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Paying more than MSRP for (new) Hybrids, Depreciation/Value of used Hybrids

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Comments

  • falcononefalconone Posts: 1,726
    I would never buy ANY used car. That's just me. Everything we buy today is complex. I bought a Panasonic 50" LCD TV and was smart enough to buy the extended warranty. I already had to replace two defective bulbs. They have extended the warranty even further and redesigned the bulb. Bottom line... every car that is made today is complex. The Prius is no exception. I have comfort in knowing that for seven years I won't have to worry about anything when I do buy my Prius.
  • Okay the question is would on pay more than MSRP and since statistically extended warranties are not cost effective and you always buy them that to me means you are willing to pay more than MSRP.

    If you take the same warranty cost and put it in stocks or other interest accruing assets ,you would actually come out ahead and would then pay MSRP or less. The real bummer is reading all the fine print and exclusions on that extended warranty. However the key new item the HSD battery system is already covered by a manufacturers warranty.

    The Prius may be more complex because of the HSD systems and more software control of the locomotion process. And then there are those nasty Prius software problems that keep surfacing.

    Keep on Truck'n,

    MidCow
  • falcononefalconone Posts: 1,726
    Haven't heard of any software problems lately. I wonder why the media hasn't followed up on it? Oh.. btw... I am paying LESS than MSRP for my 06 Prius and I am getting the 7/100,000 warranty for $985. I'd do that with ANY new car I buy today. If you are keeping it for 3-5 yrs, it's not worth it.
  • The world does not revolve around E-Bay. Lots of other avenues to get the track record of Hybrids. You're right in some ways about being smart on the purchasing of older Hybrids. That much we agree on. I'd like to think that in the event that my hybrid goes beyond its warrantee I'll still do what I've always done & look for a bargan for used parts should the need arise. (and why not?) There are ways to be frugal. I once picked up a radio for my antique 73 Buick Riviera that would have set me back 250 bucks but thru a parts place I got it for 30 bucks. Nothing wrong with that! :shades:
  • gagricegagrice San DiegoPosts: 28,845
    I only use eBay as I have not found any other source of prices paid for used cars. If you know of a source feel free to share with us. Asking price is irrelevant in reality.

    As for parts on the hybrids. I think the Prius II has enough units out that parts should not be a problem. The Prius Classic sold very few in the US and may be subject to high repair costs. Just as the Honda Insight battery is over $5000 to replace. Hybrid repair costs are somewhat unknown, which makes resale value unknown.
  • falcononefalconone Posts: 1,726
    I checked KBB, NADA and GALVES and all of them are in close agreement. They all value the Prius a tad over 20k. I based this on my sister's car which is a 2004 package 9 with 34k miles. I think that's pretty good!
  • larsblarsb Posts: 8,204
    Gary, I have pointed out to you before that Edmunds TMV is based on "REAL SALES AT CAR DEALERSHIPS" and is not a guess.

    It is FAR better than the "all over the board" E-Bay prices. E-Bay is the WORST car buying model known to man.
  • falcononefalconone Posts: 1,726
    Agreed... Ebay is not at all representative of the market.
  • gagricegagrice San DiegoPosts: 28,845
    Gary, I have pointed out to you before that Edmunds TMV is based on "REAL SALES AT CAR DEALERSHIPS" and is not a guess.

    I'm not one to bad mouth our Hosts. I will accept the TMV prices set forth. Will you then accept Edmund's TCO on the same hybrids? If so the TCO for the Prius & Honda hybrids is higher than any of the comparables. The Prius & HCH show higher than average depreciation. Hybrids also show a higher cost per mile over the 5 year period.
  • larsblarsb Posts: 8,204
    OK, granted the TCO for the HCH is 42 c per mile and the EX is 41 c per mile. That can be virtually evened out if you consider gas savings with gas prices where they are and going to be - the higher gas prices go, the more the hybrids pay for themselves.

    The depreciation are estimates, which we know at this time have not yet come true - everyone knows that Used Hybrids are going for astronomical resale value, and that is going to continue for some time.
  • falcononefalconone Posts: 1,726
    I've never looked at the TCO but I am certain it takes into account depreciation. That still is a big if. When I think of TCO I mainly am concerned with maint. costs/fuel/insurance. I am quite certain the ownership experience will be a happy one.
  • gagricegagrice San DiegoPosts: 28,845
    We can expand on that and find that the Toyota Tundra full size PU truck has a TCO cost per mile the same as the Prius II. Both are $.49 per mile. You ignored the reason that the hybrids do not fare so well. It is depreciation over several years. Sure right now while the market is hot they bring big prices even used. The big question is how much will Toyota give you in trade 5 years from now on a new hybrid?
  • larsblarsb Posts: 8,204
    I'm sure someone has or will trade a 2001 Prius for a 2006 Prius. That will be a known number soon.

    But the problem with that is: we all know how "awful terrible insulting" dealers are when it comes to offering trade-in values on ANY car. Hybrids will be no worse or better - it's just another car, like any other car, that the dealer will want to LOWBALL you for on trade-in.
  • falcononefalconone Posts: 1,726
    I never trade in a car at the dealer. Even though there is a sales tax advantage, overall you're better off selling privately. With so many websites that cater to auto sales, it's very easy to sell a car privately these days. I know a great place in Rehoboth Beach, DE that takes cars on consignment. He always gets top dollar and you pay a small fee. This guy actually bought my Mini Cooper Conv. for 1k less than what I paid and I owned it for six months.
  • larsblarsb Posts: 8,204
    From another Prius owner on the web:

    "Well I went to the Toyota dealer last night with my 03 Prius and he offered me 16,500 for my car. I did the math and with 35,500 miles on the 03 I felt like it was the right thing to do. I lowered my payment by $5, got a 3 year warranty and a vehicle that has a lot more amenities than the 03."

    So getting $16,500 trade value for a 2003 Prius with 35,500 miles seems pretty darn good. This owner paid $24,200 for a new 2005 Prius with Package #4 at MSRP, only had to pay the diff of $7700.
  • falcononefalconone Posts: 1,726
    That's incredible!! I am quite impressed with how well the Prius value has been lasting. I checked KBB for the value of my sister's Prius and it is valued at $20,625 for a private sale. She paid under MSRP for the car (a few hundred) and she's had it for two years. She has no intentions of selling.
  • tdohtdoh Posts: 298
    Ha...in five years, some of those folks will be passing by in hybrids that'll make Railroadjames' Prius look like a Flintstone mobile, technology-wise.
  • tdohtdoh Posts: 298
    Gee, I wonder what was "wrong" with that '03 Prius that the owner felt he needed to trade up to an '05 model; yes, the owner did mention that the '05 had more amenities than the '03...but if one buys a hybrid to save on fuel costs--among other savings--trading up after just two years clearly says something about the "satisfaction" of driving an "older" Prius...
  • falcononefalconone Posts: 1,726
    Probably the same reason someone goes from a 2000 C Class MB to a 2002 MB. Not everyone things out there purchases. Hybrids are no exception.
  • falcononefalconone Posts: 1,726
    In five years railroad james will get a great deal MORe money on trading his car than most people will. By then, the Prius will have even more content, more battery life. Heck... I'm already salivating!! Get my 06 in 12 weeks!! Can't wait!!
This discussion has been closed.