Last post on Sep 17, 2007 at 6:06 PM
You are in the Mercedes Benz M-Class
What is this discussion about?
Mercedes-Benz M-Class, Ford Explorer, Buick Rendezvous, Acura MDX, Car Safety, Fuel Efficiency (MPG), SUV
#434 of 473 Resale Values
Jul 25, 2003 (4:25 pm)
It's usually quite true that Domestic vehicles don't hold the early resale values nearly as well as the imports. The 5 year resales tend to be a bit closer because depreciation of the plateau effect.
The numbers that you quote, hope is a little skewed though:
Assumptions: 21K/Good condition (most 1.5 year cars will be this or even excellent)
2003 CXL: Bluebook: 29545
2003 ongoing Discount: 3000
2002 Resale 13660
Difference 12885 (~49% depre)
2003 MDX Touring: Bluebook: 37802
2002 Resale: 30720
Difference 7082 (~19% depre)
I would think it of this way:
If you don't mind buying a 1.5 year old car, get the Rendezvous for $13660!
Regardless, get the car you're satisfied with and that fits your 'intent to keep'.
If you're going to buy and drive x >5 years; the choice would be domestic. If you're going to trade-in <3 years--go import (or even lease deal if structured correctly).
#436 of 473 Resale value after 5 years
Jul 25, 2003 (5:35 pm)
Since we cannot compare a 5 year old Buick Rendezvous and the MDX. Lets compare a Buick and an Acura that has been around for 5 years. The LeSabre Limited and the TL are pretty close in price. According to KBB, assume 60000 miles, a five year old LeSabre Limited in fair condition is worth $6600 and a five year TL in fair condition is worth $11040. Almost twice as much.
Jul 26, 2003 (12:42 pm)
Why is the trade in value alway around 10 % to 20 % more in Edmunds than it is in KBB? The KBB link you provided only talks about buying a used car not trade ins.
#439 of 473 Hopeitsfriday
by steve_ HOST
Jul 26, 2003 (1:03 pm)
Edmunds is a consumer oriented company and our numbers are based on real transactions. Kelley is biased toward dealers as are NADA, Galves, etc. and, as the article says, their numbers are suggestions -- your question really depends on which Kelley book (site?) you are referring to.
You know that Kelley has a consumer blue book and one just for subscribing dealers? For ~$400 a year you can get the Kelley Wholesale Blue Book. Guess which book the dealer will pull out when you go to trade?
Remember that none of the books will buy your trade, and our prices may not reflect what your car actually may sell for at auction tomorrow. For a real world cross check, look at Real-World Trade-In Values - Terry was within $100 of Edmunds TMV when I asked him about my recent Outback purchase.
Jul 26, 2003 (3:06 pm)
I use the WWW.KBB.com trade in value. Seem to me that most dealers are very close to those numbers when discussing trade ins, unless there are other reason why the dealer may want to pay you more, over stock, end of year, etc. Most dealers are along the line of KBB's trade in value for fair or good condition. The banks use NADA and its numbers are similar to KBB. In the case of trade in values, there is only once price, the price the dealer and the buyer agrees upon. Just wonder where the difference in number comes from. It may be that one use wholesale value plus some profit margin, and the other takes the average actual trade in transaction price, the only problem with a pricing structure like that is that alot of the time, a salesman will bring up the trade in value to supplement for other issues.
#441 of 473 more hitting the books
by steve_ HOST
Jul 26, 2003 (4:08 pm)
My seller, a retired banker, wanted to use NADA back in April to set prices. The price given was a lot higher ($2k) than I ultimately got my Outback for, since I had to use TMV, being a host here and all <g>. My theory was that the bank used NADA because it had higher numbers so the bank could justify bigger loans to people. I don't think my theory holds much water though.
From what I keep reading over in Real World Trade-In Values, the good dealers don't use the books anyway - they hit the auctions once a week or more and keep up with prices that way. They recognize the green peas because they're the ones thumbing through the books while the next car rolls through the ring.
Interesting stuff - I think our numbers are better for consumers. ymmv....
#442 of 473 Trade-In with TMV
Jul 26, 2003 (11:20 pm)
Deferring to our sponsor, let's see those 5 year numbers: I've used the mid-size vehicles for same class comparison:
Acura TL 2003 TMV: 29257
1997 TMV: 9585 (32%)
Buick Regal GS: 2003 TMV: 27688
After $4000 Rebate:23688
1997 TMV: 4708 (20%)
Difference: 12% faster depreciation in the Buick over 5 years. This compares to the 1.5 year depreciation difference of: 30%--the gap closes as time goes on.
#443 of 473 Resale value
Jul 27, 2003 (12:47 pm)
Makes sense. Unless it's a collector car all vehicles are eventually worth scrap.