Terrible Resale Value?

[unhappymeal]

Originally Posted by PNW FRS

Maybe with longevity (age) comes some perspective.... but I never cease to wonder why people think that cars are supposed to hold value (i.e., high value) if the used vehicle falls into the category of "normal use." Unless a rig is unique (Nissan GTR, Lexus LFA, etc.) - and in most cases - low mileage (use), the expected percentage of depreciation is going to occur.

I understand that people work hard... try to spend their hard-earned dollars wisely and prudently... but for 99% of new car sales... this is not a case of "investing" money for some type of higher-than-normal return. Most cars are simply a mass-produced commodity that looses value as newer models are injected into the marketplace.

I think for quite a few buyers, this may be their first car purchased new. They may not be used to the brutal depreciation curve that new cars go through.

If they were honestly concerned with re-sale, they should've purchased something like a WRX STi (assuming they could stomach the insurance), drive it a year or two and sell it for 80% - 90% what they bought it for.

As for the Twins, many people have already touched on the factors working against them, but I will say that the re-sale is still not bad. It's not Lexus or Subaru in the North East great, but it's still not bad. If they wanted to see real bad depreciation, they should start looking at flagship luxury models or domestic luxury models.

My ATS lost 38% the first year and it's grown to 60% in the second year (i.e., it's worth 40% of its sticker price). That is bad depreciation.

[hanabie]

Seriously the used price is the same as 2013 prius.

[Watch Me Run]

As a buyer looking at cars here is what I see:

2013 examples have had issues that 2014's and 2015 fixed from the factory.

As explained to me "these cars are easy to wrench on, so many people put all sorts of mods on the car and ride them hard. When they go to sell it they put all the stock parts and you'd be none the wiser unless you really know what to look for" which causes 'fear' in the buyers market.

2017's are so much better in interior quality, really overshadows the 2013 in many respects.

Buyers and Sellers can be spaced quite far from each other creating logistical challenges.

For those reasons, as a buyer I am not enticed to purchase a 2013 unless the price is irresistible, and when it is the feeling of something being wrong is very strong.

[PNW FRS]

Imagine paying over $85K large plus tax and license for a 2014 Porsche Boxter S.... and then selling it today...

https://www.cargurus.com/Cars/l-Used...ting=145472332

Just over 2 years old.. under 7K miles... a "S" model... and only asking $60 large -- a ~30% hit in value if one assumes original price was $85 large.

(Note: this is "retail" - imagine what the previous owner received if it was traded-in...)

[soulreapersteve]

Originally Posted by PNW FRS

Imagine paying over $85K large plus tax and license for a 2014 Porsche Boxter S.... and then selling it today...

https://www.cargurus.com/Cars/l-Used...ting=145472332

Just over 2 years old.. uynder 7K miles... a "S" model... and only asking $60 large -- a ~30% hit in value if one assumes original price was $85 large.

(Note: this is "retail" - imagine what the previous owner received if it was traded-in...)

This is why for my next car (and onward), I'm going to find gently used ones where the poor sap already took the initial depreciation hit. Learned a big financial lesson buying this car new and wanting to be first owner.

Just to think, what I paid compared to what my car is worth now.. could've went to my retirement or other investment account

[Train]

According to blackbook, the depreciation hit on my car was >10k CAD (i guess that's my fault for driving 33000km in one year)...I dont particularly find much loss in this information since I plan to drive this car til it falls apart.

[rastapete]

From Edmunds.com

[chaoskaze]

Our car depreciates, but it's actually not that bad.

What I do see is ppl who owns this car makes bad financial decisions & tries to sell it quick driving the perceive value of the car down especially in North America .......


This probably has to do with the fact many young kid are owner.. + the fact it's not an expensive car here in North America.

But our car does have a decent used price compare to some cars, for example ... civic si.


Sent from my iPhone using Tapatalk

[serialk11r]

I'm trying to sell mine in California too, and I've been having trouble as well.

The strange thing is, my 16k ask price seems to be very much in line with what dealers are willing to sell the car for. Thus, I'm not going to budge, because I'm not convinced that if I drop it to 15k that it'll attract any more buyers. It's a lack of liquidity problem, not an excessive depreciation problem.

[mrg666]

One reason for low used value is because some of the twins are heavily modified and/or abused. I would be extra careful not to buy someone's used project car or tracked car. I avoided buying used for this reason. Maybe 10-15 years later the twins that stay in good condition will be valuable.

[Impureclient]

I wouldn't touch a used twin or any sports car from a seller under 35-40ish since it's a good bet it was thrashed around.
When you get around that age then you just kind of slow down and not try to kill your car.
If your car is in the state that it appears in your avatar then maybe pull all the vinyl off or any other mods that imply a younger owner.
Also, grow a nice thick mustache, wear a sweater vest and talk about the good ol' days.

[86geek]

Originally Posted by soulreapersteve

This is why for my next car (and onward), I'm going to find gently used ones where the poor sap already took the initial depreciation hit. Learned a big financial lesson buying this car new and wanting to be first owner.

Just to think, what I paid compared to what my car is worth now.. could've went to my retirement or other investment account

As my late grandfather used to tell me, "The car will always be there, a brand new car is a luxury and it will depreciate as soon as you drive it off the lot!"....He told me this because I wanted him to buy me a new 1981 Toyota SR5 Liftback. Two years later I bought a used one.

[humfrz]

Originally Posted by Impureclient

...............Also, grow a nice thick mustache, wear a sweater vest and talk about the good ol' days.

Hey, maybe I should go into brokering cars for a retirement income supplement ........


humfrz

[Impureclient]

Originally Posted by humfrz

Hey, maybe I should go into brokering cars for a retirement income supplement ........


humfrz

If you have a mustache, you are golden. When I was buying this car, I totally didn't trust the salesman because he didn't have a mustache.
I don't have one so you shouldn't even believe anything I'm saying here.