Revisiting "which hot hatch March 2020"

[fredgroves]

Just found the gti pp too. 55.42ppm, which is still worse than the BMW... I suspect its all to do with a mk7 having bad residuals now it's a previous model...

[Tallpaul]

I’d imagine there is very little chance that the actual p/ex value of an M135i matches that estimated residual value. Of course, to fleet managers and anyone else leasing, this is of no consequence. To actual punters who will be PCP’ing them and hoping for some equity to roll in to a new car, it will be a bit of a disappointment.

[fredgroves]

Equity makes no odds really. You either pay less each month or have it as a lump sum at the end. With super low deposits you don't need the lump anyway. It's all about the monthlies and nothing else.

[Rimp]

Its odd that this website let you choose a TCR, they stopped taking orders back at the start of January. Mcmaddy ordered one around the 5th, if I’m not mistaken, and the next day all orders stopped on Golfs.

My opinion is if you look too deep into resale value/depreciation then you’re losing sight of why you want a fun new car to begin with. Unless you’re a fleet manager for a company then this should be a lesser factor. Way more important, I think when purchasing a car, are looks inside and out, driving feel/fun, practicality and quality/reliability. All way more important than worrying about a couple thousand a few years down the line.

If you really were bothered by depreciation then you would lease or buy second hand.

[fredgroves]

Must be nice to buy a car without any consideration of what its costing you.

Whatever you do for a job, can I come and work there too?

[dubber36]

I don't think that Rimp is implying the the cost is of no consequence. We all have a finite amount of money to spend. Some people perhaps will spend less on holidays, not buy expensive Hifi, eat out every week etc, which may allow them to be a little less carefree about other purchases. After all, finding the best deal takes time. Time has a value too.

[Rimp]

yeah I wasn't saying that cost isn't ever an issue. You should only ever spend what you can afford and never at the expense of neglecting other responsibilities. Have a budget and be sensible about it.

My assumption was that all of the cars shortlisted were within budget.

I just think if you are passionate about a car in your shortlist you shouldn't let the nerdy spreadsheet part of your brain put you off just because in 3 years time its worth a bit less than another car.

[fredgroves]

It's over 7 grand difference from top to bottom.... its not a trifling amount. And that's before you consider interest on any loans you need to cover it. That's a lot of Jamaican ginger cake (or shoes for the wife)

What I'm really saying is that the cost of owning even a car of about the same value (say 37k) is quite different when you add it all up.

It's an important consideration, more so than lap times around the ring or whatever Clarkson is driving this week.

[monkeyhanger]

It depends how you're buying your car.

If you're buying outright and anticipate a certain future value, true residuals count and may influence your buying decisions if you don't want to lose a fortune picking one car over another.

If you buy on PCP at a monthly rate you're happy with, then residuals aren't your problem, same with leasing. You hand the car back at the end, no matter what. That being said - perceived residuals influence your monthlies.

If a TCR is going to cost you £600 a month (inclusive of deposit down), in my mind, that's horrendous for a Golf - you could lease an S4/RS3 for that.

I've got a 2018 and a 2019 Polo GTI+, both bought outright and I put back into savings my perceived depreciation, based loosely on PCP GFVs and history of the previous model. I'm expecting that those "£23500" Polos bought for £20700 will be worth £13000 at 3 years old (GFV is £11500) to put away about £240 a month each to cover the depreciation and a bit of inflation for the next one.

[Crockers]

It depends how you're buying your car.

If you're buying outright and anticipate a certain future value, true residuals count and may influence your buying decisions if you don't want to lose a fortune picking one car over another.

If you buy on PCP at a monthly rate you're happy with, then residuals aren't your problem, same with leasing. You hand the car back at the end, no matter what. That being said - perceived residuals influence your monthlies.

If a TCR is going to cost you £600 a month (inclusive of deposit down), in my mind, that's horrendous for a Golf - you could lease an S4/RS3 for that.

I've got a 2018 and a 2019 Polo GTI+, both bought outright and I put back into savings my perceived depreciation, based loosely on PCP GFVs and history of the previous model. I'm expecting that those "£23500" Polos bought for £20700 will be worth £13000 at 3 years old (GFV is £11500) to put away about £240 a month each to cover the depreciation and a bit of inflation for the next one.

Using that system you also need to factor in the loss of use of the capital.