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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
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?
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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. |
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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?
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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. |
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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. |
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| 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 | |
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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. |
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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. |
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Replying to: oldfarmer50 (Jul 11, 2007 3:45 pm)
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