...just the good looks, and cruising potential.....after 4 months, I need something smaller, faster and well...more exciting...Can I sell it privately errr...no...not even at £9k....so its part ex time......£8k...and that was like like getting blood out of a stone....for a car that was over £16 new (although now widely available for £12)....that is massive deprciation for the first year. The dealers (and I tried 4) all said the same...nice cars, if under powered, but nobody wants them with all the uncertainty over MG ROVER....so the moral of the story, mkae sure you get the right car, or keep hold of your car for a long time or else you will be stung. And I am aware that all cars lose money, but that is just plain crazy!!!!!!!! This isn't just the 120 though....all MG/ROVER seems to be tainted, which I think is unfair, but sadly the perception of many. Would I be tempted to buy another MG/ROVER....not unless I win the lottery!
 

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Jason

I am with you mate i tell ya. I cocked up last year by buying a brand new Xsara Picasso (for the family like) and i was shafted major. I paid £14000 for the car after part exin a Renault Cab.
I still owe £14000 due to negative equity on the Cab. Oh dear o dear. I am currently in the process of flogging my picasso and my 220 coupe (L reg) and putting a £1500 deposit for an MGZT. Should i not bother then mate.
I thought they wers hit off a shovel (so i was told???)
 

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Discussion Starter #3
Depreciation continued....

Glad its not just me!Mine was the low powered 1.8 ZT which although a really good car is under powered...its nice enough to drive, and handles superb, but if you try to get a bit sporty it gets all strained...and it doesn't like going quickly in first gear either! Npt slagging it off as its a smallish engine trying to pull a heavy car. The other engine options are 1.8 turbo (quicker but some reliability worries and worse mpg), and the V6's...160 bhp or 190. Now the V6's are quick (the 190 very quick), but very thirsty...less than 20 mpg if you have fun! All of them are effected by depreciation though in a big way....so my advice would be to buy one that has lost most of its money. Only look at the 120 if you can live without the power. The ZT is great, real prescence on the road andf lots of character....depending on the way MG go in the next year though it may not be a car to be proud off (do you want to be associated with a failure?). Not wishing MG any harm, but even the MG dealers put down their own products so its no wonder the publics perception is poor!
 

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Buy most make cars from new and lose a packet. Fact of life I'm afraid. If you want to invest buy a house or something. Or a classic car.

Anthony.
 

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'Earth calling Jason.........'


Welcome to the real world!

If you buy any new car and then try and sell it after a few month then expect to get your fingers burnt. It's not just an 'MGR thing', that just the dealers talking crap & giving you an excuse that you can hang on too (standard sales crap 'it's not me guv it's ......). The dealer will probably sell it on for £10500.

Ask yourself, do you really need another car so much that you can take that kind of hit over 4 months?

If you sold this car in a years time you would get £8k. In two years you would get £7k. In 3 years £6k. Compared to selling it now that is seriously cheap motoring. People go on about mpg, insurance and servicing costs but it has always been depreceation that has been the killer on any new car.

I'm sorry Jason, but anyone who sells any car after 4 months 'beacause I need something smaller and more exciting' must have money to burn!

Have you thought about chipping it if performance is an issue?

Just my humble opinion though.


AL
 

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Discussion Starter #6
depreciation...

Fair point Anthony...but as mentioned in my post...there is depreciation and there is MG depreciation!!!
 

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Discussion Starter #7
depreciation ccontinued....

Al, another fair point...and although I don't have money to burn I don't want to drive around in a car that I don't want (lifes too short and all that). Thought about chipping but its not really worth it on the 1.8. My point is that the MG seems to be hit worse than others...not having a go, it was my choice to buy and my choice to sell...just think that the amount lost is more than it would have been on other cars...I lost £1.5k on my Audi A3 which I had before this...over 18 months...
 

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You have to experience other brands to know that what you have with an MG is far from unique.

I had a 4 month old, 3000 miles, Skoda Octavia, which for reasons of house buying I had to change, I paid £13500 for the car and the maximum I could get in part ex, was £8500. I know for a fact that if I had kept it for 12 months I would still have got £8500 for it. The truth is that for most cars, try p/ex them when relatively new and you suffer the whole years/2 years depreciation. The trade doesnt distinguish between a 4 months old, 6 month old or 12 month old, to them they still have to sell them on as used cars with a previous owner, and buyers dont see the difference either, if anything, a buyer would be a little concerned that a 4 month old car has already changed hands - what 's wrong with the car etc etc etc they would think.

All I would say to anyone reading this is, this is car buying and having traded in new-ish fords, Skoda's and PUG's they were all similar experiences to the Rover experience.
 

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Jason B said:
I lost £1.5k on my Audi A3 which I had before this...over 18 months...
Let's get one thing straight, any MG or Rover is not seen in the same league as Audi, if you had done the same with a Focus or Astra on the other hand you would have experienced the same as the MG.

Audi's and VW's and a few others are very different, their dealers can ask premium prices and their buyers will pay them, a rover , ford or Vauxhall buyer will not, and that dictates what the cars are worth.
 

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He has a point

People are right to say that you will suffer bad depreciation particularly in the 1st yr. However it is particularly acute on the Rover because of the uncertainty.

It is a vicious circle; Rover are going to struggle to get people to buy new ones because of this and the lack of new metal.

Lets be honest - although buying a new car is never very rational - your average joe will know that he can get a 2nd hand Rover for peanuts, so particularly in the case of the ZT - most will say ******** to it - let me get a nearly new one and save myself a bucketload of cash if they really want one.

People can slag off the premium brands BMW, Audi, Mercedes - but one of the reason they are more attractive if you have the initial cash is that you know you ain't going to lose your shirt when you come to sell it.

Only thing that will recover residuals is good new metal and some certainty that MG Rover has a long term future.
 

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Frankly, I plan to buy brand new all the way.

Every car that I plan to get will be built to order to suit my tastes (i.e. top of the range preferably) then keep the thing for at least 5 years or 50k miles, whihcever comes first. At least that way you'll get some wear out of it before you let it go for nothing.

Its a shame you are in this predicament as my dad is in exactly the same. You never know, you might end up taking bangernomics. (Buy a car for 1000 quid, make a few mods and sods, then sell it a few months later for 1200...)
 

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Buy a six month old car rather than a new one and save thousands on the list. I've got 12 month old Vauxhall Signums on the forecourt up for just 60% of their original list price. There is a huge gap between new and nearly new, plus a gap between trade and retail that make part-exing a 4 month old car a big kick in the boll*cks.

I gave a punter £9200 for his 04/04 Pug 307SW 5 months after he parted with over 15k in the showroom. Still, he made a killing buying an ex-rental Vectra 2.2 SRI, 4 months old but unused with delivery mileage only for over 6k cheaper than list.
 

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Bazzer_Mcbead said:
Frankly, I plan to buy brand new all the way.


Its a shame you are in this predicament as my dad is in exactly the same. You never know, you might end up taking bangernomics. (Buy a car for 1000 quid, make a few mods and sods, then sell it a few months later for 1200...)
Actually I bought new last New Year - nice Infiniti G35 - 260hp rear wheel drive - you only get them Stateside.

Point I am making is particularly bad with Rover, because of their situation it doesn't make a lot of financial sense and that is killing them.
 

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[Rant]

Ok some of you will already know my opinion on depreciation. All I'd like to say is this:

01 1.0 Corsa - Paid £7,500 - Part Ex Value £5,500 after 1 year against .....
02 ZR 105 - Paid £13,500 - Part Ex Value £9000 after 18 months against .....
03 TF 135 (with loads & loads of extras) - Paid £21,500 - Sold back for £10,100 after 16 months.

Explain those figures to me. Now I know I could have gotten £12,800 part ex against a ZR but the dealer deducted £900 to fix some damage to the car (paint only) so you're talking £12,000 after that. I'm bound to get less when selling it back to the dealer and not buying another car but when the book price is '£9000' for a 1 year old TF 135 me thinks there is something wrong there. How can the book price be less than 50% of what I paid for the car. The TF should have been roughly that figure after 3 years not just over a year.

Roll on company car next year.

[/Rant Over]
 

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Caz said:
[Rant]

Ok some of you will already know my opinion on depreciation. All I'd like to say is this:

01 1.0 Corsa - Paid £7,500 - Part Ex Value £5,500 after 1 year against .....
02 ZR 105 - Paid £13,500 - Part Ex Value £9000 after 18 months against .....
03 TF 135 (with loads & loads of extras) - Paid £21,500 - Sold back for £10,100 after 16 months.

Explain those figures to me. Now I know I could have gotten £12,800 part ex against a ZR but the dealer deducted £900 to fix some damage to the car (paint only) so you're talking £12,000 after that. I'm bound to get less when selling it back to the dealer and not buying another car but when the book price is '£9000' for a 1 year old TF 135 me thinks there is something wrong there. How can the book price be less than 50% of what I paid for the car. The TF should have been roughly that figure after 3 years not just over a year.

Roll on company car next year.

[/Rant Over]
Book price does'nt take into account personalised optional extras. These may be expensive additions when new adding thousands to the price your paying, but you'll be lucky to gain a few hundred pounds when it comes to trade-in time.
 

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Unfortunately due to the current negative press dealers are having to offer huge discounts to shift new stock which obviously has a direct effect on used values.

Great news for anyone wanting to pick up a great used car bargain, bad news for everyone else !

Things will improve when the people begin to realise there is a future for MGR and the public regain confidence in the brand.
 

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Caz said:
[Rant]

Ok some of you will already know my opinion on depreciation. All I'd like to say is this:

01 1.0 Corsa - Paid £7,500 - Part Ex Value £5,500 after 1 year against .....
02 ZR 105 - Paid £13,500 - Part Ex Value £9000 after 18 months against .....
03 TF 135 (with loads & loads of extras) - Paid £21,500 - Sold back for £10,100 after 16 months.

Explain those figures to me. Now I know I could have gotten £12,800 part ex against a ZR but the dealer deducted £900 to fix some damage to the car (paint only) so you're talking £12,000 after that. I'm bound to get less when selling it back to the dealer and not buying another car but when the book price is '£9000' for a 1 year old TF 135 me thinks there is something wrong there. How can the book price be less than 50% of what I paid for the car. The TF should have been roughly that figure after 3 years not just over a year.

Roll on company car next year.

[/Rant Over]
Well the depreciation of your ZR based on your figures was not as bad as the Corsa. On the corsa you lost 33% of it's value in a year, whereas you lost the same % off the ZR in 18 months.

As for the TF, Personally, I think you could have done better, and probably should have held out or sold privately. Let's not forget dealers offer what THEY want to, and if someone is mug enough to let them get away with it they will do.

I learnt from my mistake when I sold back a Octavia (4 months old) for £8700 against new price of £13000+, only to see it on the dealer forecourt the week after for £11,995.

Live and learn and all that !
 

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Jason B said:
Fair point Anthony...but as mentioned in my post...there is depreciation and there is MG depreciation!!!
Sorry Jason, but that's crap.

If you buy any new car and then try and sell it 4 months later, you will experience huge depreciation.

If you can afford to take that hit fair enough, but to come on moaning about it is a little naive.

If you don't want such a massive depreciation - don't sell within 3 years of buying the car or don't buy new.
 

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Alex G said:
Book price does'nt take into account personalised optional extras. These may be expensive additions when new adding thousands to the price your paying, but you'll be lucky to gain a few hundred pounds when it comes to trade-in time.
Exactly. You can't expect things like Monogram paint to add to the value of the car - if anything dealers will offer you less as they can be harder to shift. Not to mention the fact you've picked the worst time to sell any convertible, not just a TF.

IMO anyone who sells a new car within 3 years is a little mad. Although I appreciate in your case Caz, there were contributing factors.
 

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the best part about all of this is taking advantage of it

buy the cars after they have lost all thier money

You can get a late model 1999 R200 Vi today and it will drive very close to a MG ZR 160- you will save atleast £13k

£13k for some spoiles trim and 15bhp - no thanks

same for MGF - you can get a very good one for around £7k in VVC spec - how much new - hmmmm all that for some different lamps and a few other tweaks....

Ok so an older car might need more time at the MGR dealer for repairs - but they will never cost the same as depreciation...

probably not help MGR sales here though :-(
 
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