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Hi guys, i know this has been posted before...but since the global economic and swine flu virus erupt... i just want to know how much have change in regards to car depreciation annually for a newly bought cars here in dubai?

portland wrote:Hi guys, i know this has been posted before...but since the global economic and swine flu virus erupt... i just want to know how much have change in regards to car depreciation annually for a newly bought cars here in dubai?

I don't know current situation in detail but it's highly depend on brand.

Toyota has the highest residual value and it's much easier to sale. A half year ago For Toyota It was 10%-7%-5% year to year.

Open "Classified" in the Gulf news and you'll find rather good estimation.

ok thnx, coz from what a friend of mine tells me its at 30% annually, these day. but ill check on gulfnews classified and see whats new...


Model = KIA Sportage V6 2.7 L yr 2008
OR Price = 76000
Sale Price = 58000
Depreciated price = (OR - SP) 15000
Projected Annual Depreciation 15%

Please correct if calculation is wrong...
whats the difference between lady driven?

30% annually is a accounting figure for depreciation (depending on your method).
Ever heard the saying "the car depreciates 40% once you drive it off the dealership lot?".

I'm new to the Gulf market, but I don't think the swine flu will have a major effect on depreciation.

Recalls, Stolen car stats, etc. directly affecting the product will have a much greater effect on the YOY depreciation.
Swine flu is almost mutually exclusive to car resale values.

Best thing to do is monitor dubizzle and autotrader for the next couple of months and compare similar cars.

portland wrote:ok thnx, coz from what a friend of mine tells me its at 30% annually, these day. but ill check on gulfnews classified and see whats new...


Model = KIA Sportage V6 2.7 L yr 2008
OR Price = 76000
Sale Price = 58000
Depreciated price = (OR - SP) 15000
Projected Annual Depreciation 15%

Please correct if calculation is wrong...
whats the difference between lady driven?

Actually even more depreciation for KIA I think and it will be not easy to resale then. So the price in "Classified" could differ very much from the actual sale due to lack of demand.

My friend had been selling his Mitsubishi a few years ago and he had only 3 phone calls in a month.

ok ic thank for the replies, ill check on the market then

^ are you in the market for one?

nope at the moment...i just want to know to have better picture of the auto market now adays.

Just seen an add for a 2008 Audi TT, 2.0l turbo, 26,000km.

When buying this car new, it would have cost AED155K, now the person selling the above car is asking AED108k

Correct me if I am wrong, but Insurance Companies generally work on 15% depreciation for the first year, then 10% p.a. after that.

Recently sold my 2008 Tucson V6 2.7L (standard option).
Bought 66K in Nov 2007, valued at 53K by insurance company when renewing the registration in Dec 2008, sold 53K in Feb 2009.

how old is your car when you sold it recently?

portland wrote:how old is your car when you sold it recently?

i bought in new in nov 2007 but model/registration is 2008.
so 20% depreciation for the first year. jap cars would be less.

When accounting for depreciation you consider a lot of factors....I think it'd way more appropriate were you to calculate salvage value. Why do you wanna depreciate ur car it's personal property right?
Try and assess what the salvage value of your car is. Or you could tell me what car u drive and we could work out the salvage value. Jap cars normally have the highest salvage value!

American cars dead already by the look at it..

well im thinking to get a new car, but i need to know the depreciasion value of cars here for annual or salvage value if after 3 years you are going to sell it. The car im planning to take is kia sportage.

Because if annual depreciation value or salvage value for the car is higher that what im expecting, then i would think twice. Im not planning to have half of the cost back but atleast I want to have better ROI if i got bored of it and decided to sell or change it.

What is your reason for buying HYUNDAI/KIA?

Buy Toyota and you will look like a MAN, not like a man who drives HYUNDAI.

THe deprisiation in absolute value will be the same.

well i just like the design and the cost,
comparing toyota SUV to the KIA's SUV.

ive check pricess through here www.drivearabia.com

It does not matter what depreciation % you take, when you come to sell the car it is only worth what the market dictates and/or what somebody is prepared to pay for it e.g. if you buy a new car on the basis that after two years you will sell it and you find that it should only be valued at 30% less that purchase price, yet the market dictates that the purchase price of the car is 50% less, what are you going to do?

What has happened to your expected ROI? Also, forget about any form of ROI on cars, unless you are talking about Classic Cars, which, sadly with a Kia, you are not.

well i gues you have a point there mate... well if its at 50% at 2 years or if market itself is unstable then ill sell it at whatever the market cost or trade it in to a new one.

Just accept that when you buy a car, the minute you drive it awat from the Stealership, it will start depreciating. When you come to sell it, you will get for it what somebody is prepared to pay - simple as.

Like other things, just accept:

1) you will get dents/scratches etc in your car from other cars,
2) people will scrape your car whilst they are parking/leaving a parking spot and just drive away, and
3) you will get a lot of stone chips on the front of your car (from construction lorries dumping half their load on the roads)

PS: happy motoring

yorky500 wrote:Just accept that when you buy a car, the minute you drive it awat from the Stealership, it will start depreciating. When you come to sell it, you will get for it what somebody is prepared to pay - simple as.

Like other things, just accept:

1) you will get dents/scratches etc in your car from other cars,
2) people will scrape your car whilst they are parking/leaving a parking spot and just drive away, and
3) you will get a lot of stone chips on the front of your car (from construction lorries dumping half their load on the roads)

PS: happy motoring

ok thanks for the info: yup i guess there nothing we can do abt. it.
happy motoring too and safe driving. c u next week and happy weekend

You can calculate ROI if ur using your vehicle for commercial purposes.....
With personal users it's a different story. In a highly mature car market like UAE, second hand KIA's have no place.
Find out the market price of used Kia Suv's and depreciate them accordingly. Take that figure and apply it your car.
European automobiles come with a certain exclusivity factor, that tends to make them valuable after a point of time.
With the KIA from the time of purchase it's a free fall, unless KIA doesn't launch another SUV anytime soon.

Red Chief wrote:What is your reason for buying HYUNDAI/KIA?
Buy Toyota and you will look like a MAN, not like a man who drives HYUNDAI.
THe deprisiation in absolute value will be the same.

toyota is toyota, people's car, there's nothing special of it, always overpriced, never like it. i would never be proud anyway driving toyota.
if i got the money and decide to buy a brand, then i'll buy a Lamborghini

how much you would get for a V6 SUV/CUV with toyota brand (or any other brand)? i dare you can't get it less than 70K for new.
i don't care much about resale value, i drive car for using it (daily purpose + some leisure) for long time as long as i'm comfortable with it, i'm not a car reseller or one who like to change car every year.

portland wrote:well i just like the design and the cost,
comparing toyota SUV to the KIA's SUV.

ive check pricess through here www.drivearabia.com

yep, that's one of the main reasons why i like tucson over sportage, RAV4, or others. (within the same class - compact SUV/CUV)

hi portland , i think the value of car is more imporatnat than its price.. for luxury cars depreciation value is very less as compared to other brand...

--- Sep 26, 2013 ---

valuation of car is more important than its price..for valuation of car mileage,trim level,model and year of a car are important.

--- Oct 03, 2013 ---

hi.i think the car depreciation value is not fixed it depend on year ,model and brand of car according to that its value depreciated every year.. there are so many used car dealers in chennai from where you can take help one is rightcar..