Deprecation on Beach. Am I missing something?

[roblpmedinburgh]

Hi,

New to Californias but not new to Boat/Motorhome/Car types of man maths...... (Had a 27ft sailing boat/Hymer 674SL/Golf R Estate - all of which were fabulous and disappeared on divorce!)

I'm now really back in action a few years later. I have a company Hyundai Ioniq 5 which I pretty much loathe! And need a leisure vehicle of some description. I am thinking about a 1 vehicle solution which is where the Beach comes in. I think I want the extra flexibility over the kitchen and storage in the Ocean. It would be my daily driver but since I work from home or abroad I don't do much daily driving!

On Drive The Deal when I spec up a Beach with the heating options etc it comes out at about £60k. A lot of money! But then I look at 5-year-old ones which are between £45k and £50k and ten-year-old vans which are £35k and think hang on......! Obviously, it means capital tied up but unlike my previous purchases, it looks like if I kept it for 10 years I would get half the value back.

Am I missing something? Ie:

a) There are no bargains to be had in used factory or conversion vans?
b) Unlike other car purchase the depreciation from new is not to be feared?
c) Or to sum up buying a new California is not like buying any other new car?

Cheers

Rob

 

[roblpmedinburgh]

Ahaha first post on here and a typo in the title! Ah well......

 

[dspuk]

Hi,

New to Californias but not new to Boat/Motorhome/Car types of man maths...... (Had a 27ft sailing boat/Hymer 674SL/Golf R Estate - all of which were fabulous and disappeared on divorce!)

I'm now really back in action a few years later. I have a company Hyundai Ioniq 5 which I pretty much loathe! And need a leisure vehicle of some description. I am thinking about a 1 vehicle solution which is where the Beach comes in. I think I want the extra flexibility over the kitchen and storage in the Ocean. It would be my daily driver but since I work from home or abroad I don't do much daily driving!

On Drive The Deal when I spec up a Beach with the heating options etc it comes out at about £60k. A lot of money! But then I look at 5-year-old ones which are between £45k and £50k and ten-year-old vans which are £35k and think hang on......! Obviously, it means capital tied up but unlike my previous purchases, it looks like if I kept it for 10 years I would get half the value back.

Am I missing something? Ie:

a) There are no bargains to be had in used factory or conversion vans?
b) Unlike other car purchase the depreciation from new is not to be feared?
c) Or to sum up buying a new California is not like buying any other new car?

Cheers

Rob

Nope. Not misssing anything. Despite the endless doomsayers of "prices crashing" the residuals really are that good. Check out the breakdown below:

 

[NessL]

Hi,

New to Californias but not new to Boat/Motorhome/Car types of man maths...... (Had a 27ft sailing boat/Hymer 674SL/Golf R Estate - all of which were fabulous and disappeared on divorce!)

I'm now really back in action a few years later. I have a company Hyundai Ioniq 5 which I pretty much loathe! And need a leisure vehicle of some description. I am thinking about a 1 vehicle solution which is where the Beach comes in. I think I want the extra flexibility over the kitchen and storage in the Ocean. It would be my daily driver but since I work from home or abroad I don't do much daily driving!

On Drive The Deal when I spec up a Beach with the heating options etc it comes out at about £60k. A lot of money! But then I look at 5-year-old ones which are between £45k and £50k and ten-year-old vans which are £35k and think hang on......! Obviously, it means capital tied up but unlike my previous purchases, it looks like if I kept it for 10 years I would get half the value back.

Am I missing something? Ie:

a) There are no bargains to be had in used factory or conversion vans?
b) Unlike other car purchase the depreciation from new is not to be feared?
c) Or to sum up buying a new California is not like buying any other new car?

Cheers

Rob

All of the above (a, b & c)

 

[roblpmedinburgh]

Nope. Not misssing anything. Despite the endless doomsayers of "prices crashing" the residuals really are that good. Check out the breakdown below:

Great stuff although I think the maths have changed a bit in the new interest rate environment!

 

[dspuk]

Great stuff although I think the maths have changed a bit in the new interest rate environment!

A little but TBH but not that bad. We got ours at 4.9% with a 21 order we picked up in July 22. Current rates are 7.5 on PCP. If you do the maths you may not be "quids" in, but you still ok and the better thing is the longer you keep it the less it loses vs theirs.

 

[roblpmedinburgh]

A little but TBH but not that bad. We got ours at 4.9% with a 21 order we picked up in July 22. Current rates are 7.5 on PCP. If you do the maths you may not be "quids" in, but you still ok and the better thing is the longer you keep it the less it loses vs theirs.

Thanks for that. Do you know about the maths of PCP? Can you end it early with no penalty if interst rates come down? I would like to preserve my capital at the moment for a number of reasons but in a year or two may be in a position to pay a lump off and switch onto a cheaper persona loan?

 

[dspuk]

Thanks for that. Do you know about the maths of PCP? Can you end it early with no penalty if interst rates come down? I would like to preserve my capital at the moment for a number of reasons but in a year or two may be in a position to pay a lump off and switch onto a cheaper persona loan?

Well out of my wheelhouse I'm afraid. Sure Google is your friend here.

 

[andyinluton]

Thanks for that. Do you know about the maths of PCP? Can you end it early with no penalty if interst rates come down? I would like to preserve my capital at the moment for a number of reasons but in a year or two may be in a position to pay a lump off and switch onto a cheaper persona loan?

VW treat it exactly the same as HP - they will give you a settlement figure which includes a rebate of some of the interest you would have paid. The personal loan would have to be significantly cheaper to make the change worthwhile.

 

[Amarillo]

In 1969 my father bought a mirror dinghy (small sailing boat) for £70. It sold on EBay two weeks for £35.

65p depreciation per year.

My Beach is even better than that.

2017 I paid £42,222. I reckon I might be able to sell it for £42,223 tomorrow.

But that is not how I’d work it out for either.

New mirror dinghy £4,595 less £35 £4,560, £84.50 depreciation per year.

New Beach £60,000 less £42,223, £17,777; £3,000 depreciation per year.

 

[roblpmedinburgh]

In 1969 my father bought a mirror dinghy (small sailing boat) for £70. It sold on EBay two weeks for £35.

65p depreciation per year.

My Beach is even better than that.

2017 I paid £42,222. I reckon I might be able to sell it for £42,223 tomorrow.

But that is not how I’d work it out for either.

New mirror dinghy £4,595 less £35 £4,560, £84.50 depreciation per year.

New Beach £60,000 less £42,223, £17,777; £3,000 depreciation per year.

Yes exactly. Inflation/ Higher Interest rates. But still incredibly low on the Beach.

 

[roblpmedinburgh]

Well out of my wheelhouse I'm afraid. Sure Google is your friend here.

Ok thanks to google and chatgpt I think I now understand pcp!

You can think of it as 2 loans. An interest only loan on the GFV. And a normal repayment loan on the difference between the Total Loan Amount and the GFV that gets repaid over whatever the term is.

So in fact even though the popular narrative is that PCP is somehow a scam, for the financially literate is just is what it is. It preserves capital elsewhere and there’s not actually that much difference between vw’s 7.5% and current loan or mortgage rates.

 

[Borris]

Never mind the depreciation or rather the lack of it, if that doesn't make your mind up the sheer versatility of this model beats just about any thing else in the market. There isn't much a Beach can't do with ease.

If you're considering buying new then my advice would be to, "give the cat the other goldfish" and not hold back with the options. A well specced Beach is a rare thing. Get the options right and it will not only hold it's value like nothing else on the road but will sell in a heart beat.

 

[Ch1pbutty]

Decent campers always hold their value and are
always in demand.

We sold our T2, T25, T4 for more than we originally paid for them 2nd hand; Current Beach cost us £27k 3 years ago, and would have no issues selling it tomorrow for say £30k, as it’s a good spec when compared against some of the more recent beaches with fewer options.

Worst mistake you can make is to buy new as it’s unlikely that you will ever sell it for more than its purchase price….but obviously you get a shiney new van + warranty on the plus side!

 

[The Blue Merle]

Decent campers always hold their value and are
always in demand.

We sold our T2, T25, T4 for more than we originally paid for them 2nd hand; Current Beach cost us £27k 3 years ago, and would have no issues selling it tomorrow for say £30k, as it’s a good spec when compared against some of the more recent beaches with fewer options.

Worst mistake you can make is to buy new as it’s unlikely that you will ever sell it for more than its purchase price….but obviously you get a shiney new van + warranty on the plus side!

You missed the bit that new van can have more issues than buying secondhand (had lots with mine). All my second hand ones have been gems

 

[Sculliod]

Hi,

New to Californias but not new to Boat/Motorhome/Car types of man maths...... (Had a 27ft sailing boat/Hymer 674SL/Golf R Estate - all of which were fabulous and disappeared on divorce!)

I'm now really back in action a few years later. I have a company Hyundai Ioniq 5 which I pretty much loathe! And need a leisure vehicle of some description. I am thinking about a 1 vehicle solution which is where the Beach comes in. I think I want the extra flexibility over the kitchen and storage in the Ocean. It would be my daily driver but since I work from home or abroad I don't do much daily driving!

On Drive The Deal when I spec up a Beach with the heating options etc it comes out at about £60k. A lot of money! But then I look at 5-year-old ones which are between £45k and £50k and ten-year-old vans which are £35k and think hang on......! Obviously, it means capital tied up but unlike my previous purchases, it looks like if I kept it for 10 years I would get half the value back.

Am I missing something? Ie:

a) There are no bargains to be had in used factory or conversion vans?
b) Unlike other car purchase the depreciation from new is not to be feared?
c) Or to sum up buying a new California is not like buying any other new car?

Cheers

Rob

We have had two beaches since 2019 in each case I have made money on the sale running each vehicle for two years. Unless you want the kitchen and smaller bed then the beach is a sensible all rounder. The latest versions have a mini pullout kitchen so are the ones to go for. I would avoid the Beach Tour as it has no Electrical Hook Up. Unless you plan to go off grid then would think twice about the diesel heater, nice but not a necessity. There is not a lot to dislike about owning a Cali!

 

[andrew bazeley]

I paid £32000 for my T5 15 years ago, and someone offered me over £20,000 for it recently! It will all change when the emissions rules will kick in eventually.

 

[Sculliod]

Decent campers always hold their value and are
always in demand.

We sold our T2, T25, T4 for more than we originally paid for them 2nd hand; Current Beach cost us £27k 3 years ago, and would have no issues selling it tomorrow for say £30k, as it’s a good spec when compared against some of the more recent beaches with fewer options.

Worst mistake you can make is to buy new as it’s unlikely that you will ever sell it for more than its purchase price….but obviously you get a shiney new van + warranty on the plus side!

Bought new ran for two years made a £2k on the sale last month. That’s not to say that feat is repeatable but the market is still very strong.

 

[Multi1100]

In my opinion the foreseeable dieselban is the biggest threat and will affect the depreciation figures. Time will tell....

 

[Sculliod]

Possibly but it only bans sale of new diesel vehicles. I think in the short to medium term vehicles will hold their value.it’s not like you won’t be able to buy diesel anytime soon.

 

[Ozzy Pete]

The only thing we have to thank Covid for is the value of ALL vehicles staying sky high. That of coarse is if you own one and are not looking to buy one.

In 2017 After 2 years and 10k miles of ownership I contacted the dealer and asked how much they would give me against a new van the one I had paid £44k for and he told me 28K.
5 years later and 27k miles my van is now worth almost as much as I originally paid for it. In all my life of owning cars (57years). I have never known a situation like it. Even our Focus ST we bought just over 2 years ago and 6 months old is still worth £2K more than we paid for it. WBAC and Motorway values. Crazy….

 

[Ch1pbutty]

The only thing we have to thank Covid for is the value of ALL vehicles staying sky high. That of coarse is if you own one and are not looking to buy one.

In 2017 After 2 years and 10k miles of ownership I contacted the dealer and asked how much they would give me against a new van the one I had paid £44k for and he told me 28K.
5 years later and 27k miles my van is now worth almost as much as I originally paid for it. In all my life of owning cars (57years). I have never known a situation like it. Even our Focus ST we bought just over 2 years ago and 6 months old is still worth £2K more than we paid for it. WBAC and Motorway values. Crazy….

Nothing to do with Covid. Decent campers always hold their value.

 

[Ozzy Pete]

Nothing to do with Covid. Decent campers always hold their value.

Think you missed the point somewhat. ALL vehicles have held there value including Campers AND cars.

 

[Ozzy Pete]

Think you missed the point somewhat. ALL vehicles have held there value including Campers AND cars.

And it was all down to COVID.

 

[Perfectos]

1) The VW T series, in general, holds its value remarkably. (Any model)
2) VW increase the price of new vans regularly, which helps second hand prices Stay robust.
3) Second hand values of Calis have always been strong (see #2).
4) covid / supply issues, from VW exacerbated delivery times vs demand and allowed the second hand Market to become overheated, in the meantime VW (you guessed it) increase prices of new vans, which further supports second hand prices And creates a shortage of new vehicles vs market demand !

IMO if you want a Cali you have to get on the train at some point, eye watering as it may be at the time !

edit. In 15 years of following Cali prices / market , I’ve never seen a “cheap” one for sale !