Sporty vehicle depreciation

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Sporty vehicle depreciation

Post by IndianaJones » Sat 12 May 2018, 11:15

What do you guys think?

We in SA can not compare vehicle depreciation to other world markets, it simply is not the same. I for one feel that given our local economy and inflation rates, modern vehicles in SA follow a much shorter depreciation curve than overseas.

Given a modern or new car in South Africa is kept in a good condition, and accumulates less kilometres than the average for the year model.
Lots of factors would influence the final outcome, but on average, for how many years do you feel does a “new” vehicle depreciate in South Africa, before it starts appreciating in value again?

Let’s for the moment focus on sporty or enthusiast type vehicles, and exclude bakkies, company/rental/fleet type vehicles and exotics.

Or does our modern second hand/used vehicles typically depreciate at first, then start appreciating again with inflation, and then start depreciating a second time when it starts getting very old with high mileage?

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ZA Perana
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Re: Sporty vehicle depreciation

Post by ZA Perana » Sat 12 May 2018, 18:38

The problem in SA is depreciation is offset by increases in new prices.
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Re: Sporty vehicle depreciation

Post by barrydorr » Tue 15 May 2018, 09:17

Just looking at the current new classics..
The superboss for example took about 20-25 years to increase in value.

But not all cars from 25 years ago have gained value, i believe it is still about demand and availability, regardsless if we are in is the same for all countries. Only difference might be the amount of value.

Now lets say the 2017 Ford Mustang cost about 2027 with 125.000km it may be worth about 150.000? Then 2037 with 225.000 a fulle restoration is done and the value will be??

Than one other consideration..depreciation of money....prices of new cars in the 70s were below R10.000 in in the 50 and 60 even below R1000...

All in all i believe value is gained when people start restoring the car they once loved so much...with a avg lifecycle of 25 years?
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