Depreciation
 

Just for the "heck of it" I decided to check out what used (2008-2010) XK's and XKR's are selling for on cars.com and autotrader. It was evident that those with more than 50K on the clock take a beating on the price.

Perhaps it's my imagination, but it seems like our Jags fall from grace when they get "long in the tooth". This seeming phenomena makes me hesitant to take those long trips, which is a bit frustrating.

These cars are made well and when responsibly maintained, should remain road worthy for as long as any Lexus or Benz.

My trick was to buy one that already had 55k miles on it. I don't have to worry about that!

That is indeed a solution!

Although steep depreciation is a burden shared by all mass produced luxo brands, Jaguar just gets a bit more beating due to the misconception of its reliability and performance.

Most of the new Jag acquisitions, as with BMW, MB, Audi, etc. are leases. Most of the leases on new vehicles are factory subvented, i.e. artificially reduced to attract buyers. Factory leases make sense only when applied to new cars as this is a great way for the factory to help move the inventory. Used car leasing rarely makes sense because the car is already off the factory books.

The only major factory financing support on pre-owned cars comes from Certified Programs or CPO. However, there are restrictions such as the car must still be within the original factory warranty and be offered for sale by a franchised dealer. I'll be happy to explain the nuts and bolts of all of this if asked.

Getting back to the topic..The client segment that can afford to lease a new Jag will not be likely looking at a used car. This leaves a more financially restrained market that for one reason or another cannot qualify for the lease. An expensive car such as an XKR or even an XK (insert 750i, S550, etc) is not an easy sell without special financing support. Therefore the price is market reduced to the point where the interest is generated.

Don't worry. From what I can tell, the first ~40% goes when you drive it off the lot (i.e. regardless of mileage) then, when the price does reach something comparable to other luxury autos, the remainder of the depreciation is more directly related to the mileage, like any other car. So as long as you don't buy it new, you pay for what you drive.

Buy it used for 50K, drive it for 8years/80,000 miles, sell it for $10K. That's 5K per year. (Not counting maintenance). Any other luxury car will cost that or more.

OR, if you've got the pocket cash, buy it new, drive it for a year, take the 30K loss and buy your next "toy". We need the economic stimulus!

Jag's historically should be bought and driven to the ground. The real savings is when you have a solid 10+ year old car that is not worth much, but looks & drives great. One of the few brands (IMO) that is a car to own for the long haul or the depreciation will always loom over your shoulder.

+1

Nice to have a 12 year old car admired!, regardless of $$$$
 

I have had my 2001 XJR for 8 years now .
It looks like new and gets some great comments especially from the ladies.
Thanks to this forum I have come really appreciate this black cat [with 83700 miles] and enjoy doing my own PM.
Never thought I would change my own lugs on this cat. next is changing the valve cover gasket etc > Wish me luck.
At my age I go for the comfort rather than speed.
By the way adding "Redline" to fuel made a great difference to the cat's pep!

I think this fits within my point, as there obviously needs to be someone who picks up the $10,000 10+ year-old jag and loves it to death.

But many different people = many different needs. If your needs happen to transition with your car as it ages, that's great. But I'm going to need a daily driver for much longer than 10 years to come, and a 10+ year-old car will not fit that bill. It has a shelf-life for me, and no matter how much I love it, unless I win the lottery, I understand this reality.

Unlike many other car makes, the jag will cover many purposes - showpiece, daily driver, project - and do all with style. The value is in how you use it for your needs.

But by all means, use it.

For me, it'll depend on how new cars compare in quality and features to my Jag now. Ever get to drive a 80's dream car now? They feel antiquated and heavy. All the cars I lusted for, I don't so much now after getting to drive a few.

Will I feel the same about my XK in 10 years compared to what is current?

For Whatever It's Worth ...
 

QUOTE:
For Whatever It's Worth ...
Last October, I bought a Vapour Grey Metallic 2009 XK Coupe with a two-tone Ivory & Slate Blue interior for $45,000 from a Jaguar dealer. It's a one-owner with 19,000 miles and factory warranty until June of this year. The Jag dealer even completed the 20,000 mile servicing. It's optioned with the Aluminum Luxury Package, the Advanced Technology Package, Upgraded Surround System and 20” staggered-width tires & chrome Selena wheels. It doesn't have a nick, scratch or dent on it. No accidents, no mechanical issues, looks brand new inside and out and runs like a top. It stickered for $85,025. Hope this helps. For Whatever It's Worth ...

I think I topped that.....depeciation!!! 2004 XKR vert 22K miles...like driving a new car...at a fraction of the price £17K ($25K)

In Sept 2010 I was able to buy a new lunar gray 2010 XK coupe that listed for $88,000 with the optional kalimnos 20" wheels for $68,000 from a franchised Jaguar Dealer. They also threw in the certified Jaguar used car 2 year extended warranty in the deal. They only had one 2010 left and were making way for the 2011s. Since there wasn't much difference in the 2011s, and I was getting the new 5.0 liter, I thought it was a good deal as I wasn't absorbing the whole first years depreciation. I was then able to sell my 13 year old (1999) XK8 coupe that I had owned since new for $15,000 so even my wife was happy with the financial transaction even-though we are old, retired, and live off a fixed income.

I think I can beat that :)

2007 XKR, list price new ~235,000NZD. I bought it at the end of last year for ~75,000NZD which gives a yearly depreciation of 32,000NZD or ~£18,000. That doesn't include all the extras like Adaptive Cruise, Premium Sound, Active Headlights, 20" wheels either

It had only done 15.5k miles as well so that is a depreciation of around £5.70 per mile!

Got to be something wrong with those numbers, or my calculations of the exchange rate.
235,000nzd=$196,000
75,000nzd = $62,730
Might be good deal in NZ, but good grief...

White Bear

I wish that was the case but unfortunately not and the 2009 5.0L XKR was $254,990NZD!

The NZ Jaguar dealers were struggling to compete with grey imports so in 2011 the price of the XKR was dropped to $195,000NZD:

Jaguar New Zealand - XK Pricing

Not very nice if you had just paid the old price for one!

To put the prices in to perspective, the average wage in NZ is around $42,000NZD.

GST / Sales Tax
 

Wow - just Wow. We in the US sometimes don't know how lucky we have it...
(and I won't start on fuel prices...)

Just to equalize the comparison though: Your NZ prices include GST at 15% ??
Our US 'Sticker Prices' don't include our State Sales Tax, which varies from 0% (in only a few) to 9 or 10%. It is around 7% in here in FL. It is never included in list prices. There is no Federal Sales Tax (yet !!)

I assume the shipping charges are much higher to NZ, but what else causes the difference ?? Currency exchange rate ??

Belgian list price (we're just right across the channel from the factory!) of my 2010 xk convertible which does have every option that was available at the the time save for the remote garage door opener was just a tad shy of 115.000€ or $147.000. That includes 21% sales tax which companies are required by law to include in their official price lists.

Then it's 7000€/$9000 initial registration tax to get the car on the road plus 2200€/$2800 yearly road tax after that. Basic insurance is mandatory but with a good driving record I got a good deal, about 700€/$900 yearly.

A full tank of fuel sets you back about 100€/$128.

And then I'm single, debt-less and moderately well off so I get 'punished' by a 56% taxation on my wage, claimed to be the highest tax rate anywhere in the world.

So yes my friend, you're lucky :icon_wink:

When I emigrated to NZ I brought my '98 XJR with me in the same container that my house contents were in and the shipping costs for a 40 foot container was around £4,500. Half the fleet on the roads in NZ are shipped from Japan and a lot of second hand dealers also ship cars from the UK so I don't think shipping costs can be blamed for such a price difference. I guess they just charge what they can here!

I have a feeling that the dealers don't set the prices, I think they are set by the official importer for NZ. They set the spare parts prices as well which can be particularly high.

The price differences in New Zealand, Belgium vs. the USA are staggering. I knew that Europe had very high taxes on larger displacement engines but, did not think they were THAT high. I am impressed, to say the least.

Albert