Overhaulin'

How much would a car dealer buy my new car after 3 yrs service?

Hi, My budget is £8000 and I want to buy a brand new car. I would like to know whether I can re-sell the car to the car dealer after 3 years and how much would this or another dealer buy it for approximately after 3 yrs service? Apart from insurance + car, what else should I pay for? Thanks.

Public Comments

1. Think you get bit less than half original price ,, Its up tp the dealer if he will buy it from you or take it in part exchange for something else . yes you have to pay for insurance ,,, road tax , servicing , repairs ,, running costs . fuel. oil etc , possibly tyres replacements , At 3 years also MOT to pay for . quite a bit will depend on condition of the vehicle ,, mileage etc . I reckon £3000 to £3500 for it at 3 years .
2. Buying a brand new car is an expensive business: You have the same running costs as a good used car (possibly a few hundred quid less overall taking into account MOT costs & free servicing offers on some new cars), but you're going to take a big hit in depreciation, and if you're borrowing money to finance your new car, that'll cost you too. Selling to a dealer unless you plan to part ex for another new car will mean the dealer offers you a very poor price: You'll get a better deal selling privately & re negotiating a deal on another car. Your used car will be worth around £3,000 - £4,000 at three years old (although depreciation varies hugely between different makes & models). A dealer may offer or guarantee you a higher part ex price, but this will be dependent on you buying another new car from them. You could therefore buy the same car at three years old yourself, and afford to throw it away after three years: Any resale value at six years old will mean you're in profit.
3. Depends on the car. Generally you'll be lucky to get any more than 30-40% of the original purchase price back after 3 years.
4. Rule of thumb would be about 40% of what you paid, but it depends on the car they all depreciate at different levels. Visit Parkers.co.uk for used car values.