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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
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Replying to: blueiedgod (Jul 20, 2007 9:54 am) 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. |
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Replying to: advequityguy (Jul 20, 2007 11:08 am)
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Replying to: advequityguy (Jul 20, 2007 11:08 am) In the local paper just today there's an ad for an '01 Civic EX for $10,995 (no further details). This is at a big (non-Honda) new car store. Let's see, it's just now turning seven years old. $700 per year times 7 equals $4900 plus $10,995 equals $15,895 - which is about what it would have sold for new. |
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I bought this car in 2004 for $9,500 from a used car lot with 60,000 miles on it. Sold it in 2006 privately for $8,500 with 80,000 miles. What do you guys think? |
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Replying to: exb0 (Jul 20, 2007 1:15 pm) In any case, depreciation is not measured by the amount that is asked for by Carmax, it is measured by the amount paid vs. resale. In this case, the depreciation would be $8750, not $3000. ($8750 due to the Carmax $250 fee). I'm not kncking the Civic. It's a cheap, utilitarian car that hold value better than average. No matter how big a Honda cheerleader you might be, it does indeed depreciate just a wee bit more than 2 grand in 3 years. Heck, it depreciates more than that as soon as you drive it off the lot. |
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Back in July of 2004 I paid 24,500 OTD including Lojack for my MINI Cooper S. I sold it two years and 30,000 miles for 21,500 minus the cost of two tires so about 21,000.
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Replying to: british_rover (Jul 21, 2007 5:29 am) Curious as to why someone would pay that for a 2 year old car with 30k miles when they could get a new one for a couple k more. High demand for the S?
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Replying to: jipster (Jul 21, 2007 5:41 am) This was also just as the body style change was being announced and I think many people assumed the new body style wouldn't be as good as the old one. I sold it at just the right time as they old body style MINIs were actually being discounted as the new Body style arrived. If I had sold it a few months later I wouldn't have done as well. |
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I believe the story to be exactly true, as told. It's just that the Civic Si at that time was THE STUPIDEST CHEAPEST BESTEST new-car deal and I'm still kicking myself for missing it. It's not typical, though, that you can have almost zero depreciation for 3 years. Still and all, nothing beats Honda in the resale department. -Mathias
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Replying to: steine13 (Jul 21, 2007 7:27 am) |
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