Trade in value dropping FAST
02-20-2005, 07:51 AM
#26
Momentum Keeps Me Going
Kind of interesting seeing peoples reaction to the "facts of car ownership". Cars are expensive. Period. It's the rare specimen that appreciates or even stays on par value. Dealers are just the bearers of this news to the uninitiated, and sometimes it is a rude awakening, but what to do?
Edmunds "True cost to own" is a good place to look and check out different cars and what happens. It's not cast in stone, but you'll quickly get the drift - you lose or you lose even more LOL
RX-8 --> http://www.edmunds.com/new/2005/mazd....cto.1.1.Mazda*
is actually pretty decent. Here's a fun one
Hows about 26K in the first year - granted it's a fun 26K, but still: http://www.edmunds.com/new/2005/pors...to.1.1.Porsche*
or
pick your own and cry a little
Edmunds "True cost to own" is a good place to look and check out different cars and what happens. It's not cast in stone, but you'll quickly get the drift - you lose or you lose even more LOL
RX-8 --> http://www.edmunds.com/new/2005/mazd....cto.1.1.Mazda*
is actually pretty decent. Here's a fun one
Hows about 26K in the first year - granted it's a fun 26K, but still: http://www.edmunds.com/new/2005/pors...to.1.1.Porsche* or
pick your own and cry a little
02-20-2005, 08:57 AM
#27
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I was actually all set to make a deal on a '05 Z, but I got smacked in the face when it was time to talk trade in for my 8. Someone did mention it earlier, but the reason given was the abundance of brand new '04s still on the lots. Not that the trade in value will go back up, but once the '04s are gone, the depreciation will slow greatly. I guess I'll keep my 8 for awhile longer. I wish I could afford both.
02-20-2005, 12:50 PM
#29
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Originally Posted by 8's enough
trade i value for my 8 gt package with 13000miles is worth 27-28k by kelly blue book
Huh? Can I see that? How in the world is your car booking at 27-28k on trade in. That is definitely not true. I am going to assume you meant private party value is worth 27-28k. Trade in should be around 23-24k.
02-20-2005, 12:58 PM
#30
Remember to always use "good" kbb rating if your trading in. Dealers will rarely EVER give an excellent rating. Your car could be zaino'd to hell, have not a single scratch/dent, no internal wear, brand new tires, and you'll still get the good rating.
If the vehicles more then a few years old...they might pull out the black book (auction value), in which case your resale is thrown straight out the window.
Don't feel bad though, look at the Volvo V70R owners. They were told "no rebates, only 1 per dealer, yadda yadda"...they lost over 15,000 in value the first year =/.
If the vehicles more then a few years old...they might pull out the black book (auction value), in which case your resale is thrown straight out the window.
Don't feel bad though, look at the Volvo V70R owners. They were told "no rebates, only 1 per dealer, yadda yadda"...they lost over 15,000 in value the first year =/.
02-20-2005, 03:11 PM
#31
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Welll that's not exactly true, KBB for my WRX in excellent is 17,100 and I was offered 17,800 for it from Subaru for guaranteed trade in value. I realize that's higher than other dealers would offer me, but it's still a trade for a new car.
02-20-2005, 08:48 PM
#32
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It's kinda hard to keep values on a 32k car that sells for as low as 22k. If you were one of the first to own these cars I'm sure most paid over the 30k mark, and now find that the cars are selling so much less that it just took a big chunk out of the tradein value. However the trade in value and the actual value are 2 different things.
I looked up my car (6sp MT, touring, appearance, spoiler) on Nada and KBB and both say the car is worth 29 and change with 2500 miles on it (original MSRP just under 32K). Both also say that tradein is around 22k ( which sucks), but we all should know that trading a car in after one year means your gonna take a blood bath.
Mazda must know what the real value of this car is/will be ( or close to it) because that's how they figure what lease's cost. I leased my 8 for 248xx with 1500 down, financed 22 and change thru mazda. After 30 months ( 30,000 miles), I have the option to purchase for 19000. That's 19000 for a 2.5 year old car with 30K miles on it. Mazda has to know what these cars will be valued at or they would be losing tons when people walk away from this car because it cost more to buy then what it's worth.
I looked up my car (6sp MT, touring, appearance, spoiler) on Nada and KBB and both say the car is worth 29 and change with 2500 miles on it (original MSRP just under 32K). Both also say that tradein is around 22k ( which sucks), but we all should know that trading a car in after one year means your gonna take a blood bath.
Mazda must know what the real value of this car is/will be ( or close to it) because that's how they figure what lease's cost. I leased my 8 for 248xx with 1500 down, financed 22 and change thru mazda. After 30 months ( 30,000 miles), I have the option to purchase for 19000. That's 19000 for a 2.5 year old car with 30K miles on it. Mazda has to know what these cars will be valued at or they would be losing tons when people walk away from this car because it cost more to buy then what it's worth.
02-21-2005, 01:04 AM
#33
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If you look at KBB, the trade iin value is unfortunately very accurate. If you look at private party or retail value, it's way off. No one is gonna buy a used RX8 for 29k, when they can get an exact new model for less then that. That is the unfortunate side of all of this. However, it's currently a temporary thing as far as resale value goes. For trade in, this car is horrific, and may likely never recover. For resale market value, it's horrific in terms of if you actually tried selling your car, but since the numbers are still high in book value, we have a possiblity of seeing it get closer to the real world demand. It's basically a toss up, and we have no way of knowing how this will turn out. As I said in another thread, we are playing with REAL TIME market value, and whatever it says we have to live with. We all have to take responsibility of the risk in buying this unproven unique car, and realize that no matter what a magazing or KBB says, anything can happen. Currently, this is an embarassment to see such a wonderful machine being sold for 4-5k below invoice, but that's Mazda's fault. They miscalculated, and I'm sure they are doing their best to correct it.
02-21-2005, 09:33 AM
#34
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Originally Posted by rodrigo67
It's kinda hard to keep values on a 32k car that sells for as low as 22k. If you were one of the first to own these cars I'm sure most paid over the 30k mark, and now find that the cars are selling so much less that it just took a big chunk out of the tradein value. However the trade in value and the actual value are 2 different things.
I looked up my car (6sp MT, touring, appearance, spoiler) on Nada and KBB and both say the car is worth 29 and change with 2500 miles on it (original MSRP just under 32K). Both also say that tradein is around 22k ( which sucks), but we all should know that trading a car in after one year means your gonna take a blood bath.
Mazda must know what the real value of this car is/will be ( or close to it) because that's how they figure what lease's cost. I leased my 8 for 248xx with 1500 down, financed 22 and change thru mazda. After 30 months ( 30,000 miles), I have the option to purchase for 19000. That's 19000 for a 2.5 year old car with 30K miles on it. Mazda has to know what these cars will be valued at or they would be losing tons when people walk away from this car because it cost more to buy then what it's worth.
I looked up my car (6sp MT, touring, appearance, spoiler) on Nada and KBB and both say the car is worth 29 and change with 2500 miles on it (original MSRP just under 32K). Both also say that tradein is around 22k ( which sucks), but we all should know that trading a car in after one year means your gonna take a blood bath.
Mazda must know what the real value of this car is/will be ( or close to it) because that's how they figure what lease's cost. I leased my 8 for 248xx with 1500 down, financed 22 and change thru mazda. After 30 months ( 30,000 miles), I have the option to purchase for 19000. That's 19000 for a 2.5 year old car with 30K miles on it. Mazda has to know what these cars will be valued at or they would be losing tons when people walk away from this car because it cost more to buy then what it's worth.
I do find it funny that they list the car as a 2-door coupe...I guess they would have to make a whole new catagory for it being that it is actually a 4-door coupe.
Last edited by aggietiff28; 02-21-2005 at 09:36 AM.
02-21-2005, 10:05 AM
#36
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Originally Posted by irish8
I couldn't agree more. kbb is NOT a good source for valuing cars. My way of assertaining trade-in value is to look up the car on say autotrader.com or carmax.com. Match the specs. Take the median cost and minus 10%-15%. I have had success with this thought process many times. The reality is, cars these days are not an investment! I love my 8, but she is falling victim like all others!!
- Irish
P.S. Dealers mostly use NADA to value cars.
- Irish
P.S. Dealers mostly use NADA to value cars.
02-21-2005, 10:18 AM
#37
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Hehe...I just think they don't really have a clue what it should be worth with the way they are selling. Some places they sell really well...others, not so much. KBB for me is almost 6k less than NADA value. That is a HUGE discrepancy which just furthers my opinion. I figure if I ever decide to trade it in (fat chance), I will go from dealer to dealer and let them give me the trade-in amount. Whoever bids highest wins. :D
02-21-2005, 11:59 AM
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1st year of ownership ( actually soon as you drive off the lot) takes the biggest depreciation. After that it slows down. You can see the true resale holding power after about the 3rd year.
Also, if you put 5-6K into modifications, then on the street someone who appreciates all the extras will also pay extra for the car. Forget trade in, that is always your last resort.
Also, if you put 5-6K into modifications, then on the street someone who appreciates all the extras will also pay extra for the car. Forget trade in, that is always your last resort.
02-21-2005, 12:23 PM
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Originally Posted by aggietiff28
Not sure where you got the 22k trade-in from, but I just looked it up on NADA and my car has 23k miles on it. Price for me showed 25k and some change...Pretty good since I only owe 22k and only paid 27k. I can't get the link to work...or I would attach it.
I do find it funny that they list the car as a 2-door coupe...I guess they would have to make a whole new catagory for it being that it is actually a 4-door coupe.
I do find it funny that they list the car as a 2-door coupe...I guess they would have to make a whole new catagory for it being that it is actually a 4-door coupe.
Your right, last tme I looked it up it didn't even give a choice between gt, touring or base. Mine now shows trade in at 25k, which is kinda hard to believe because I got it new for 24K.
Kelly's listing at 21K for the same car and options
Big difference, but fortunately my insurance comp. uses NADA.
links don't work...
Last edited by rodrigo67; 02-21-2005 at 12:26 PM.
02-21-2005, 02:03 PM
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02-21-2005, 02:32 PM
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As for the statement about the Lightning Yellow. Given the very small amount of yellow out there, it should do well in the market 2 years from now. I plan on keeping my 8 for at least 10 years.
02-22-2005, 10:22 AM
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Spin9K MSRP's do get over 33k mine was over 34 with nav/rotary accent/moonroof deflector,splash guards etc with no dealer mark up-you know at seacoast mazda. With almost three months into 05, gettin rid of any 04 isn't much of a good idea, and yes I also read that over 5 years they hold over 40% that is damn good.
02-23-2005, 12:59 PM
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I've found what crossbow said to be generally true, a good indication of what you will get in trade no matter the condition of your car is KBB "fair-good condition"
02-26-2005, 04:58 PM
#46
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I'm trying to get rid of the 8 here in New Jersey. This guy at the dealership just told me that my GT 6 speed manual with 22,000 miles is only worth 19,000.??? The buyout on my lease is way more than that. I'm trying to get an 03 Lincoln Navi and another car for my girlfriend, from this same dealership. I figured I would be able to roll in the upside money, but not at this price. 19000 is out of control. It was 33,000 1 year ago. WTF? 14,000 depreciation in 1 year. You have got to be kidding me. Looks like I'm stuck with the 8. I love the rotary, but we've been getting so much bad weather that the car is just getting on my nerves. Oh well. I know, I knew all this when I bought the car.
02-26-2005, 05:27 PM
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Originally Posted by Irish_in_a_RX8
I agree with the others earlier about KBB. Most dealers go by a 'red' book...perhaps a dealer can verify this on the forum?
02-26-2005, 06:26 PM
#48
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Originally Posted by Elara
Yes, they do. KBB has NOTHING to do with what you're going to get. Trade-in values depend largely on the wholesale market and other "insider" valuation methods(yes, I work for a "dealer" of sorts), and KBB rarely, if ever, reflects fair trade-in value OR fair market prices for anything. We actually use KBB valuations in our advertising because in general we sell for a lot less than KBB. Which does not reflect how much we pay FOR the car in the first place.
What Elara is basically saying is go below what KBB says on your RX8. In other words, if you want to trade in your rx8, or actually thought it would retain it's value, you are sadly mistaken. This is very unfortunate.
02-26-2005, 07:43 PM
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It may be difficult but try selling it privately rather than to a dealer. A dealer wants to make about 3 K or more depending on the car. Yes, trades for any car is a nightmare game.