MotorsAnalysis: value for moneyWhen buying an executive car, make sure of all the facts before you sign up, says Donal Byrne- and check the whole cost of each model, right down to the manufacturer warranty and breakdown assistance cover.
The next time you are passed by an expensive executive car and feel a twinge of resentment, console yourself with the fact that it is probably losing its value far faster than the car you are driving.
It is a well known fact that depreciation for bigger cars can be dramatically higher than for smaller ones, yet companies and individuals are happy to keep on buying them because they are what they think they need.
Our latest whole life cost analysis from one of the country's biggest fleet suppliers, Merrion Fleet, looks at how cars in the executive sector fare after three years and mileage that is typical for the segment.
You can see some familiar trends. Cars like the Alfa Romeo and the Volvo cost most to run and lose value dramatically, while cars like the BMW 3 Series, Mercedes C-Class and Lexus fare well. The Alfa 159 costs €38,300 and is worth €14,375 after three years, according to Merrion. The BMW costs €42,100, but is worth €25,875 after the same period, and the Mercedes E-Class costs €43,225 and is later worth €25,300.
Merrion's David Wilkinson, the company's marketing director, says maintenance, service and fuel are the biggest running costs. "After the cost of depreciation, the cost of maintaining, servicing and fuelling your vehicle makes up the balance of our whole life cost analysis.
"Companies pay a lot of attention to service and maintenance costs when deciding between different vehicles because it has an impact on the overall cost.
"Individuals should also focus on what their new vehicle is likely to cost them to maintain over a given period when deciding between models," he adds.
"The total cost of maintaining a vehicle over a given term can vary between models but also between different versions of the same model. These differences can be due to a number of factors: different engine sizes and thus different road tax charges; a difference in the wheel size and tyre size required and also the length of service intervals."
He points out that it is also important to compare fuel economy figures, as these will have an impact on your total fuel bill. This becomes more relevant as the cost of fuel increases and can make diesel models more attractive, especially with higher mileage. The fuel costs here are based on AA fuel price surveys for July.
Merrion also advises people to look closely at manufacturer warranties and breakdown assistance cover, as these can vary between manufacturers. The longer the length of cover provided, the lower the cost to the driver if something does go wrong with their vehicle.
Some manufacturers, such as BMW, are now offering "Service Inclusive Packs" that can be purchased at the same time as the vehicle.
These can work out competitively, depending on the driver's mileage (although some with lower mileages may find them not quite the bargain they thought) and provided that the work is arranged within the specified parameters.
It is important to pay close attention when purchasing a Service Inclusive Pack so that you are clear exactly what is covered and when it is covered.
The table may make some cars look like real bargains but, as we have pointed out with previous analyses, the figure predicted for a value after three years is what the car is worth in the trade.
Companies simply replace their cars with new lease models, and don't sell them - the lease companies take them back and then sell them on into the trade.
However, the figures do provide a very interesting idea of what you should be paying for a second-hand car if you are buying in this segment.