Last post on Apr 13, 2007 at 11:55 AM
You are in the Sedans
What is this discussion about?
Hyundai Sonata, Toyota Camry, Honda Accord, Nissan Altima, Volkswagen Passat, Mazda MAZDA6, Ford Fusion, Subaru Legacy, Saturn Aura, Sedan
#8385 of 12297 Re: AutoWeek got it exactly right [venus537]
Nov 05, 2006 (1:14 pm)
the majority of car buyers out there wear 'successful' car price negotiations, as some sort of ego gratifying badge of honor - which is fine, whatever makes them happy. But there are a few inescapable facts:
1) any car that sells at a high discount/rebatas/finance-lease buydown, must invariably have a problem with resale value
2) conversely any car that sells at a higher relative price must also hold a higher relative price at trade in time.
3) time is a best friend, for those that do buy those discounted cars simply because the 'residual' value difference will shrink.
4) cost of ownership estimates over a 5 year period are available from 'Intellichoice'. Using the most popular trims (4 cyl., one level above base trim, auto trans.) the 'cheapest' 2006 car to own, the Accord LX, followed by the Camry LE - the 'worst', the Fusion SEL, and most expensive by far, the Mazda6. In this particular group the most expensive cars to buy also end up being the cheapest to own - a fact not lost on the dealers who sell them.
So while it may make you feel good getting a 'great' deal on that Ford/Mazda/Chevy, the fact does remain that you are likely better off paying that extra few grand on that Camcord. And the Hyundai Sonata GLS? - Middle of the pack, despite the long warranty and lower initial cost.
#8386 of 12297 Re: AutoWeek got it exactly right [captain2]
Nov 05, 2006 (2:06 pm)
I looked at that intellichoice site, looks like they use pretty poor information on pricing. For example on a 2006 Mazda6, which has $3500 in rebates currently available, they give a target price of $200 over invoice. On 2006 Accord, which has $750 cash to dealer incentive available, they give a target price of $600 over invoice.
So according to this the dealer is grossing $1350 over invoice on the Accord, but $3700 over invoice on the Mazda6. Therefore, their starting point has overstated the selling price of the Mazda6 by $2350 relative to the Accord.
#8387 of 12297 Re: AutoWeek got it exactly right [captain2]
Nov 05, 2006 (2:25 pm)
You're preaching to the choir with me.
#8388 of 12297 Re: AutoWeek got it exactly right [captain2]
Nov 05, 2006 (2:28 pm)
You obviously don't know too much about cars and especially about the car market It is easy to see that because you are pretty much wrong in everything you say..
And to give you an example... I bought a Mazda 6 in 2003 for 16500(sticker price was 22700)and drove it for 60000 miles. Trade it in at the beginning of 2006 and got 11400(depreciated 5100 in 60000 miles). In 2005 I bought an Accord LX and due to the poor quality that Honda vehicles exhibit this days I trade it in after 4 months and 5500 miles and lost 3800. So not only that the Accord didn't come even close to the driving experience that Mazda offered but the loss at the resale was a lot bigger considering the mileage and time frame.
From my experience Mazda 6 beat the Accord in absolutely every possible aspect. So quit telling people about cost of ownership estimates... because they don't match the REALITY.
#8389 of 12297 Another depreciation comparison
Nov 05, 2006 (2:29 pm)
for some 2006 4 cylinder models that you refer to...
Edmunds "true cost to own" for Accord LX SE shows $11,111 depreciation for 5 years, which is 55% of the initial transaction price that edmunds gives.
The Mazda6 sport model $11,545, which is 56% of the transaction price that edmunds gives.
For Fusion SE depreciation is $11,819 and 63%.
Sonata GLS $12,240 and 62%.
#8390 of 12297 Re: Another depreciation comparison [jeffyscott]
Nov 05, 2006 (2:44 pm)
The transaction price for a Mazda 6 is a lot lower than Edmunds says so the result is a much smaller depreciation hit...
#8391 of 12297 Re: AutoWeek got it exactly right [captain2]
Nov 05, 2006 (3:27 pm)
regarding the mazda 6 total cost of ownership from intellichoice...just looked at what they said for the target price on a v-6 hatch and it's 5k TOO HIGH compared to ads that are running in our area for these cars. being 20% off is a lot and makes the real total cost of ownership for the 6 a much different equation.
#8392 of 12297 Re: Another depreciation comparison [fasterthanyou]
Nov 05, 2006 (3:32 pm)
Perhaps, but the Edmunds figures are a lot more accurate than intellichoice's. At least Edmunds accounts for a $2500 rebate on the 6.
#8393 of 12297 Re: AutoWeek got it exactly right [fasterthanyou]
Nov 05, 2006 (3:46 pm)
Vehicles don't depreciate in a linear manner. You're going to get hit hard trading in any vehicle after just 4 months.
Your particular Accord may have had poor quality but in general Hondas continue to do very well in quality surveys.
#8394 of 12297 Re: AutoWeek got it exactly right [venus537]
Nov 05, 2006 (5:59 pm)
Your absolutely right....you will always take a big lost if you trade in the first few months of ownership...and as far as quality goes I also have always had good experince with Honda....never a problem yet.