It's not a good time to own one.
The theft epidemic plaguing Range Rover vehicles in the UK has caused a drastic impact on their insurance costs and resale values, leaving owners like Tim Coen in a dilemma. Coen, a property investor and the owner of a Range Rover Sport SVR, faced an unexpected hurdle when he decided to switch to an eco-friendlier electric Porsche. The surge in thefts of Range Rover vehicles has led to skyrocketing insurance premiums, making it nearly impossible for Coen to re-insure his vehicle.
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In a startling revelation, Coen discovered that the cheapest insurance quote available for his Range Rover was a staggering £48,000 ($60,100). This prohibitive cost has not only affected insurance premiums but also significantly diminished the resale value of these luxury SUVs. Coen, who runs North Property Group in Leeds, had purchased his Sport SVR for £103,000 two years ago. However, the recent valuation of his vehicle plummeted to about £45,000, a sharp decline from an earlier estimate of £75,000 just three months ago.
Coen's experience isn't unique. Many Range Rover owners are witnessing a similar depreciation in their vehicle's value. According to data from Auto Trader, the average price of a used Range Rover has decreased by 9.3% since May to £35,224. This decline is notably steeper compared to the 5.7% drop for all luxury SUVs and 2.8% for all cars.
The decline in Range Rover prices, which saw a 2.8% drop in November alone, is attributed to the recent spike in insurance costs due to increased theft risks. This situation is particularly ironic given the surge in second-hand car prices during the pandemic, driven by slowed new-vehicle production caused by semiconductor shortages and supply chain disruptions.
The predicament faced by Range Rover owners like Coen highlights the complex interplay between vehicle thefts, insurance costs, and market values, reshaping the landscape for luxury SUV ownership in the UK.
