Last post on Jul 05, 2010 at 8:01 PM
You are in the Prices Paid - Buying & Leasing Experiences
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Kia Rondo, Car Leasing, Car Buying, Wagon
#367 of 388 Re: Rondo EX V6 3rd row [tward91574]
Jun 04, 2009 (4:45 am)
It depends on whether you can find a new 2008 right now. You may need to pay $3K-$5K more depending on options, but you'll get 20% more bumper to bumper warranty and 5 more years power train warranty on a new one. Not to mention the mechanical wearing in 13.5k miles and the worry on the unknown previous history (e.g. not probably break-in if it was a rental) should be the major consideration too. Most people do not realize the 10 year power train warranty, which is one of the prime factors in Kia's rating calulation, is not transferable. This is one of the main reason for the depreciation in resale value. Last but not least, if you want to sell it some time down the road, being the first owner of the car makes it more appealing. I sold my 13 year old Saturn at the high blue book price range within a couple days on craigslist because of that.
Don't get me wrong. I am not saying don't but used Rondo. I am only pointing out the factors you should considerate when you are looking at the price of a used one. Indeed, the lower resell value of Rondo makes it a good choice as its reliability is above average (just outside of top 10).
#368 of 388 Re: 2009 Rondo prices? [kasikin]
Jun 04, 2009 (5:09 am)
Of course this is rubbish.
If one buys a (18500msrp) 09 Mazda3 sedan for 15300, and it has a kbb 08 trade in of about 13000, one has eaten $2300 or so to drive it the 1st 12 months. $3000 off msrp represents a good deal.
If one buys a (24000msrp) 09 Chevy impala for 17500, and it has a 08 used kbb trade in of 10000, one has eaten 7500 to drive this (average) sedan the 1st 12 months. $7500 off msrp not so great a deal in this case.
If you financed it, you get to pay finance charges on the 2300 or 7500 for the loan term. Great if the Impala is a super hot contemporary car with backorder and in great demand, but as an average rental car in the worst recession in 20 years, not so great.
You eat this money to drive the 1st 12 months whether you own the car 1yr or 20 years. Depreciation is much less and surprisingly similar with most vehicles after the 1st 12 months or so..
Extreme example- the mazda and civic are amongst the best in this respect, and the Impala the worst, but illustrative.
Personally, I wouldn't get a ticket getting to the dealer to pay $16000 for a 09 Rondo with an 08 used trade in value of $9000. Or exhaust myself finding an 08 leftover new for $13000.
If trade in values are important to you, the previous post is relevant. Some of us drive our cars for 200,000 plus miles and don't worry about trade in values.
#369 of 388 Re: 2009 Rondo prices? [jfritsch]
Jun 04, 2009 (7:01 am)
If your point is that you are better off buying a one year old car than a brand new one, you may have a point. Although in that case I don't think trade in value is exactly the value you should be focusing on. Plus you have to decide how much you value the power train warranty in the case of Kia, because you get one with the new car and you don't with the one year old.
If your point is that you shouldn't buy a car at all because of the high first year depreciation, even if you plan on keeping the car until it dies, I'm not sure I follow. Why is what my car is worth one year after I buy it relevant to me if I have no intention of selling it for a very long time?
In your example of the Impala, a buyer has "eaten" $7500 in the first year. I agree, if they sell the car. Or if the choice is between buying new or buying one year old. If the buyer wants the car new for other reasons and is keeping it, I just don't see that it's a deal breaker. It's like my friends who say they "lost" $300,000 in their 401k's last year. I say yeah, if you sell or need that money now. Otherwise, it's all on paper. If your not retiring for 20 years, why does it matter?
#370 of 388 Re: 2009 Rondo prices? [jfritsch]
Jun 05, 2009 (10:27 am)
My comment is very specific to 08 Rondo at this moment. Other people may have a totally different way of money management and I don't call that rubbish.
Don't forget the $4000 incentives for 08 models and discounted dealer pricing (at near invoice price before incentive) has already covered most of the first year depreciation in resell value. Honestly, if one is trying to maximize their car value, trading in is not the way to go. If you check the kbb price for a used 08 model with 13500 miles from dealer, it is only a couple thousand dollars cheaper than a brand new one (or $3000-$4000 cheaper if you buy the used one from private party). Now you have to justify the $2000-$4000 saving versus the extra 5 years power train warranty, lemon protection, 13,500 miles wearing and warranty, and uncertain previous history. If you need to finance it, the better interest rate for new car should be factored in too. There is no absolute answer to this as different people may have different justification. These are just points worth to consider.
Again, this is about buying a 08 Rondo used or new right now.
#371 of 388 Re: 2009 Rondo prices? [tourist1292]
Jun 05, 2009 (1:13 pm)
"My comment is very specific to 08 Rondo at this moment. Other people may have a totally different way of money management and I don't call that rubbish.
Again, this is about buying a 08 Rondo used or new right now."
I agree with tourist1292, lots of talk about depreciation (especially irrelevant 1 yr depreciation) but not nearly as much about all the other factors. 0% financing on a new vehicle is a huge deal, nothing comparable for a used vehicle. EZ to do internet search for a new vehicle and know all details of the vehicle (color, options, condition "new"), with a used vehicle, dealers and private parties are very inconsistent in listing features and conditions which means more phone work, footwork, travel to distant towns and arranging independant vehicle inspections. A great price on the wrong car is not a good deal.
#372 of 388 Just bought 2008 leftover
Jun 10, 2009 (12:08 pm)
Ok Ladies and Gents: I just paid $15,500 for a new 2008 Rondo EXV6, with the 3rd seat and Premium Package, plus cargo tray and roof rails. Did I get a good deal? Two other dealers I was working with wouldn't go below $15,900 and this guy wouldn't take $14,900. So my head is still swimming in numbers, and fees, and holdbacks and factory/dealer incentives...I did get the $4,000 KIA rebate (obviously) but when I see KBB saying they're worth 10 - 13K -- I'm not sure I got the deal I was expecting...it's so hard to know what options people are talking about...So did I do good?
#373 of 388 It's all relative, but...
Jun 10, 2009 (12:33 pm)
...you did freakin' great! It's a great vehicle in so many ways.
Sure, somebody will negotiate a better deal somewhere, but your cost looks fine to me.
Again, by comparison, my 2007 LX I-4 (no cargo tray) cost me $16,800 20 months ago. So you get a new 2008 with a bigger engine, 20 months later, for $1400 less than what I thought was a very good deal for mine? That's terrific!
#374 of 388 Re: It's all relative, but... [garnermike]
Jun 10, 2009 (1:35 pm)
whew! I was like so confused by the end...I said the dealer -- I still think I could have gotten more off and his reply was "Lady, no one's going to Hawaii on this commission. I basically just made a $600 profit..." I don't know whether to believe that our not -- knowing that 3% holdbacks are built into the Invoice price and there must be SOME Factory/Dealer incentives to sell 2008s and that figure is unknown to me...
#375 of 388 Re: Just bought 2008 leftover [tootsdonovan]
Jun 10, 2009 (2:09 pm)
It is a very good deal. I got mine at $3000 more a few weeks ago but with leather package as well. So yours is $2k cheaper than mine. Anyway, mine was right at the average price of the week. I guess you are lucky in the area with quite a few in stock. There is almost none left in my area so I did not have much bargaining power.
#376 of 388 Re: Just bought 2008 leftover [tourist1292]
Jun 10, 2009 (2:42 pm)
Yea, you know, I was hoping you'd respond! I've read all your posts. I was on the fence about the leather. I've survived so long w/o toasted buns and that stuff does get hot in the summer time, I don't always blast the AC in my vehicles. I just didn't think that feature was worth $1k. None of the dealers I spoke with had the cars -- they had to get them. This one came from CT. Whoever wrote about the motherload in PA was right. One of the other dealers was ordering me one from PA and they decided to get a "truckload" so the PA supply is dwindling...I knew I had hit a wall when 2 of the 3 dealers walked at $15,900...This was my first car buying experience and I have to say -- I didn't like it one bit.