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Sedans Mainstream Large Sedans Comparison
6844 messages, Last post on Mar 23, 2009 at 12:32 PM
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Replying to: captain2 (Oct 25, 2007 7:50 am) I would think that any incentives that knock off the sale price of the car would close the gap between purchase price and resale value later on down the road. I mean...if you have to identical models bought at the same time, but driver 1 paid $27K and driver 2 paid $24K (for whatever reason). Now lets say 3 years have passed and both cars are in the same condition and have the same mileage and they go to trade them in. If the resale value for that particular model is $19K. Driver 1 suffers a greater loss than driver 2. Now...this may be a bit broad, but I did a comparison using Edmunds used car research. I used a 2006 Azera Limited and a 2006 Avalon Touring. Under both I checked all the available options. I selected black as the color, input 40K miles under mileage and selected Outstanding as the condition of the cars. Now...from what I know when I was doing my research when I shopped my Azera, an Avalon Touring (fully loaded) priced out at about $34K. The Azera Limited w/Ultimate package (fully loaded) priced out at about $27K. Now please be mindful that these numbers reflect prices and values in MY area. The numbers will be a little different for those in different areas. This is just a representation. Here are the numbers that Edmunds shot back for each one. Avalon Touring: Trade-in Value - $24K Private Sale Value - $26K Retail Value - $28K Azera Limited: Trade-in Value - $18K Private Sale Value - $19K Retail Value - $21K According to my math, both cars seem to do just as well as the other when it comes to resale value after almost 2 years. Gotta remember, the Avalon starts out at a higher price, so the resale will be at a higher price. Wow...this really opened MY eyes after doing this! 
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Replying to: allmet33 (Oct 25, 2007 8:48 am) let's think about this awhile. My contention is that the $19k must also go down when the purchase price goes down $3k and probably a similar amount. Why is this? How about because all resale values are relative to purchase price at any given moment. If magically the Avalon XLS starts selling for that same $27k that supposedly you can get an Azera ltd for it would be bad news for Avalon resale values. Look at what happened to Ford 500 resale values the instant that they started floating $6k+ discounts on the thing so they could clear the lots for the Taurus. So, bottom line - it is better for you folks that spent the money on an Azera that it does develop some sort of quality reputation AND Hyundai can finally command a little more money for them because of that. The first scenario may indeed be happening, the second one IMO is still a ways off - that 'Korean car' perception that I think you'll agree is becoming more and more unfair. 
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Replying to: allmet33 (Oct 25, 2007 8:48 am) using your examples relative to your $34k for that Touring (may be high mine was right at $30k 2 years ago) and the $27k for the Azera Limited, both cars have lost the same $6k of value over your time frame - meaning, of course, they both effectively cost the same to drive and that the Avalon is not necessarily a more expensive car to own...
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Replying to: captain2 (Oct 25, 2007 9:25 am) Did your Touring come with ever available option??? I'm just asking because that is was I plugged in. The Avalon just costs more when it comes to paying for it. If you got the same financing terms on both vehicles, say 2.9% and no money down...the difference between the two car notes would be maybe $40-$50/mo. So in that respect, it costs more to own a Toyota simply because it costs more initially.
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Replying to: allmet33 (Oct 25, 2007 9:43 am) My Touring BTW has about the only 2 options on it that were available at the time - a sunroof and a stereo upgrade, VSC wasn't an option at the time (thankfully). I paid $30.3K plus tax and title which also included a $1200.00 dealer 'profit pump' option package. It was only a few hundred off of sticker (or about $2 grand OVER invoice) - back in the spring of 2005, Avalons were hard to find and in high demand - if for no other reason than the 2GR engine that it came with. Unbeatable FE and power - something that still hasn't changed, 3 model years later!
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Replying to: captain2 (Oct 25, 2007 9:15 am) The price you paid doesn't change the resale value, it changes the amount you end up losing in the end. Yes...when a company starts offering huge discounts and incentives...THAT can affect the resale value of the car because the initial new car value is driven down. However, for the sake of an argument. Say someone goes in to buy a new Taurus today and pays $28K for it with no incentives or discounts. Then someone else goes a month later and buys the very same model and gets that $6K discount and pays only $22K for it. If the car is only worth $18K after 3 years, who do you think is taking the bigger hit? I mean, the first person paid $30K, but that doesn't mean he'll get more back than the person that only paid $22K for it.
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Replying to: captain2 (Oct 25, 2007 10:07 am) I mean...say you have A1 credit and you get financed at 2.9% and someone walks in with jacked up credit and gets slapped with 19% on the interest rate (personally, he/she would be a fool to buy a $30K car at 19%). Do you see what I'm saying? Those calculations that are offered are for that perfect world, not the real world. So...if you were able to get all the options available, the price would have been closer to that $34K mark I mentioned. |
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Replying to: allmet33 (Oct 25, 2007 10:07 am) I think we're finally getting close here - the reason why they don't ask is because they don't care and they KNOW what they can get for it reselling it. On late model trades specifically, what they can get for it is directly related to what a new one costs and that number continually changes as the manufacturers change their prices to meet market conditions. The cheaper anything gets to buy new, the more the resale value must suffer - and yes the opposite can be true as well.
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Replying to: captain2 (Oct 25, 2007 10:35 am)
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Replying to: allmet33 (Oct 25, 2007 10:40 am) of course not, although what you and everybody else pays for something does have a whole lot to do with what you and everybody else might be willing to pay for it with a few thousand miles on it. Enough of this, this conversation is definitely going in circles  The Avalon Touring BTW will sticker for $35k if you include a now $4k option package that now includes NAV (as well as the sound system upgrade and sunroof), something also recently made available. I would imagine, given the Avalon's popularity and the dealer's propensity to take advantage of such things, that it is probably hard to find one that you are not starting to 'work down' from $36 or $37.
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