Depreciation: Foreign vs Domestic Vehicles - READ ONLY

70 messages, Last post on Jul 24, 2007 at 9:30 AM

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#6 of 70 Time .. by rroyce10 Nov 24, 2003 (11:21 am)
.... The market for used cars changes over time, particularly for distinct types of vehicles. The economy, leasing, warranties and redesigns all have significant impact on the supply and demand for new and used cars. Comparing one time period or one vehicle type with another makes comparison very tricky. Bang.! .. right on the money.! .. great post, great example .. Terry.
#7 of 70 by 5speeder Nov 24, 2003 (11:49 am)
dardson--I'm not an expert here, but 35% for 2 years on a Solara seems mighty steep. When you say "resale price" you mean market value and not trade-in value, right?
#8 of 70 to all by dardson1 Nov 24, 2003 (8:42 pm)
My point is not to down-grade foreign makes; but a well equipped Honda Pilot lists for $31k+ and sells with maybe a $2k discount. A comparable Tahoe lists for $37k and discounts + rebates to very similar $. I'd bet two years from now they'll have similar wholesale numbers. Depreciation-wise the Chevy will look bad and the Honda will look great.....but the money's the same.
#9 of 70 by 5speeder by dardson1 Nov 24, 2003 (9:06 pm)
I'm talking trade-in numbers (all the numbers I mentioned were trade-in amounts). I was very surprised by the Solara. We traded it after 18 mo. for an 01 Lexus. During the process the sales manager (Lexus) pulled up the auction numbers (Manheim) on his computer and a loaded up '00 SLE V6 with every option with similar low miles was "all the money" $19.5k. The car lised for $31.9k and bought for $29.5k. I double checked with the Real-World-Trade site here, and was told $19.5k was a deal I should grab.
#10 of 70 Just a thought... by steine13 Nov 25, 2003 (2:03 am)
...but the market for used cars over $20k might be pretty difficult... When you got $19,5, the store would want to see at least in he $21-22 range and "ask" $23,5... at that figure, a lot of people would go for the new car... esp. with the new model around the corner. I know I would, unless I knew how the car was treated. If you had done this in MI, the sales tax would have been $1800... that is gone immediately. I think you're talking pre-tax numbers, though. Figure a vehicle in that price range has "about" a $2,500 spread between wholesale and retail... the rest is what the car actually lost in value. You probably would not have been any better off had you bought a certified 2000 RX300 for the same money... and those hold their value like crazy. My point is, it's not so much the loss in value your fighting, it's the spread between wholesale and retail on a pricey vehicle, combined with short ownership. You would really be hurtin' had you tried this 18-month exercise with a Cougar, me thinks. Coupes are tough in any case. I'll take your 18-month old Tundra 35% behind street price, though! -Mathias
#11 of 70 dardson by tblazer503 Nov 25, 2003 (2:43 am)
you are still comparing a Full Size SUV to a Midsize SUV. Compare a Chevrolet Trailblazer to a Honda Pilot. I bought my Trailblazer for about 29k in (early)sept '01, Retail price was 31k. Traded in nov '02 for 21k. yup, thats a 30% hit in a year. Now they are worth about (guessing) 17-18. that's almost a 40% depreciation in the 2 years. Pilot, say invoice at 29k, you will be hard pressed to find a 2 year old one for less than 20k I would imagine. Of course, let's not forget that the 3k rebate on the Trailblazer came out after I bought it. Purchased sept 10, 2001. Which would probably also fit in with your timing on both cars. 'If' I had bought at the right time, I 'may' have lost only 20%(6k) but the rebates weren't being seen, and I am not a fortune teller. On the other hand, I bought my '03 Accord in Nov '02, for 20k and was offered 17,5 on a trade-in after negotiating.... hmm. Try that with any domestic '03. As a real-life comparo... there are 2 '01 Sequoia LTD's in the sunday paper. 31k, 32k. '01 Expeditions in the paper(4) are from 20-23k all "loaded" in different arrays.... an '04 EB expedition is on CD.com for about 36k. a Sequoia '04 LTD, 42k. Both are 'base' models, can go up by adding leveling susp, etc. the Sequoia loses about 10k(25%) in 3 years, the Expedition, 14.5k(average 40%) in 3 years. Not even factoring in that cars seem to go up about $500.year.
#12 of 70 by tblazer503 by dardson1 Nov 25, 2003 (8:04 pm)
OK, I'll bite......In February of '02 I shopped a Sequioia SR5 vs a Tahoe LS. Never found an SR5 with an MSRP less than $39k. All (the Toyotas) were packed with Gulf States Toyota Distributor's (Texas and most Southern states East) low-value, high-dollar, add-ons such as etched glass, road-side assistance, protection pkg (ScotchGuard and exterior Poly-Coat), etc., etc., amounting to $3k While I admit I didn't pursue the Toyota more than two sessions, the car was in short supply and the best offer I could manage was $1500 under MSRP or something close to $37.5k. I ended up with a lightly equipped Tahoe LS that listed for $34k+ bought at invoice less the $2k rebate + a very nice 5% APR.......$28,000. The estimated trade values determined by Edmunds may or may not be accurate; however, their accuracy should be equally good or bad from vehicle to vehicle. If you use Edmunds to determine a trade value for both cars, a Tahoe equipped like my '02 = $21,800 and an '02 SR5 = $26,100. Had I bought the Toyota I should expect $32k+ to be as good as the Tahoe. Even if I subtract the $3k that Gulf States socks us Southerners with, I ought to expect $29.5k trade value. Tell me where I'm wrong.
#13 of 70 From what I have seen by tblazer503 Nov 25, 2003 (8:36 pm)
on the "real world trade in values" thread, the Tahoe, as with a few others of the full size truck family are just as good if not better as Toyota. In terms of the minivans, compact truck, midsize SUV, car, etc.... I think that the foreign will most usually be your best bet. The whole 3k package is just wrong... IMO.. sounds like they cornered the market on that one... terrible.
#14 of 70 dardson ... by jlawrence01 Nov 25, 2003 (9:45 pm)
You may find one or two classes where the depreciation is less on a domestic vehicle vs. the major Japanese name plates (Honda, Toyota). But across the board, it is not the case. Personally, I prefer vehicles with rapid depreciation, especially when they are models that have a good reliability record. IMO, a 2000 Buick Century is tremendous value over a similar Honda Accord or Toyota Camry.
#15 of 70 jlawrence by masspector Nov 26, 2003 (3:57 am)
"Personally, I prefer vehicles with rapid depreciation" I assume you mean for you to buy used and not new?

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