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Hatchbacks Hyundai Accent 2007 Hyundai Accent v 2007 Toyota Yaris Lift
442 messages, Last post on Aug 31, 2008 at 8:32 AM
You are in the Hyundai Accent Forum. Your Host is pf_flyer
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Replying to: joe97 (Dec 17, 2006 9:46 am) Do you actually think owners of a $10K new car care much about purchasing power in the first place? I don't. Many times the money you saved by paying less than the competition upfront would far makeup for the difference later. You seem confused. Edmunds calculates residual value by evaluating a car's original TMV (which includes all incentives at the time) with the value of the car after 5 years of ownership. You arn't saving any money because those "money savings" in the form of rebates/incentives have already been reflected in the Edmunds TMV. Generally, large incentives/rebates have a negative effect on overall resale value so you really arn't gaining anything in the process (thus the reason why you won't see Honda giving many discounts). Refer to http://www.edmunds.com/reviews/list/top10/115613/article.html The other issue not contemplated by pure empirical resale data is the ability to sell a particular used car in private sale. While Edmunds may provide, for example, that a given seller should be able to make $3,086 from the sale of a 2001 Hyundai Accent, the numbers do not reflect the difficulty in obtaining that sale. Cars such as 5+ year old Accents which wern't exactly in high demand when new, have an even lower demand on the used car market compared with a Toyota Corolla or Honda Civic of the same vintage. Gauging your ability to sell a particular used car is easy from my experience: (1) locate your newspaper classified listings (cars.com) and write down the contact info for the sellers. (2) contact the sellers of the cars a week or 2 after the ad originally appears and ask them if the car was sold and for how much. I did this a few months ago with 8 ads attempting to sell 2000-2002 Hyundai Elantras in my area. Of the 8 cars listed, 5 were sold and 3 remained unsold. However, of the 5 sold, ALL were sold at close to the trade-in value for these respective cars because they could not get even close to the private-sale value. The owners of the 3 that remained unsold informed me that all potential buyers let them know that there was no way they would pay private-sale prices for used Hyundai's with no remaining warranty. I did the same study with 8 owners of Honda Civics of the same vintage in the area. All were sold at or higher than private-sale value with days of the the initial ad. Subsequent ads were not needed. (2 were sold at dealer-list price and those 2 cars were sold literally within hours of placing the ad)
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Replying to: backy (Dec 16, 2006 10:53 pm) |
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Replying to: germancarfan1 (Dec 17, 2006 10:21 am) 1) Do you actually think owners of a $10K new car care much about purchasing power in the first place? I don't. 2) Many times the money you saved by paying less than the competition upfront would far makeup for the difference later. Both sentences are independent of each other, as indicated by the period. Did you figure out why percentage is not always the better indication?  Thanks for that suggestion but I probably won't have time like you did to perform the study, unless you are willing to take over my responsibility at Lehman Bros. By the way, did you sell your supposedly, "troubled" Elantra yet? Do you have your V-dub yet? I still don't understand why you bought your Elantra in the first place.  and I still would like to see photos verifying your claim of your automobile.
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Replying to: carloverfl2 (Dec 17, 2006 11:59 am) Suppose you are negotiating with someone regarding the use of a car for one year. He gives you two options, take one of them or leave it: either pay him $2240 for the use of the car for that year, or pay him $2675. Which option would you choose? I think there is a misconception with some people that "residual percentages" are the end-all to measure resale value. Maybe for some people they are, because they like to think that they didn't pay as much for one car than another car because the "resale percentage" was better. What I am trying to encourage buyers to do is to not focus on percentages, but on actual dollars out of pocket--the cash you will lose in depreciation. When you do that, I think the resale value picture for cars like the Accent is not bad at all. And it enables the buyer to focus on buying the car that they like driving the most, rather than fretting over percentages that have no meaning to the average person and their finances. So that is what I wanted to say, and I will drop the subject, assuming there are no more personal attacks on me for simply stating my opinion in this matter. |
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Replying to: backy (Dec 17, 2006 2:32 pm) assuming there are no more personal attacks on me for simply stating my opinion in this matter. Pot calling kettle black now? Refrain from abusing users over on the Yaris forum for the sake of all of us 
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Replying to: germancarfan1 (Dec 17, 2006 3:04 pm) That is not correct: However, please note that the TMV prices do not take into account the following items: * Manufacturer-to-consumer rebates - these are different from manufacturer-to-dealer incentives and don't affect the actual transaction price; the consumer usually has the choice either to apply these funds against the sales price as a down payment (lowering the amount to be financed) or to accept a check from the dealer for this amount. * Tax or Title * License/Registration Fees http://www.edmunds.com/about/pricingtable/lo/about_pricing2.html Since the example that you started the discussion on shows that after one year, you will have spent more on a 2006 Corolla CE than on an 2006 Accent, I am not sure how you can conclude that if you plan on keeping an Accent less than 6 years, it will be a poor financial investment. I don't have a master's degree in economics, but I always thought that one year was less than 6 years. But please forgive me, I am just a poor math major and MBA. 
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Replying to: germancarfan1 (Dec 17, 2006 3:04 pm) |
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....I'm not afraid to admit I have lousy math skills, but I can recognize when some folks need to chill and have a cup of eggnog, or two. Let's keep it friendly, please. |
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