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Tuesday 7 September, 2010
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Big cars for big business needs

By Matthew Tumbridge, editor, Used Car Expert

Land Rover Discovery 3
Discovery: premium appeal plus off-road ability
Audi Q7 3.0 TDI
Audi Q7: huge seven-seater, but pricey
Hyundai Santa Fe
Hyundai Santa Fe: good value, long warranty
BMW X5 3.0
BMW X5: posh performer, on-road polish
Date Posted: 17/06/2009
Land Rover Discovery 3
Audi Q7 3.0 TDI
Hyundai Santa Fe
BMW X5 3.0

Used Off-Road Cars

THERE are certain industries where just providing your staff with a car isn’t really enough. For example, construction and property development means travelling not just up and down the motorway but also driving around building sites. And in all weathers.

Farmers and associated industries can have similar needs, although it’s unmade tracks rather than building sites that they need to deal with. Security firms may not require to go off road that often, but may need powerful, commanding machines with good visibility of the road.

Let’s face it, we all like our creature comforts too. So this month we are looking at large 4x4s.

Why buy?

Large 4x4s are effectively luxury cars with sophisticated suspensions and small tractor wheels. This means they are immensely expensive new. However, Used Car Expert’s unique average mileage figures show an interesting opportunity for the used business buyer. For the first three years of life, these premium ‘Jeeps’ as they are often generically called, are bought by the wealthy private buyer or business user on a cash for car basis and used for low mileage. They also happen to be very well maintained in most cases.

Then, around MOT time – and often at the end of the lease agreement – they are cast aside for the newer, better model. Which is when we shall pounce, and like all the other buyers of these cars at two to three years old, really start to pile the miles on as we get some work done in them.

Land Rover Discovery

One of the most handsome 4x4s; it routinely seats seven in a well-finished cabin. The best off road capability obviously, but also very relaxing on motorway cruises. The Discovery 3 is not cheap new though.

Audi Q7

Not just for posing, this is a proper off-roader and a huge one at that. A clever seven seater that is expensive to buy and run. Petrol V8s are least sought after; diesels most wanted. Interior space is surprisingly small because of the flat floor that hides the 4x4 drivetrain.

BMW X5

The first of the sports 4 x4s and probably still the best. Very practical and very refined; a sort of high-rise 5 series. V8 petrol models are falling rapidly in value and worth buying because mpg is not that different.

Hyundai Sante Fe

A capable 4x4 and MPV alternative in seven-seat format. Luxury, reliability and now good looks – all at great prices. It’s just a question of whether you can live with the brand.

Which one should I choose?

Land Rover Discovery
There isn’t really a choice here. There are hardly any of the Discovery’s big petrol units on the market. It’s all about the 2.7 diesel. The HSE is the spec to have.

Audi Q7
MPG is pretty poor on both engines compared to the others here. The 4.2 petrol delivers 21 and the 3.0 diesel gives just 27mpg. The petrols sold so few new that depreciation stays small, so diesel is the only way to go: cheaper to buy and run.

BMW X5
The 3.0-litre engines come in petrol and diesel and are just 8mpg apart at 22 and 30 mpg respectively. But the petrol is much cheaper to buy. However, the 4.4 litre petrol is even cheaper and delivers rich and smooth power for the loss of just another 2mpg. You can really take your pick with the BMW.

Hyundai Sante Fe
If you do low mileage, take the 2.7 litre petrol engines, because they are so much cheaper than the 2.2 diesels. But with a 10mpg difference, do your sums first, because it won’t take that long on the motorway for the diesel to pay for itself.

What sort of price should I pay?

Flicking through the 4x4 pages of the Used Car Expert magazine, looking just at the depreciation and average mileage figures, there is a clear pattern for most 4x4s. These cars all show admirably small depreciation and low mileage for the first couple of years, because there are not that many on the market.

But then the cars registered in either 2007 or 2006 suddenly enter the market with a double-digit chunk of depreciation and a step up in mileage. Taking all the factors into account here are the top picks and prices:

Make & Model (2006 year cars) Fair Price (2006 year cars) Depreciation (and mileage) 2006 Depreciation (and mileage) 2007
Land Rover Discovery 2.7 HSE £23,042 15% (31,960) 6% (12, 600)
Audi Q7 3.0 TDI SE £28,162 11% (33,880) 9% (23,813)
BMW X5 3.0 SE £24,016 20% (33,598) 14% (20,743)
Hyundai Santa Fe VGT GSI £11,828 13% (16,573) 11% (12,618)

Our Choice

While the Audi looks good, it’s just too expensive for what it can do.

For a fledgling business, the five-year warranty and price make the stylish-looking Hyundai a sensible choice.

But when the time comes to grow, the brand image won’t help your business get to the next level, so it’s got to be the Land Rover Discovery. It is the most consummate performer off road and of the premium brands, it’s the best value on the used market.

The BMW X5 is your alternative pick if on road performance is slightly more important.

BCA comment on choosing a used 4x4

Simon Henstock, small business specialist at BCA runs the rule over 4x4s: “At three years and 60,000 miles, a well maintained 4x4 from the one company owner, complete with a fully-stamped service history (very important!) and with a good specification is an appealing combination. While prices have recovered well in 2009 after falling like a stone last year, don’t overvalue these vehicles as they remain price sensitive. And, at the top end of the range, they still represent a considerable investment for the used buyer.”

“So what is the buyer looking for? Specification is important: alloys, leather, aircon and sat-nav are favoured in the used market. These add value. Make sure the spare wheel is in place, particularly if it is exterior-mounted on the rear-hatch. Look for ‘rugged’ accessories, like mounted spotlights and roof bars, but beware those 4x4s looking like they’ve just come back from peace-keeping duties in some war-torn hot-spot.

“What about performance and torque? Diesels are generally favoured, but petrol also does well as long as the mileage is not too high. Colour is important, but generally you can get away with anything that looks sober or utilitarian. Many of these big rugged vehicles do not suit subtle or frivolous paint schemes, so avoid the pearlescent finish with the peach leather interior.

“And ensure the car has a comprehensive, up-to-date service history – some sellers get a pre-sale inspection done by the auctioneers to further promote buyer confidence – and also make sure it has an MOT.”

To see what’s available to buy at BCA, go to Buying Vehicles at BCA

Further information
For more used car buying advice, prices and depreciation news, fault checks and more, visit www.UsedCarExpert.co.uk



TAGS: Used business cars, 4 x 4, 4X4s, executive business cars, executive, Used business car expert,




Ralph Morton, Business Writer of the Year
Guild of Motoring Writers Awards

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