New vehicle report

[gonefishie]

I got this report and the residual value portion got me a little concern. If I read it right, after 2 years this vehicle only worth 17.8K? It can't be right. BTW, I didn't buy it.

 

[BeaufortTJustice]

Re: New vehicle report

It's for that reason that I always buy vehicles that are 2-3 years new...I let someone else take "the new car hit" and I come away with a practically new vehicle for cheap. I got my Tahoe in early 2009 with only 18k miles (with complete service records) from a dealer for about 35% less than comparable new ones.

Your numbers do cause me to pause, however, because Toyota is known for above average resale value, along with Honda and their luxury counterparts (Lexus and Acura, respectively).

 

[Bifflefan]

Re: New vehicle report

Id say they are giving you realistic if not a little low number there. The fall off after that is not bad tho.
As stated i also buy a previously enjoyed truck just for that reason. I get one about 2 years old and keep it for 2 years. Except my F250 im keeping it till one of us dies...

 

[mscher]

Re: New vehicle report

Sound's about right.

You'll lose 20% the very second the tires leave the car lot and hit the road.

 

[eaglejim]

Re: New vehicle report

Looks right to me, my current van/tow vehicle (95 Astro) cost me $500 and that was 3 years ago.The last new car we bought was in the mid 80s

 

[Bob_VT]

Re: New vehicle report

That is an accurate residual following a lease and 12K miles /yr. That is the exact reason GM went in the hole.... GM was inflating the residuals and then when the vehicles returned they were actually worth less money then anticipated.

A toyota holds it's value .... look at the 60 month 60K mile value and that is 1/3rd of the retail. Now go find a competitive vehicle and you will not see that value being realistic.

 

[kenmyfam]

Re: New vehicle report

New vehicle is a big loser as soon as it is driven off the lot. Numbers make a lot of sense to me.
We buy at under 12 months old with low mileage and generally pay half the new price.
We still lose as soon as we drive it off the lot but not nearly as much or as
fast !!!

 

[gonefishie]

Re: New vehicle report

That report is of a 2010 model, can the same depreciation rate be apply toward a previous year model?

 

[skargo]

Re: New vehicle report

Buying a new vehicle is for suckers, I haven't bought new since the 80's.

 

[Knightgang]

Re: New vehicle report

Back in 06, I bought a 2003 Ford Excursion 6.0 Powerstroke. it only had 25,000 miles on it. New List was 51K, and I got it for 33K. Almost a 20K savings. I never buy new anymore...

 

[WIMUSKY]

Re: New vehicle report

That report is of a 2010 model, can the same depreciation rate be apply toward a previous year model?

Depends. My wife bought a new '06 Charger in '07. There was 200 miles on it from test drives and a dealers wife using it to go back and forth to work a few times. They had to sell it as used. It was a $29k car that she bought for just under $22k which was a little below base price. Can't beat that deal. We didn't have to take the first year depreciation hit. I guess it pays to shop around.....

 

[Knightgang]

Re: New vehicle report

Depends. My wife bought a new '06 Charger in '07. There was 200 miles on it from test drives and a dealers wife using it to go back and forth to work a few times. They had to sell it as used. It was a $29k car that she bought for just under $22k which was a little below base price. Can't beat that deal. We didn't have to take the first year depreciation hit. I guess it pays to shop around.....

That was not because of the miles, it was because of previous model year... They probably got a rebate from the MFG to sell it as a Demo model...

 

[WIMUSKY]

Re: New vehicle report

That was not because of the miles, it was because of previous model year... They probably got a rebate from the MFG to sell it as a Demo model...

I'm not too sure about that because I bought a new '07 Dodge truck in '08 with 50 miles on it and never received the same deal as the Charger. They were both bought at the same dealership from the same dealer that I knew... If I remember right, the dealer mentioned the miles on the Charger as the reason for the price drop.... Who knows.... Maybe after a certain amount of miles it's considered a demo...

 

[aspeck]

Re: New vehicle report

I'm not too sure about that because I bought a new '07 Dodge truck in '08 with 50 miles on it and never received the same deal as the Charger. They were both bought at the same dealership from the same dealer that I knew... If I remember right, the dealer mentioned the miles on the Charger as the reason for the price drop.... Who knows.... Maybe after a certain amount of miles it's considered a demo...

Unless things changed drastically from when we had a dealership, it is the dealer who decides what vehicles they will pay to put into the demo program. The miles don't have anything to do with it. There is a dealer cost reduction if the car is put in the Demo program. There is also a dealer cost reduction for prior year vehicles in inventory. Ultimately it is the dealer who decides how much to reduce YOUR cost in order to sell the vehicle. We had year old cars that were "desirable" cars and we did not lose money. We had leftovers that were hogs, dogs, and frogs ... and we sold them for up to $1500 less than they cost us because we were tired of paying the monthly interest on the floor plan - it was time to lick your wounds and run as fast as you could from that car.

20-30% depreciation on the car the first year and another 15-20% the second year ... basically 40-50% depreciation on a new car the first 2 years of ownership. If you are going to buy a new car, either get one off the lot when it comes off the truck, or wait till it has been sitting on the lot for 6 months or more ... reason ... there are "bonuses" that come to the dealer meant to pay for the first month or two of interest. If the dealer doesn't have to pay that interest it is money in his pocket that the salesman will never see. If the car has been sitting around for a long time, the dealer is tired of paying interest on the car and will offer bonuses to the salesman for getting the car off the lot, meaning the salesman and the dealer will accept a lower profit magin to wave goodbye to that car.

 

[Knightgang]

Re: New vehicle report

I'm not too sure about that because I bought a new '07 Dodge truck in '08 with 50 miles on it and never received the same deal as the Charger. They were both bought at the same dealership from the same dealer that I knew... If I remember right, the dealer mentioned the miles on the Charger as the reason for the price drop.... Who knows.... Maybe after a certain amount of miles it's considered a demo...

Could be either situation. But I do know that sometimes larger vehicles, like the 15 passenger vans, Large SUVs and such are sometimes driven to a dealership. They could arrive aith 300-800 miles on them, and still sold as new. Probably a combination of Miles and Year model, and they got the MFG approval for a demo sale. Would not always happen...

 

[Howard Sterndrive]

Re: New vehicle report

Buying a new vehicle is for suckers, I haven't bought new since the 80's.

yep,
+1

 

[gonefishie]

Re: New vehicle report

yep,
+1

Yeah but the new car smell and feel is so nice though, like the perfume on that smoking hot stripper.

 

[Fl_Richard]

Re: New vehicle report

Yes but like the new car smell; after a few laps the perfume on the stripper is all gone...

 

[skargo]

Re: New vehicle report

Yes but like the new car smell; after a few laps the perfume on the stripper is all gone...

And if you make it a point to get inside either often, it will cost you, believe me, BTDT, got the t-shirt...

 

[Mike Robinson]

Re: New vehicle report

I think what is most important is not whether you buy new or not. It's buying and holding on to a vehicle that lasts years without killing you in maintenance costs.

I bought Toyota 4runner new in '86 then sold it in '08 with minimal repairs. Cost of ownership was less than $1000 a year (not including gas and insurance). We bought a new Subaru Forester in '06 and hope it will last as well.