Real-World Trade-In Values

steine13

"Everybody knows that buying used will save you money."

That's one group of people who buy these cars used.

And then there are the payment buyers who don't mind setting up payments that last until the car is 10 years old.

Funny, nobody "in their right mind" will set up a 120-month term from new.
Given a choice, I'd rather do THAT than buy a 5 year old Tacoma and then go 60 months.

Nobody bats an eye when used cars are financed until whenever.

qbrozen

I am guilty of financing used cars that way. Funny thing is, very often, I am rightside up sooner in such cases than if I bought new. For example, buy 3-4 year old car on a 4-5 year note and be rightside up in 2.5-3 yrs vs finance new for 6 years and take 4-4.5 to be positive equity. Sure, the used car is effectively 6 yrs old vs the new car at 4 yrs old, but to a chronic payment buyer, that's not largely relevant. 

Of course, I have had many exceptions, too, such as the new Mustang that was breakeven at 18 mos into a 66-mo loan.

stickguy

breakeven is easy. If you put down enough money at the beginning.

nyccarguy

It seems recently that cars are holding their values very well.  Let's take a new car with a poor residual like a Jeep Grand Cherokee.  You pay $40K plus tax for a 2016 that stickers for $47K.  They discount the day lights out of these.  Chrysler's stated residual for a 36 month lease hovers around the 50% mark.  You finance for $709 per month including tax for 60 months.  After 2 1/2 years, you think that jeep will be worth less than 20K?

Then take a 3 year old, off lease, GC.  You pay $26K plus tax.  You take out a 5 year loan at $460 per month.  I guess you are correct @qbrozen.  You should break even on the used car loan around the 2 year mark because depreciation slows after the car is 3 years old.

so after 2 1/2 years, you still owe $20K on the new Jeep.  After 2 years, you only owe $15K on the used Jeep.

qbrozen

stickguy said:

breakeven is easy. If you put down enough money at the beginning.

I put nothing down on the Mustang. Even rolled an extended warranty into the loan.

Oh, and the Honda Fit. That wasn't TOO bad. I put down $3k, got a 66-mo note, drove it for 14 mos, and got a check for $650 when I sold it to Carsense.

We also broke even on our 2003 Pilot we bought new. Very little discount, as they were just introduced. We had that for 24 mos and I believe we even rolled a couple grand negative equity into it on a 72-mo loan. But we know Hondas are largely silly resale.

I usually don't put much down on cars because the loan rates are so low.

nyccarguy

@qbrozen - at almost 5 years old, I'm amazed at how well my wife's Pilot has held its value.  Interest rates are so low, I don't put anything down either.  

steine13

>> at almost 5 years old, I'm amazed at how well my wife's Pilot has held its value

"Past performance is no guarantee of future results."

That old axiom will probably prove true here.
Five years ago, not a lot of new cars were bought, so used cars from that era are relatively scarce.

At the moment, car sales are booming, so I'd expect a softer market 5 years from now.
REALLY soft for 16 mpg SUVs if gas is $5 by then

fushigi

Yeah, I've not really understood the mindset of buying something that isn't economical just because gas is currently (relatively) inexpensive. Anyone who's been fueling vehicles over the past few years should understand that gas prices rise & fall all the time and generally they will stay higher for longer periods. Any periods of low pricing should be viewed as temporary.

One of my goals is to have my next vehicle always have better rated economy than the one it replaces.

andres3

henryn said:

nyccarguy said:

If you are impressed by that, check out Tacoma residuals

Which begs the question, "Why would anyone in their right mind buy the recent model used one over the new one?"

There is only one reason, and that is A costs less than B. Lower cost buyer. One who puts lowest cost ahead of value.

roadburner

fushigi said:

One of my goals is to have my next vehicle always have better rated economy than the one it replaces.

Substitute "horsepower" for "economy" and I'm right there with you...

iluvmysephia1

fushigi, sounds like you're concerned about going green. Mitsubishi's CEO says his Company feels the same. Hence, EVO being punted away. Huh? The EVO being punted?

And hybrid SUV's are now really being pushed. The compact Lancer is hanging by a thread...somewhere.

roadburner

I don't see Mitsubishi sticking around much longer. When our local family owned dealer group was bought by a multi-state group the first thing the new owners did was shutter the Fiat and Mitsubishi dealers. What does that tell you.

stever

There's a Mitsu dealer here on our auto row. I thought it was a used car lot until I looked more closely one day. They show a few Outlanders but seem heavy on Mirages and Lancers. Same dealer has a lot of other brands.

iluvmysephia1

Yeah, stever-yep, is it Sisbarro? Cause I hit a coyote round about 2 years ago just west of that Border Patrol station on Highway 70 that heads towards Alamo. By the time I saw him, I couldn't steer the '08 Lancer GTS away from him. Bonk...then his body got bunched underneath my FE and we did a bit of a bounce up and back down. Critter seemed dazed and confused standing in the middle of the highway. Not normal for coyotes. Anyhow, I took it to Sisbarro Mitsubishi and a young service advisor/mechanic combo guy listened and walked out to our rig. The coyote collision had dented the left front valance in. About a one foot X 4" chunk of valance was dented in. I wanted my baby EVO fixed, but I was wary of deductibles.

He crawls under the FE, takes a look for about 5 seconds and just pops it back out with his hands! Bonk! No little residual scratches, it looked back to normal. 

"How much do I owe ya?"
"Nothin'." Really? For some reason that goodness never translated in to wanting to deal for a new Mitsubishi from Sisbarro. Nor from Jack Key Kia, for that matter.

The new Mirage - I sat in a 2014 when the Mrs. and I needed a different rig at Viva Kia/Mitsubishi on July 1, 2014, in El Paso. Too small! 2014 Kia Rio sedan - too small! 2014 Kia Soul? Daddy Bear sat inside and it felt just right!

stever

Yep, Sisbarro. Nice of 'em to fix your body work like that.

iluvmysephia1

No doubt! Couldn't quite believe it. I took the Lancer there for scheduled maintenance and everything went well through them.

stever

I got a bit leery of them because of their $1,495 "Desert Protection Package" at their Buick shop.

Of course the Kia dealer has the same junk fee too.

nodave3d

qbrozen said:

nodave3d said:

New to this site and would appreciate an approximation of the trade in value on a
2013 Jeep Patriot Sport model 83,000 miles
Color: True Blue
Engine: 2.0 4l
Trans: 5 spd manual
Stock rims
Tires: Needs tires (3) still originals (1) was replaced due to taking a turn to fast and running off road had driver side suspension parts replaced also but no body damage
Brakes: will need soon
Exterior Body has minor scratches
Interior has Minor scuffs nothing major
A/C, power windows and mirror all work

Other than oil changes,tire rotation and suspension repairs no other maintenance has been done
Looking to trade to a Jeep dealer for the same updated model but still owe 10,000 on it that hurts the most
Thanks, Any advice is much appreciated

about $6k-$6500.

Tough to drive a car 83k miles and still be $4k in the hole on it. You sure you want another one?

fushigi

roadburner said:

I don't see Mitsubishi sticking around much longer. When our local family owned dealer group was bought by a multi-state group the first thing the new owners did was shutter the Fiat and Mitsubishi dealers. What does that tell you.

YTD sales are up 6% (13% for March) so your local dealer issue doesn't tell much of the story.

Mazda, OTOH, is down 17% YTD (27% for March).

nodave3d

Still debating on another vehicle its just the dealership in my area is offering incentives that I was told would cover what I owe along with my trade in. Also I plan to put down 2 or 3 grand. I would prefer a better model but my 75 mile commute five days a week plus weekend travels is racking up the miles but I do like the room the Patriot has the ride and mainly the gas mileage I get. so I came here hoping for some advice on some options

roadburner

fushigi said:

YTD sales are up 6% (13% for March) so your local dealer issue doesn't tell much of the story.

Mazda, OTOH, is down 17% YTD (27% for March).

Honestly, the only Mitsus I've ever seriously considered buying were the original Montero and the EVO. Now that they just make CUVs and economy cars they aren't even remotely on my radar screen...

Mr_Shiftright

EVO was awesome in its day. A giant-killer!

Mitsus weren't bad cars at all. They deserved a better fate.

Sandman6472

Almost bought a Outlander Sport but the GM was a total jerk and let me walk because I wanted to take delivery the next day. They even walked me next door to the Hyundai store where they had no problem when I picked the vehicle up. For a struggling company to pull such nonsense is beyond me as I had my c c out ready to put a $5K deposit down right then. Dumb [non-permissible content removed] dealer!!

The Sandman

fushigi

CUVs are my radar at the moment. I like the entry/exit height they offer as well as the expanded cargo capacity without minivan dimensions (which aren't so "mini" any more). And this winter aside, AWD for midwestern weather is a bonus.

The new Outlander continues to improve over prior models and if the PHEV version, which is slated for US release late 2016, is worthwhile it may my next ride. If it fails to sway me, though, an Infiniti QX60 will be in my garage (most likely). Or I'll just sit tight awhile longer; my current Outlander has no problems and only 52K miles.

And it totally sucks when a dealer ruins a brand for you. A friend walked away from Toyota when the salesman could do nothing but gripe about his low commission on the Corolla. And he walked away from Honda because the dealer couldn't bother to get a salesman to us. He wound up with a Sentra which he's kept for over 200K miles and incented his wife to lease an Altima. Toyota & Honda dealerships were responsible for 2 Nissan sales.

iluvmysephia1

Mitsubishi is doing better here - they'll be OK. The Mirage and Outlander are doing fairly well. They cut corners here and there in production, not really very smart. And they didn't treat us right with our Lancer GTS disaster, either.

carperso

2015 Honda crv ex-l white 10k miles. navigation. private party sale. new england area.

henryn

^^^ probably more than what the new ones are selling for over in Prices Paid. Used CR-V prices are insane.

But then again, not nearly as insane as Tacoma's or Jeep Wrangler's.

henryn

carfax.com/VehicleHistory/p/Report.cfx?make=FORD&vin=116%7C16%7C-94%7C-8%7C-62%7C-37%7C12%7C24%7C51%7C39%7C66%7C-7%7C53%7C87%7C43%7C-119%7C51%7C-52%7C106%7C-89%7C3%7C117%7C-70%7C65%7C&dealer_id=66668&car_id=423967292&partner=ATD_W




autotrader.com/cars-for-sale/vehicledetails.xhtml?zip=77021&endYear=2008&modelCode1=F150PICKUP&showcaseOwnerId=54376346&makeCode1=FORD&startYear=2000&listingType=used&firstRecord=50&listingTypes=used&searchRadius=50&showcaseListingId=425406214&mmt=%5BFORD%5BF150PICKUP%5B%5D%5D%5B%5D%5D&listingId=423967292&Log=0

We have had conversations before about CarFax, and how reliable or unreliable their reports just might be. I think this particular one takes the cake, though.

Notice that the dealer ad on Autotrader touts “ONE OWNER!”, and the Carfax report states “CARFAX 1-Owner vehicle”.

But … if you actually read the Carfax report, the truck was “sold at auction” on 9/12/2006 with 24,249 miles. And then on 11/22/2006, we see “Vehicle repossessed”.

Somehow I just don’t see this as being a “ONE OWNER” vehicle.

qbrozen

carperso said:

2015 Honda crv ex-l white 10k miles. navigation. private party sale. new england area.

assuming AWD, its about $24k trade, $25k auction, $27k private party.

iluvmysephia1

2011 Kia Soul base with 61,585 miles on it. 5-speed transmission, all maintenance done, newer Cooper tires. 2.0L I-4 engine, interior and exterior is in good shape. Minor paint scrape on the left rear corner, a few other very tiny ping dings on the body.

iluvmysephia1

2011 Kia Soul base with 61,585 miles on it. 5-speed transmission, all maintenance done, newer Cooper tires. 2.0L I-4 engine, interior and exterior is in good shape. Minor paint scrape on the left rear corner, a few other very tiny ping dings on the body.

nyccarguy

Interior/Exterior Color? City & State?

iluvmysephia1

Clear white exterior, black interior, Dodge City, KS.

Michaell

iluvmysephia1 said:

2011 Kia Soul base with 61,585 miles on it. 5-speed transmission, all maintenance done, newer Cooper tires. 2.0L I-4 engine, interior and exterior is in good shape. Minor paint scrape on the left rear corner, a few other very tiny ping dings on the body.

And it's white, correct? What color is the interior?

And, Dodge City, KS.

iluvmysephia1

Black interior and white exterior. The car's paint is very good - I take really good care of the car.

iluvmysephia1

iluvmysephia1's 2011 Kia Soul base 5-speed MT and clear white paint

qbrozen

ehhh... should be about $4k, give or take a nickel, depending how they feel about it. Many of these out there that have traded at auction anywhere from $3800-$5200.

stickguy

Ouch. That screams private sale.

suydam

Is it the MT that causes such steep depreciation? Even years ago I had a hard time selling one son's sharp Mazda 626 hatch with MT, while his brother's ancient LeSabre AT sold in a day.

iluvmysephia1

Wow. That means no deal. Oh well - I'm glad I asked in here before I drove out to Denver to make the deal. Yikes.

Mr_Shiftright

You should consider private sale if you still want another car. If you are hung up for wheels, you can even rent a car for a couple of weeks and still put considerable cash in your pocket with a private sale. If you clean up a car really well, write a good ad and take good photos, and price the car realistically, that Soul should sell in a week's time, easy.

iluvmysephia1

Thanks for the information, shifty! I will just keep the '11 Kia Soul and enjoy driving it.

Mr_Shiftright

Yeah, well, I'll tell you what I always tell myself---there is no global shortage of new or used cars. Sit tight and something else will come along that can "work" for you.

iluvmysephia1

Indeed, shifty. Good advice.

steine13

This is the time of year for that price range. People have income tax refund $$ in their pocket.
Saw an '05 Sienna on craigs yesterday; looked clean with some scratches, one owner, 120k, clean title, asking $5k.

Kinda stiff but not unrealistic I thought -- being in the rust belt and all.
Today it's gone. I have no doubt it sold THAT quickly.

Regarding the Kia: a stick is no problem on a private sale if you cast a wide enough net and price it well.
As a trade-in, it's pure poison.

Good luck -Mathias

andres3

How much does a red or bright yellow exterior paint job reduce trade in value over a dealership's favorite version of 10 different silver/grays from white to black. I really like the new TTS in Vegas Yellow. The paint entitles you to a get out of ticket free if you are driving towards Vegas.

gpapz125

Would like to find out trade in value:

2013 Hyundai Veloster. Base model. Black. Automatic. 16,000 miles. Great condition. 

Michaell

gpapz125 said:

Would like to find out trade in value:

2013 Hyundai Veloster. Base model. Black. Automatic. 16,000 miles. Great condition. 

City and state?

gpapz125

Michaell said:

Would like to find out trade in value:

2013 Hyundai Veloster. Base model. Black. Automatic. 16,000 miles. Great condition. 

City and state?

New York. Queens Village or Manhasset. 

Mr_Shiftright

andres3 said:

How much does a red or bright yellow exterior paint job reduce trade in value over a dealership's favorite version of 10 different silver/grays from white to black. I really like the new TTS in Vegas Yellow. The paint entitles you to a get out of ticket free if you are driving towards Vegas.

You might get away with a bright color on a car like that. I don't think it would re-sell for less per se, but it would take longer to sell.