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Smart Shopper Depreciation: Foreign vs Domestic Vehicles
70 messages, Last post on Jul 24, 2007 at 10:30 AM
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Replying to: advequityguy (Jul 20, 2007 12:08 pm) In effect, you chose 0% on the Focus instead of taking the $3000 rebate. In effect, you paid 12000 for your 2002 Focus, but you chose to take a finance incentive because the payments would be lower. Now that makes sense. 3 years later (and unknown mileage), a $6000 - $6500 trade value would be about right, using the ole 50% in 3 years for a car that does a good job of holding value rule. It does not sound to me like the Focus did that bad of a job. As far as the Civic goes, something still doesnt sound right. First off, I'm not sure of the difference between MSRP and invoice on a Civic, but I'm thinking its probably a little less than you stated. Normally, low end cars dont have very much markup, but I'm too lazy right now to verify this point. My original point remains. If Civic were going for $14500 back in 2002, and had a trade value of $12500 3 years later, that would lead to some wierd math. First off, that would mean 3 year old Civic were selling for $500 less than new Civics (after you figure in shop costs and pack). I'm not buying that one. Secondly, it would also mean that a lease on a 2002 Civic should have run you about $65 per month on a 3 year lease. I'm thinking the lease payment on one back in 2002 was probably a little more than that. I'm going to go out on a limb and make some assumptions as far as the Civic goes. First off, I'm thinking that in reality, It probably cost a bit more than $14500. The dealership may have told you $14500, but I'm guessing there's a couple thousand hidden in there somewhere - perhaps an ad unit? I'm also gonna take a stab at it and say that that same dealership offered you more for trade on it than anyone else, mostly due to tham sneaking an extra couple grand in on the backside of your CRV. Let's face it, though the Civic does a pretty good job with depreciation, there is no car on Earth that depriciates at a rate of $700 per year like you are claiming. Maybe a collectible car, certainly not a production car. And I'm thinking no one is collecting 2002 Civics. Pony on up to the bar and admit you were exaggerating just a bit.......all will be forgiven. A) There was no $3000 rebate on the 2002 Ford Focus in October of 2002. I remember going through the calculations whether to have her take the rebate and finance at 5-6% or take the 0%. I don't remember exactly what it was, but it was either $1000 or $1500 rebate. 0% financing made more sence (not knowing that we were going to be moving in 2.5 years and needing more suitable winter vehicles) B) If you stop by the library and pull newspapers (Stamford Advocate in particular) from January 2003, you will see new Civic Si's advertized for $15,000, (same ad had a 2002 S2000 for $27,000). This, in fact is why I decided to get it. It was advertized in the paper for $15,000, I talked them down to $14,500. Later, I found out that some people on ephatch.com paid as little as $13,800. I guess I should come clean and confess that I did buy the 2002 Civic Si on January 21st (I think) of 2003. Honda's model year starts in September. C)I see this everyday, people buying used Hondas for a little less than new ones sell at the end of model year. It beats me, but I know how to shop. Most look at the MSRP and turn to the used lot. You can see for yourself what the new 2007 Accords are selling for and compare it to the current used Accord price. It is indeed mind boggling. But, I can't complain, since it keeps my resale values high. D) I did not trade the Civic to the same dealer. I have moved to Buffalo, NY from Stamford, CT, and after the first winter, when I could not get out of the parking lot (car would high center on snow) I decided to get a small SUV. Honda CR-V fit the bill. I started watching the incentives. At the end of March of 2005, Honda, for a week or two, had a cash to dealer and consumer finance incentives to move the CR-V's (right after raising the MSRP prices across the board mid-year to help out the Domestics) E) The lease on the Si at the time was advertized at $150 or $160/month.
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Replying to: blueiedgod (Jul 23, 2007 1:14 pm) Depends where you lived at the time you bought the car, different regions have different incentives depending on days supply for that region. In 2002 you would get laughed off of a Honda lot here in Nashville if you asked for a discount on one of there hallowed cars. I am just waiting now for the story of how someone bought a new honda and sold it 3 years later and made a $2000 profit.
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Replying to: joel0622 (Jul 23, 2007 4:30 pm) The super discount on the Civic Si was for real. I'm convinced our friend here is on the level with his story. "I am just waiting now for the story of how someone bought a new honda and sold it 3 years later and made a $2000 profit." I can't help you with the "profit" story, but I have managed to keep depreciation on new cars under $100/month, sometimes significantly. Not Honda or Toyota, but GM. Not everyone with an unusual story is making it up. -Mathias
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Replying to: steine13 (Jul 23, 2007 4:59 pm) Well come on, tell us how. You can't just throw out there that you can buy a car drive it 12 months and resell it for $1200 less then what you paid. 
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Replying to: joel0622 (Jul 23, 2007 5:18 pm) |
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Replying to: joel0622 (Jul 23, 2007 5:18 pm) Sold it five month later for $16,000. Let's see, $74 divided by 5 equals slightly less than $15.00 per month.
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Replying to: cccompson (Jul 23, 2007 5:55 pm) Sold it five month later for $16,000. So it is true then....... There is a sucker born every minute
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Replying to: joel0622 (Jul 23, 2007 6:02 pm) Sold it five month later for $16,000. So it is true then....... There is a sucker born every minute Not necesseraly true. Some people are better negotiators than others, and some just have a knack for finding good deals. The original owner may have negotiated a much better deal on the Mazda than most people. So, even at $16,000 it was better than what most people paid for it. I actually looked at it, and I think it retailed for close to $20,000. This is not just a Protege, this is a turbo charged Protege with some serious upgrades.
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Replying to: blueiedgod (Jul 24, 2007 7:58 am) = Ha ha ha, I said this in jest and am not taking myself seriously.
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Replying to: joel0622 (Jul 24, 2007 8:02 am) Try using  instead of next time. You may get better results.
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