MARKETWISE - PART THREE:In the third part of his series on the running cost of cars, DONAL BYRNElooks at compact and large executive models
OUR MERRION Fleet analysis of small to medium cars – in terms of the whole-life cost investment in a new car – revealed interesting facts, not least the real rate of depreciation as calculated by the motor trade after three years.
But our final part shows that many cars with large petrol engines are headed for virtual extinction. Some manufacturers have even stopped selling large luxury petrol versions because of huge fuel consumption, CO2 emissions and depreciation.
Merrion, a large fleet providers, has looked at the whole-life cost of compact and large executive cars, including price, delivery charges, metallic paint (significant in many cases), lease rates for three years, servicing, maintenance and fuel costs.
Even the strongest brands in the industry have significant depreciation after three years. According to Merrion, a Mercedes S Class petrol model or a BMW 7 series petrol depreciates by almost 50 per cent in a year.
A BMW 523 petrol model costs €62,672 new, yet is worth a trade value of €18,025 after three years with annual mileage of 24,000km. A Lexus 300 3.0-litre petrol drops from €65,445 to €19,650; a Jaguar 3.0-litre petrol XF V6 from €57,995 to €13,775.
Diesel generally performs well, depending on the popularity of the brand. A BMW 520 diesel goes from €52,242 to €23,775, while the 3.0-litre Jaguar XF diesel from €57,995 to €20,375. A Saab 95 1.9-litre diesel from €45,640 to €11,275.
Fuel consumption is significant. Both the big petrol versions of the Lexus and the Jaguar cost €1.05/km to run, based on this analysis, while a 2.0-litre petrol Mercedes E-Class costs €0.67/km. The total three-year fuel bill for the Jaguar is €8,770 and Lexus is €8,018. Diesel running costs vary widely. A Volvo S80 S5 is €0.82/km, while an E-Class Mercedes diesel is €0.57/km.
“In this segment the gap between new and second-hand values is so great for large petrol engines that it does not make much financial sense to buy a new car,” says Merrion sales director, David Wilkinson.