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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
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Back in 2002-2003 my girlfriend and I bought new cars. I bought a 2002 Honda Civic Si, she bought a 2002 Ford Focus. Both vehicles were 5 spd stick, with power windows, sunroof, power door locks, remote keyless entry, air conditioning, cruise control, alloy wheels, both had 2.0 liter engines. Both cost about the same, $14,500 for the Civic, and $15,000 for the Focus. Both were financed through respective manufacturer, Honda had 1.9% APR for 60 months, and Ford was 0% APR for 60 months. In 2005 we decided to change to small SUV's. I took my Civic to the Honda dealer to trade in on a 2005 CR-V. Dealer gave me $12,500 for the Civic ($20,500 for brand new CR-V EX 5 man). I owed about $8000 on the Civic by then. Girlfriend took her Focus to Ford to trade in on the Escape. Dealer offered her $6000 for the Focus. She owed about $8000 on the Focus by then. She ended up selling it privatley for $7000, paid an extra $1000 to pay it off to release the lien. Honda Civic: $14,500 - $12,500 = $2,000 for 2.5 years in depriciation. Ford Focus: $15,000 - $6000 = $9,000 for 2.5 years in depriciation. You make conclusions. |
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Replying to: blueiedgod (Jul 19, 2007 3:49 am) You probably paid too much for the Focus back in 2002 though. |
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Replying to: blueiedgod (Jul 19, 2007 3:49 am) Well, I would have to question your numbers a bit. But, I agree that it wasn't a wise finacial decision for your girlfriend to sell her Focus. She should have held onto it for another 3 or 4 years. I have one for you though: 8 year old Olds Cutlass Supreme: Paid $1,500...owned 7 years... sold it for $750. $1,500 - $750 = $750 for 7 years depreciation. Not to bad for a domestic huh?  Was a very nice car when I bought it, not so good when I sold it.
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Replying to: blueiedgod (Jul 19, 2007 3:49 am) You claim that you bought a 2002 civic for 14500 and traded it in 3 years later for 12500. A car that does a very good job of holding it's value should be at about 50% of what you paid in 3 years. If a dealer gave you 12500 for it and intended to resell it, they would have to add a shop fee of at least $500 to the cost. Add that to the standard dealership pack, and you would have about 13900 as the lowest amount they could sell it for to brake even. They would then have to find a sucker, or I mean customer willing to spend $14000 on a 3 year old car that they could buy new for 14500, just like you did. With this logic, If you would have leased the civic, your lease payment should have been around 65 bucks a month, assuming you paid your taxes. If your information concerning resale is true, Honda financial is REALLY taking advantage of the good ole American consumer. My conclusion is this: Either your friendly Honda dealership really rang your bell on your CRV purchase, or we're being just a bit misleading with our little parable. I'm thinking it's the latter. Which Honda dealer do you work for, BTW?
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Replying to: jipster (Jul 19, 2007 4:41 am)
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Replying to: advequityguy (Jul 19, 2007 9:34 am) While I would not do it, there are a lot of Ford Focus sold for $15k or more. The sticker on a fully loaded top-end model is $17.6k when I last entered a Ford dealership ... and that would be one of the WORST new car purchases.
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Replying to: jlawrence01 (Jul 19, 2007 12:36 pm)
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Replying to: advequityguy (Jul 19, 2007 12:42 pm) |
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Replying to: blueiedgod (Jul 19, 2007 3:49 am)
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Replying to: metro123 (Jul 19, 2007 4:22 pm) I doubt Honda had that much in incentives on the Civic back then although I suppose it is possible since the SI hatchback was a very unloved vehicle. CIVIC SI MSRP |
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