Am I Silly for Considering This? - Buying and Selling

Mintee on 09/03/2025 - 13:38

Howdy,

My vehicle is coming onto 2.5 years old…. (of which I'm the 2nd owner, and had it for 1.5 years), I know its super young. But, I may have a potential buyer that is keen, where, the depreciation on the 1.5 years of ownership may not be too much (depending if we come to an agreement on price) I need to work out essentially how much depreciation id be willing to accept.

There has been absolutely, nothing wrong with this car, I enjoy driving it and has no issues. Although - I know that roughly at the 3/4 year mark or lets call it 50k kms, I'm expecting a new set of tires, battery and limited warranty left.

I kind-of see two main factors, 1) the depreciation of the car (that I've lost) over its ownership period and 2) the cost of getting into something new/similar

Am I silly for considering to get rid of it; I would be then looking at approx 8-22k to get into something similar, but at a 24/25 (6 months old or demo) model instead of a 22 model.

Should I just consider the depreciation of the car that I have (i.e lets say its no depreciation DO IT, 1-3k DO IT, 3-5k DO IT? 5k-7k you're starting be an an idiot 7-10k you're starting be an an idiot 10k+ you must be loaded?)

or should I also factor in the cost of the 'new' car? I'm seeing this as more of a value proposition right now but may have tunnel vision and focusing on just the depreciation of my existing car, there's always the emotional factor to.. I would consider myself on the 'border' of being an 'enthusiast' .

Keen for thoughts

Automotive

Comments

  • JenPat on 09/03/2025 - 13:53
    +6

    What make and model?

      • barge-in hunter on 09/03/2025 - 14:48
        +22

        Completely incorrect. Different models face different depreciation- and have different reliability concerns.

        If you’re driving a 3 yo sports Mercedes then you might be on the cusp of heaps of depression- and a lot more reliability issues than a Toyota.

          • barge-in hunter on 09/03/2025 - 14:52
            +19

            @Mintee: Oh young padwin. You have much to learn.

            • Mintee on 09/03/2025 - 14:53

              @barge-in hunter: Haha im genuinely shocked, since theres a 5 year old Mercedes in the driveway with not a single issue.

              In saying that I did have a new car buyback issue…. Soo i get it..

              • Flutterby on 09/03/2025 - 15:03
                +2

                @Mintee: Lol. An AMG pack with all bells and whistles?

                If depreciation and ongoing maintenance is remotely your concern, you can't afford it.

                • Mintee on 09/03/2025 - 15:11

                  @Flutterby: So, youre saying the deprecation of the car im intending to buy should be considered or youre saying cuz im considering depreciation on my existing car I cant afford what I have?

                  Have you seen the costs some manufacturers are charing for a basic service. Its just silly for oil and a filter is all I'm saying…

                  • Flutterby on 09/03/2025 - 15:21

                    @Mintee: Yes. Just paid $1.2k for a basic oil change and fuel filter replacement. $700 for two rear tyres. $1.3k rear brakes. Yes, they have also charged me $60 for wipers so I won't need to go find it and fit them myself.

                    Ultimately, it's what your money is worth.

                    Previous cars bought new, told the dealers to drive it to our place just go have a look and test drive. of course, you pay RRP for their service. Many try hard to keep up with the joneses, but in fact many can't really afford the "luxury" labels.

                    What costed me time are the other toys/semi rare ones. That took a lot of time to source.

                    Seriously, you ware wasting time on a few k and swapping what's essentially the same car. Get a car that you can afford.

                    • Flutterby on 09/03/2025 - 15:27

                      @Flutterby: PS. That's a Toyota/Lexus. Porsche will do something different.

                      • Mintee on 09/03/2025 - 15:32

                        @Flutterby: I think you answered my question with one sentence in your statement.

                        "Ultimately, it's what your money is worth."

                        Ultimately that's up to me aye…. Btw you should see me picking out an outfit; im just an indecisive person😂

                        • Flutterby on 09/03/2025 - 16:00

                          @Mintee: Well. Thats in reference of what money is worth in terms of time. Or what time is really worth. To waste that sort of time, yours ain't with a lot.

                          Stick to a Toyota or something that you won't lose sleep over.

                        • freefall101 on 09/03/2025 - 16:22
                          +1

                          @Mintee: The issue seems to be less about what you should do and more about getting validation, regardless of how relevant that validation is to your situation.

                          So your option is to either tell us the car and get some meaningful info out of this, or just do whatever because it sounds like you'll regret it either way.

              • Murkymerv on 09/03/2025 - 16:23

                @Mintee: Well it definitely wasn't made on a Friday ⁉️

          • May4th on 09/03/2025 - 18:04
            +1

            @Mintee: my first fault with a new merc came about two weeks after driving it home. set the tone for things to come..

      • elgrande on 09/03/2025 - 21:29
        +2

        Tesla owner fo sure

  • holdenmg on 09/03/2025 - 14:05
    +2

    Almost any car (including any you buy) will depreciate.

  • Drakesy on 09/03/2025 - 14:07
    +5

    I mean if you want to maximise the depreciation hit you'll be taking everytime, sure, upgrade every 2-3 years.

    I generally buy them after 3 years because thats where the majority of the depreciation is, plus on some of the new cars you still will have 4-7 years left on your warranty.

  • MS Paint on 09/03/2025 - 14:10
    +3

    Does the potential owner know how many shifting errors you have made in the car?

    • Mintee on 09/03/2025 - 14:14
      +2

      Hahahahha - Ill call that a first week issue; since then its been good….

  • Protractor on 09/03/2025 - 14:16
    +5

    My thoughts are how would anyone know how to give an opinion with out a make,model,accessories etc? That's the silly part.
    What we don't know.
    The prospective buyer may be the victim here.

      • Protractor on 09/03/2025 - 16:12
        +5

        Don't be doubly precious. Just name the brand etc.Why pfaff around.Is it a state secret?

  • Euphemistic on 09/03/2025 - 14:44
    +5

    Even if youve got a decent offer for your car, the only sensible time to update is if you NEED a change of vehicle. Otherwise its just a heart decision and not a financial decision.

    • Mintee on 09/03/2025 - 14:45
      -1

      Mmmm youre 100% right id say 5 years ago. But, if with the EV world these days, does the same apply?

      Lets say I transitioned to something like a BYD atto

      • MS Paint on 09/03/2025 - 15:03

        This article may be of interest.

        • Mintee on 09/03/2025 - 15:20
          +1

          Well… Fair enough then there goes my argument 😂

          • Euphemistic on 09/03/2025 - 16:13
            +1

            @Mintee: I feel that EVs depreciating faster is not gping to last long. When the second hand EV market matures then the depreciation will decrease. More EVs pn the road, more confidence in the batteries (they do last a long time, just media says otherwsie)

            Changing to an EV seems a sensible upgrade if ypu have the option, but reality is that youre better off holding a car for more like 5y.

            • OZBargainer in SA on 10/03/2025 - 09:31

              @Euphemistic: EVs depreciate due to peoples' perception of how worn-out they are and how much a new one costs. The discounting war is driving 2nd hand prices down, IMHO.

              • Euphemistic on 10/03/2025 - 11:01

                @OZBargainer in SA: I agree that this is the case now, but feel that in the future depreciation wont be as bad. That could be as soon as 5y.

                Once we get a higher proportion of EVs on the roads, theyll start to show the doubters that batteries dont need replacing the second they are out of warranty. Itll likely show that overall, theyll be just as reliable as an ICE car.

                Plus petrol prices will be higher and charge infrastructure will be better so more drivers will be keen to cut their motoring costs by going to EV.

                Buying now and holding for five years will put you into a vastly different market than it is today. Misinformation online will be countered by your friends and family's real life experiences. Most EV owners will never go back to ICE.

      • NanoDuke on 10/03/2025 - 09:00
        +1

        You bought a Tesla and want to get away from the Musk stigma?

  • Gunnar on 09/03/2025 - 15:41
    +4

    Based on your previous posts and there’s a Mk7 GTI on your YouTube channel you’re a car guy (to a greater or lesser degree) so I’m giving you three responses.

    1. Practical (ie Ozbargain ‘Buy a Camry’) Advice: No seems really stupid to replace a car that soon

    2. Car Guy Advice: replace your car when you think you’re ready to and you can afford it.

    3. Combined Advice: don’t use depreciation as an excuse to replace your car if you’re out of love with it ;-)

    • Flutterby on 09/03/2025 - 16:01

      MK7 GTI, car guy? Sure.

      1. Just buy another one for the heck of it.
    • Mintee on 09/03/2025 - 16:17
      -1

      There was a mk7 gti in the mix somewhere but thats 10 years ago now… After recent vw experience no more VWs ever.

      But thank you.

  • Dollar General on 09/03/2025 - 15:52

    Are you using the proceeds of the sale to buy another car or do you need to put in more money on top?

  • ol mate on 09/03/2025 - 16:55
    +2

    This would be more meaningful with a make/model as the below costs could be more/less depending. Nonetheless, I'll bite.

    If you're looking at $8k changeover, it's probably worthwhile if you have the cash.
    As you've aluded to, at the 2-3 year or 50k mark, you're at a stage where you're about to change a set of tyres, have a major service coming up (which wouldn't be an issue if it was on a Toyota fixed price, or a BMW corporate package - again, make/model would be useful here), and would be looking at new brakes in another 10-50k (again, make/model would be useful), then also having the warranty reset.

    Let's use a Hyundai Tuscon as an example here.

    Tyres - So a set of the cheapest, nastiest tyres will cost you $750 (or $1k for something decent).

    Servicing - using the Hyundai Fixed Price servicing on their website, it'll cost the following:
    12m/15k: $350
    24m/30k: $350
    36m/45k: $395
    48m/60k: $395
    60m/75k: $350
    72m/90k: $538

    So by selling now, you'll avoid paying more than $350/service. You'll also essentially "reset" the timeframe on all the more expensive services at 90k (i.e. it'll be 6 years away again, instead of being due in 3.5 years).

    Brakes - will cost $800-1k a the 100k mark (depending on how you drive it, etc.) - it can even be as bad as due in 10k at $2k (if something Euro).

    Warranty - it's hard to really put a value on a 5year warranty vs the 2.5years left, but if you were to buy a factory backed extended warranty, it'd be in the $2-2.5k range (but not a lot of people do, so it's hard to value it as you're basically gambling on whether a warrantable defect will occur in year 5 to 7.5). Then there's also rego + CTP to consider, if the brand new car is getting 12mths but your existing car has a renewal due in 5 months time.

    So taking all that into account as a worse case (inc. extended warranty), you'd essentially pay $4-6k (an actual make/model would be useful) to keep your car to 7.5 years. Or you can get a brand new one for $8k more - effectively a $4-6k changeover to drive a brand new car with new car smell.

    You can see that car rental companies have considered this - they will generally flip their cars at the 2yr/50k mark (or 1y/30k mark for Euros - you'd be surprised how many Audis need brakes at 30-50k km). By doing this, all they've spent on maintenance is a few oil filters and oil (the labour is at "cost" as they run their own workshops) but avoided the cost of tyres and brakes. But also, they have discounts which probably offset the depreciation on a 2yr car anyway.

    The flipside of all this is, if the buyer was savvy and ran the numbers, they'd realised they are really only saving like $3k buying your 3yo car vs a brand new one (even less if they're financing - generally there's better rates on brand new than used cars) once they'd taken into account the other costs associated (servicing, tyres, brakes, warranty, etc.)

    • Mintee on 09/03/2025 - 17:05
      -2

      I really really really appreciate the time you've taken to reply and can see why now why providing the vehicle details may be a little more relevant. I think part of the reason why the car I've got is holding its value well is due to it being no longer being available in the Australian market with the model being discontinued; but, in my view, this also limits to me if I retain the vehicle in terms of sourcing parts in the future should I keep it.

      Similarly, how this segment is essentially dying in Australia; which also limits my choices in getting something similar in the same segment…

    • joshash on 10/03/2025 - 10:54

      This is really good stuff. For a private owner, the sweet spot may be just before 100k, avoiding the timing belt service.

      • Euphemistic on 10/03/2025 - 11:06

        Agree. Sub 100k is good buying as well as easier to sell. Hiw many sub 100k cars still have timing belts? Dont they mostly use chains now because they are less prone to breakage and last longer?

  • Gdsamp on 09/03/2025 - 17:45
    +3

    honestly if you just said what makes/models you're thinking of selling and replacing it with would make it easier to recommend yes or no.

    Being so cagey about it suggests you're leaning towards yes but expect the forum consensus to be no

    BTW life is short

  • montorola on 09/03/2025 - 17:56
    +6

    Lol @ OP still refusing to disclose make/model and being difficult.

    grabs popcorn

  • Protractor on 09/03/2025 - 20:25
    +1

    It's a Craptiva

  • Darayus on 10/03/2025 - 11:57
    +1

    I have 14 a old Subaru Impreza, which still runs smooth, and efficient, just service, and replace tyres, batteries, brakes and rotors as and when needed.

    So, there is nothing wrong with driving an old car, as they are built to last. The only thing is that you should get it fixed when it needs attention.

    • Redoctober00 on 10/03/2025 - 13:25

      Unfortunately it is almost always cheaper to repair than it is to replace your car.

      I had this with a failed ECU. My car is junk so it was 3k for a new computer or buying a random car you take the chance on for 3K.. factor in not having time to look for the 'right' second hand car I just said fix it. Rather deal with my lemon that any surprises of buying a secondhand car that has hidden issues.

      Prior to that it was my front suspension…couple of hundred bucks.

      • Euphemistic on 10/03/2025 - 16:18

        Unfortunately it is almost always cheaper to repair than it is to replace your car.

        Unfortunately? Id say fortunately. I dont want to have to buy a new car every time it needs a repair. Of course id rather it didnt need repairs, but thats a pipe dream.

        • Redoctober00 on 12/03/2025 - 10:02

          lol wrong word choice. I was more meaning that for me it was always that it was never a 'your car is dead get rid of it' decision. Just that slow bleed over time to keep it running vs decision on purchasing a car (and having the breathing space to find something suitable).

          • Euphemistic on 12/03/2025 - 12:46

            @Redoctober00: The slow bleed over time really sucks. It does stop you from saving for the replacement.

            Im in a fortunate situation to be able to DIY a lot of repairs. My old vehicle that my kid now drives has had probably over $2k worth of repairs in the last few years, but its only cost 1/3 that. I dont count spanner time as its a form or recreation (mostly). It qoukd cost a lot more to lurchase a bewer used vehicle to replace it, and theres more risk with a vehicle with unknown history.

  • Nugs on 10/03/2025 - 13:18

    Yes
    .

  • Redoctober00 on 10/03/2025 - 13:18
    +1

    I think the buyer has the right idea. Sellers on the wrong side of the depreciation.

    Been thinking of buy a car around 3-4 years old and under 80,000 km. Where it has already depreciated > 30-40%. Hold for 3 years then sell it off. Start the cycle over again.

  • Flutterby on 10/03/2025 - 19:34
    -1

    OP has the tendency to start ranting about something with a new post and then ghost when all turn to sht.

    • Mintee on 11/03/2025 - 06:36

      Idk what you're on about. I generally reply… Can i say the same about commenters that generally commentors just post to rant and dont answer the question?

      I got some great response and not so great ones both personal, practical and a few laughs (ms paint) …

      Eventually the post just dies out it aint gonna live forever

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