Car manufacturers and the iPhone generation

543 More

Earning the right to be successful

532 More

Knowledge is power

607 More

Selling cars – it’s all about timing

847 More

Truemag

  • Home
  • About
  • Advertise
  • Archives
  • Contact
  • Subscribe

Costliest optional equipment worth little on used car market

Many of the most costly items of optional high-tech equipment currently available on new prestige-brand cars are worth very little on the used market, according to the latest analysis from GlassGuide.co.uk.

In the large luxury car segment, which includes the BMW 7 Series, Audi A8 and Mercedes-Benz S-Class, the average cost of radar cruise control is £1,750. However, after just 12 months the typical trade value of the system is just £250, equivalent to an 86 per cent fall in value. Depreciation for the car itself is slower – over the same period the trade value of a typical diesel-powered car in the segment falls by only 42 per cent.

Other new on-board technologies also depreciate very rapidly. The average cost of a night vision system is currently £1,250, but after 12 months its value will have fallen by 80 per cent to just £250.

Often the options that retain their value best, as well as improve the overall saleability of the vehicle, are those that enhance the aesthetic appeal of the car, explains Richard Crosthwaite, Prestige Car Editor at GlassGuide.co.uk. “Investing in a manufacturer-fit styling upgrade is often very worthwhile, as it can return more than 100 per cent of its original cost. For example, a one-year-old BMW 325i with an optional M Sport pack is currently worth £3,500 more than a standard 325i of the same age, even though the pack itself would have added only £2,500 to the list price.”

Crosthwaite says specifying larger wheels can also enhance the desirability and value of a prestige car. “Opting for 20-inch alloy wheels in preference to the standard-fit 19-inch items on a BMW 330i coupe will add £1,000 to the value of a one-year-old example.”

Underlining the fact that used car buyers are not necessarily attracted by the latest high-tech gadgets, Crosthwaite says there has been a sustained improvement in the retained value of sunroofs over recent months. “The trend is most apparent with panoramic sunroofs on large prestige SUVs, where they can retain more than 50 per cent on a one-year-old vehicle.”

Used car buyers have growing expectations about the equipment that will be fitted to a prestige-brand car. “On larger models, items such as Bluetooth, park distance control and sat nav are increasingly regarded as essential to secure a sale on the used market,” adds Crosthwaite. “A large, one-year-old SUV without full-screen satellite navigation would be worth £2,500 less than one fitted with such a system.

“Buyers of smaller prestige cars are still willing to pay extra for such options. A one-year-old Audi A3 or BMW 1 Series specified with park distance control, Bluetooth and a sunroof would currently draw a premium of between £500 and £1,000.”

Oct 7, 2009MTI
  • Report reveals a buoyant luxury car market
  • As predicted car dealers are buying up prestige cabriolets
  • Latest falls complete prestige sector “price correction”
  • Car dealers warned over part-exchange pitfalls
  • Increase in extended warranties – are they worth the paper they are written on?
  • Used car market still doing well
  • JLR secures £175m loanWhy buy a Jag or a Lexus when you could have a Chrysler Sebring?
    You Might Also Like
     
    Increase in extended warranties – are they worth the paper they are written on?
     
    Internet usage is increasing for car buyers
    MTI
    11 years ago Consumer, Newsdepreciation, Used car39
    Most viewed
    Top 100 UK Dealer Groups
    38,664 views
    The car sales process and the “9 point plan”
    10,751 views
    webuyanycar review – They will buy any car but beware of the asterisk
    5,430 views
    Most commented
    Car sales and the power of silence…
    25 Comments
    Car dealers still not prepared to play the “we buy any car” game
    23 Comments
    A Traders Tale – Part Four
    22 Comments
    Win a pre-loaded Ipod Shuffle!
    19 Comments
    Bargain of the Week – StreetKa 1.6i Luxury
    14 Comments
    Bridal Hair Berkshire
    Fox Body to 2018 Mustang Parts
    and Accessories
    About MTI

    Motor Trade Insider
    is written by people working actively in the motor trade for people on the inside and people on the outside.

    Our aims
    Build a bridge between consumers and the trade, create Interesting and informative content, break down barriers and create better understanding, expose bad practices and rip-offs and promote outstanding products and service.
    Have something to say?
    We are always looking for experienced writers who can write good original quality posts on motor-trade-insider.com. Please contact us if you would like us to consider you. Make sure you give us details of your own blog or a link to some articles you have written.
    2017 © Motor Trade Insider
    Truemag theme by StrictThemes