Edmunds.com | Inside Line | Auto Observer Your Account | Help | Directory
You are here:
![[F]](http://a332.g.akamai.net/f/332/936/12h/www.edmunds.com/media/townhall/webxicons/site.gif){kind=small}
Forums
Smart Shopper Smart Shopper-Archives Depreciation: Foreign vs Domestic Vehicles 
70 messages, Last post on Jul 24, 2007 at 9:30 AM
You are in the Smart Shopper-Archives Forum. Your Hosts are kirstie_h & tidester
| Which goes to show... the waters can be very muddied here because there are too many variables to make a definitive general statement about depriciation in domestics vs. imports. Are we talking below sticker, or above it on the new vehicles? Are we talking asking price or out the door on the used? | |
With all the talk about Toyota recalls, I thought it might be time to resurrect this discussion. Any change in the outlook for depreciation on domestic vs imported vehicles?
|
|
|
|
|
Replying to: kirstie_h (Sep 01, 2006 7:00 am) Any concerns about quality will likely be offset by the increase caused by the demand for fuel efficient vehicles. |
|
|
Replying to: kirstie_h (Sep 01, 2006 7:00 am) I think a big gap today is the quality of the vehicle at ~7-8 yrs and 100K. Put a '99 Lumina ot Taurus with 100K against the same Camry or Accord. It's a no-brainer since you know the next 100K will likely have less problems on the import, hence the difference in value. So with quality as a whole on par today I wonder what that means 5-7 years from now?
|
|
|
Replying to: krony (Sep 08, 2006 5:38 pm) 1. Reliable - owner feedback from J.D. Power, Consumer Reports, auto mags, newspapers, and word-of-mouth. 2. Good gas milage for the segment. Doesn't have to be the top. 3. Solid engineering/construction - crash testing and dependable/reliable. Strong power train in performance and durability. Parts fit inside and out. Decent materials used. 4. Desirable when NEW and USED. Basic Supply/Damand law. Style, performance, interior quality, and safety all effect this. 5. Affordable - good value for the $ - doesn't have to be the cheapest, but usually isn't the most expensive. |
|
|
Part of this discussion should include cost of ownership..Remember, nobody knows what a car cost them until the day they sell it.... Domestics often have significant rebates/incentives which lower the overall transaction cost of the car.... example: a new Lincoln town car appears to drops a ton in value the day you drive it off the lot...but on the other side you probably got a $10K-$15K discount (which is unheard of on many imports) off the $45K window sticker. Some folks will brag that they purchased a $45,000 car and whine that its only worth $27K a year later but they fail to consider that they paid $33K not $45K.... based on the transaction price the depreciation isnt bad but based on MSRP the depreciation is outrageous. |
|
|
|
| What about tax breaks/incentives.....for example, the Range Rover qualifies for a huge tax break if used for small business use? It changes the overall cost of ownership and makes the RR more affordable | |
|
I went into a Toyota Dealership on New Years Eve, 2003. I had some time to kill, so I went in to look at 4Runners, which I had researched. The salesman said he was upset with the Toyota Dealership. He quoted me a non negotiable price. It was $300 above dealer cost. It was over $2800 under MSRP. I took the deal. They allowed me more for my Honda Odyssey trade in than I owed on it. (I had just got the Odyssey back after 4 weeks in the shop with transmission problems and wanted to get rid of it.) It's not just American brand vehicles that get discounted. |
|
|
|
|
The one sure-fire way to avoid taking a beating on depreciation is to keep your vehicle until it has to be towed away to the junk yard. My 1985 Ford has over 250K on it and I finally think I have it broken in.  That old technology is a lot easier to fix too. Today I went out and it wouldn't start. On a new vehicle I would just tow it to the repair shop. Not with my old beater. I popped the hood, looked around, found a bad wire, patched it with duct tape and off I went. I bet I could still sell it for the $1500 I paid 10 years ago. |
|
You are here:
Forums
Smart Shopper Smart Shopper-Archives Depreciation: Foreign vs Domestic Vehicles
New? Join Now!
Forum Tools
Search Forums
Browse by Vehicle
Browse by Board
Browse by Topic
Today's Chats
