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#33 of 16377 by timadams Jan 11, 2001 (5:46 am)
You're welcome! But please remember to take the figures with a grain of salt.   I'm not questioning Kiplinger's integrity or accuracy, but you do have to remember that the figures they provide are "in advance" projections used to calculate lease payments. What the actual depreciation of a car will be in 2 or 4 years might be quite different, due to supply/demand at that time (as SUV owners will find out, I predict).   I'm sure Isell or Bill might pop in and relate their experiences that, say, Toyotas or VWs or whatever actually do better than projected in holding their value while Chryslers or Pontiacs do worse (just examples).   In other words, while the projections used by leasing companies are valuable information, actual results might tell a slightly different story.   p.s. Andre, the one that surprises me most on the list is the high expected resale value of the Chevy Monte Carlo. It is way out of trend with most other GM cars (other than Firebird/Camaro and Corvette).
#34 of 16377 timadams by audia8q Jan 11, 2001 (8:03 am)
The problem with the kiplinger type statistics is that everyone thinks their cars or truck is the pefect one...I have found plenty of toyota's that have 95% deprec after 36 months and some Ford's with much higher resale than the toyota... It truly depends on the individual car and how the owner keeps it...   Also when you call the 1-900-crystalball number you bank on things never changing. But they always do...this is why the so many huge players in the leasing business are out of the business or near financial ruins basing things on kiplinger type statistics...consumers change long before the statistics do... look at the statistics on Audi before and after the phony 60 minute story.. BTW: some of the numbers are rather accurate but some are totalreal world fiction (like the camaro /monte)   Rich
#35 of 16377 Lease residuals... by isellhondas Jan 11, 2001 (4:41 pm)
Many a bank and car company has been burned big time by setting residuals too high.   The Intrepid (or whatever) comes off lease after three years and the lessors walk away.   The residual was set at 12,000 and they are begging at auction for 8500.00.   And...the banks get smarter, and tighter.   And the customer wonders why he can't get the same payment next time!   Why? Because the banks dropped the hell out of the residuals!
#36 of 16377 depreciation by stickguy Jan 11, 2001 (5:30 pm)
Don't you also have to take into account that the percentages are off of MSRP? For instance, the Taurus might look worse than it really is. Say MSRP is 20,000, factor of 50%, so residual is 10K. But if you only paid 17,000 for it, your real depreciation is much less.   I also don't care much about percentages. Dollars count. 40% of a 40K car is more than 50% of a 25K car,
#37 of 16377 stickguy by audia8q Jan 12, 2001 (12:28 am)
you are correct about the % of MSRP. If you figure in .9% financing for 60 months along with a rebate that dodge/ford et al offer the numbers start to get more inline...   rich
#38 of 16377 No doubt by timadams Jan 12, 2001 (4:44 am)
Like other things in life, hindsight is 20-20. I imagine we will look back at the early and mid 90's as a period of leasing bargains, with the pendulum swinging back now to where residuals are much less optimistic. Meaning that leasing payments are higher for the same price cars.   As an admitted SUV hater, I am probably biased. But I think depreciation on many of the SUVs out there will be greater than owners and leasing companies think. Once the craze has abated, they will be worth less than projected. Kiplingers shows many of them worth over 60% after 2 years and 45-50% after 4 years. The old "trucks/4WD vehicles hold their value better" will be an outdated aphorism as supply outstrips demand. It used to be true when a guy wanted a 4WD "beater" to take in the woods and there weren't many around, but that isn't true anymore.
#39 of 16377 Isell...... by frag235 Jan 17, 2001 (10:41 am)
Are the above resale percentages realistic for Accords in your experience? How about residual values for 2-3 year old ones? (btw, I have a Y2K SE)
#40 of 16377 frag235 by isellhondas Jan 17, 2001 (11:14 am)
No, Accords will have a higher residual since they hold their resale better than most cars on the road. that is why they can be leased for low payments.   Still, the car/leasing companies heve to be very careful when setting residuals.
#41 of 16377 Is it worth it to travel out of state for a car by akangl Jan 18, 2001 (5:46 pm)
Ok, here is my story or whatever you want to call it. I need to trade down out of a 1999 Nissan Quest SE to a small car that I can pay off in 2 years. I plan to sell the Quest on my own, I don't think I will have a problem since it is a very clean, low mileage van. There are 2 Honda dealers in the state of Alaska and I have had dealings with both, some good, some bad. My biggest problem is the 10% market adjustment that they feel justified in charging and if you succeed in talking them out of that its hard to get a car for less than MSRP. Ok, before I go any further I have been in car sales for about 6 months and decided the 85 mile one way drive to work wasn't fun so I moved on to something that required less traveling. That being said I have seen people saying that they paid $24,000 for a Nissan Quest SE same as mine which I paid $26,000 for, MSRP was $28,250 and it was a leftover 99 in June of 2000. This has got me wondering if I can get a better deal on the car I want to buy......2001 Honda Civic EX 5-spd with side airbags, if I go to say Washington. Several of my friends have done that and say they got a much better deal. Any comments? I don't want to seem like an inconsiderate buyer, I am quite the opposite, I am very easy to deal with and not at all unrealistic, however I will go to Washington if I can get a better deal. At least the 2 Honda dealerships up here are owned by 2 different people, the 2 Nissan dealers are owned by the same guy.
#42 of 16377 re# 41 by vida27 Jan 19, 2001 (3:28 am)
I grew up in Palmer, Alaska but live in Oregon now. It is tough to buy cars in Ak because of the lack of competition. On the other hand, buying a car in WA or OR is tough becuase the drive back to AK is long (2500 miles), gas is expensive in Canada (4.00 per gallon), and the ALCAN will beat the hell out of your brand new car. Tough call. I would get on the internet and see what kind of price you can get for your dream car. Compare that to what you can get in AK. If you can save a bunch of money by coming to the lower 48, then do it. Otherwise it probably isn't worth the hassle. I bought my 2001 Honda Accord EX V6 in Portland for 300 under invoice. It was a very satisfying deal. If you could get a similar deal on your civic, it might be worth the trip. Plus, you could show the AK dealers the consequences of price gouging.

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