Future Value? Buying used...
 

Hi guys,

First post. I am considering a very low mileage '14 V8S here in Dallas. I have read that the F type holds it value fairly well. But a $106k car with 6500 miles that drops to $60k in 3 years isn't anything to get excited about. Any thoughts on where it will go from there? Or is it all just a guess. I looked at the older model convertibles and they are actually hanging in there. This is no knock against the F Type, almost any high end luxury car drops like a rock in the first couple of years. I have been burned by a Mercedes and a BMW. I am so tempted by a 2016 Corvette clearance where I can get a new Z51 Stingray Convertible for 20% off. $69k Sticker for $55. The weird thing is a used 2104 with 10k miles goes for about that. Those things hold their value like crazy. It is so tempting, but I am not a "corvette guy". And I may get flamed for even bringing up a Chevy, but it is a great car, just not my style. But please don't say money doesn't matter on toys like this...cuz money always matters! So I do want the F type...I love the thing, I just don't want to lose over $10k per year in depreciation.
Cars aren't worth that to me, and I am a cash buyer. Anyway, any thoughts would be appreciated. Also how or who is best to extend the warranty through? Can I do that with Jag? Thanks guys...

If you are already thinking about the consequences of selling before you've even bought it, don't even consider buying an F-Type. An F-Type purchase is a long-term investment in FUN. Even if you plan on borrowing one on a lease, you are going to be close to that $10k annual number (if you can lease a used car).

I understand your point somewhat, but not thinking about the selling of an item you know you will sell in a few years is kinda foolish. That would be like not caring what the residual is on your lease. I am not trying to argue, I appreciate your time, but when I write a check for $60k, you bet your booty I'm am considering the whole picture. I don't want to get into the whole financial aspects of cars purchases, because I think way too many have their head in the sand over how much of their net worth they are actually spending. But you are correct, it may be about $10k per year. I know it would be at least that on a new car (buy or lease), so if I buy it for $60k and sell it for $30k, I wouldn't be too upset. I just don't want it to be $22k, you know? And you might also be right, that if I have to be blinded to the financials by the emotion of the car to purchase, maybe its not for me!

I don't think you can predict the residual value of any car down the road. Jaguars are notorious for their drop in value, which is unfortunate because they are great cars. On the other hand they are great values for someone not wanting to purchase new.

I would check KBB and NADA book values of 6 - 7 year old XKR's. They had similar MSRP's and should give a good indication of what a 6 - 7 year old F-Type will be worth.

I plan on keeping my car for along time, so I compared the V8V and XKR values, and while they both lost value, the Aston did seem to level off in the mid 5 figures, the Jag continued to slide to the high 4 figures. The Aston value is highly mileage dependant, where as the Jaguars was not.

Just to add, I think the Corvette is one beautiful car, every bit as equal to the F-type.

Yes, looking at the XKR values, they are actually really good. The F type should be better...at least that is what the experts are predicting. But 2011 XKRs are $35k to $40k! So they do seem to level off. My research put that 2014 at about $36k or so in 3 years, and I don't drive much. I can surely live with that. I guess I am just glad I didn't buy new. I just have T-rex arms, you know where they can't reach in your pockets to buy anything. My wife is pushing more to buy than I am. It is just the way I am wired! Thanks.

I thought for a second I broke the #1 rule of fight club....don't talk about depreciation in the Jaguar forum! lol I know it is not what many Jag owners want to ponder for long....sorry!

No need to apologize; we are all aware of that. But we buy the F-types for the fun factor, aesthetic appeal, and exhaust symphony.

The F-type put Jaguar back on the map.


But of course residual value and reliability will always hamper British cars in the market.

There are two ways to own a unique and fun car. One way is you purchase it new or almost new, and eat depreciation. Another way you buy pristine classic and then pay for maintenance.

They cost about the same.

I have classic SL that I daily drive in the summer (along with other cars), and year to year it takes about $8K in maintenance. If I worked on it myself (don't have time) or was less picky about "everything works, as new" then I could reduce the costs...

If your primary concern is costs, or affordability is problematic for you, then consider Mazda MX5. They are very affordable and hold their value rather well.

There is absolutely no financial case to own F-type. None.

It isn't, if you are talking modern. Corvette is much better performing car. To me it is much uglier, with a very serious drawback "oh look here goes midlife crisis" image problems.

Going to the track, I'd rather drive Corvette (and I'd be wearing helmet all the time). Everywhere else - no comparison, I'd rather be driving F-type.

A comparison from the UK:

V6 coupe with minimal spec* - just added parking sensors and camera, plus the adaptive lights and heater screen.

On The Road price in 2014 with the semi-obligatory Tracker system was £53k

Final payment 3 years later (should I decide to keep it) was £28k.

That's a wildly different depreciation curve compared to most cars in the UK - in that it's worth a lot more than many.

But: The cheapest equivalent spec used car on Jaguar UKs dealership website is £45k (as at last month - I have yet to check this month).

That website also offers a price on your existing car: £36k as at last month.

It's looking like I'll buy it and then sell it privately next year...

*Plus mats and the light grey headlining to stop it looking like a morgue.

Buying used avoids the big depreciation hit.....if I was much concerned beyond that, I wouldn't buy a car that is essentially a toy.

2 cents,
Dave

lease new, buy used....thats the motto with these cars

Thanks for the feedback. carzaddict, "The lease new, buy used" makes sense. What still doesn't make sense is the cavalier attitude about money! I sure hope you can have a Toy and not lose your ass. lol I'm being a bit lighthearted here, but I guess I just watch numbers too much. A miata? Because I worry if this car will be a dud down the road? I like what I like, but everything to me has a cost factor...and it does to you too, even if you are not aware of it.
I just paid cash for this car, so a lot of you on this site can write a check like that and not consider the future of that money? Or is this just making payments with blinders on? I'm not trying to judge anyone but advising me to buy a Miata? Pass the Grey Poupon.

Hmmm; not being aware and not being overly concerned are two different things. I chose the Jaguar because I liked it, well aware that any car (aside from some classics) is a rapidly depreciating asset. Perhaps a Porsche or Mercedes may hold it's value better than a Jaguar or perhaps not; hard to say. Not trying to be rude or argumentative but I bought the car I liked because I liked it and because I can afford it. Whether or not a Brand X or Y car may be worth $5000 more in a few years (or not) wasn't a primary concern of mine; frankly, if it was, I wouldn't have bought one in the first place. Maybe that's cavalier....but to worry about which car might be worth more when I go to sell it would seem to take most of the fun out of buying it in the first place ...for me, anyhow,


Good luck with whatever you chose.


Cheers

Dave

Hey, I admit its a pretty weak post anyway....It is almost a rhetorical question. Nobody really knows what the value will be. I am just such a saver. Its a blessing and a curse. I am surprised nobody had input on the warranty issue I asked about? I guess why buy an extended warranty if you don't worry about the expense. It fits the narrative. Anyway, I did find a nice 2014 White V8S with 13k miles and a full warranty until May of 2019. That should cover me for the 24-30 months I will probably keep the car. It will be delivered Tuesday. My mother in law and I have a joke about me being "cheap". I think it is more "frugal" though I do call myself cheap, but either way her daughter will never have to worry about money. ;-)

Yep, if you buy 99% of luxury cars you are going to take a bath on resale, you can mitigate it a bit by buying used instead of new but really if you are very worried about this then you shouldn't buy the car. This is not a rational decision it is a f*** it live a little decision.

I'm guessing not many have gotten to the point of needing an extended warranty yet for this car, so there won't be much feedback available until then. Sometime in 2019 (depending on how fast I put on the miles) I'll be shopping for an extended warranty. I'm not worried about the drivetrain (that's on me)...more worried about the complicated electronics systems, gauges and motorized toys inside the car.

I largely agree, but would say that OP's approach lets the original buyer takes the larger depreciation hit and the car is still a long way from having the repair shop as a second home. It's the approach I took on mine and I'm happy with the choice.

As a side note: Owning a classic doesn't have to be a money pit. I've made money on all my toys - even factoring in repair/restoration costs.
The F-Type will break that trend, but I'm OK with that, as well.

Great point! None of these are out of warranty yet, kinda forgot how new they all are.