Opinions on Our Domestic Auto Industry

[Freakazoid]

Originally Posted by Raskolnikov

Overall, and we all know this, buying a new car is NOT a sound financial decision regardless of country of origin. Who in their right mind would finance something that drops 50% in value almost instantly? Hondas and Toyotas generally hold their value better by a 5-9% margin. But when you're losing half your initial investment anyway, is that 5-9% enough to base a purchasing decision on?

Oh and to answer one of the questions above: I would, and did, because cars appeal to my stupid idiotic foolish emotions. AAAAAARRRRGGGHHH!!

EH???? what car drops 50% of their value almost instantly? hell even the RL doesn't do that

[Sp00ner]

Sticker on an '05 RL was $24k... what's the trade in value? 14k?

[vandy0419]

Originally Posted by Sp00ner

Sticker on an '05 RL was $24k... what's the trade in value? 14k?

For my car the trade in is 15,300...but go private party and I can get $18k. Granted you dodge the taxes on a trade in, but you walk away with more if you sell it yourself. Hell, if you sell for less than blue book value you can always write it off at the end of the year as a loss.

[Freakazoid]

Originally Posted by Sp00ner

Sticker on an '05 RL was $24k... what's the trade in value? 14k?

That's assuming alot though... who actually paid 24k for their RL (24k would have had to been completely and totally loaded, no? the leftover sticker on the leftover 05 up here was only 22k)? with all the incentives that were running in 05, you shoulda known beforehand you're getting screwed if you buy a GM product with no GM discounts... (hence the increased domestic depreciation). For a 14k tradein you're also assuming 10-15k miles, and the car being a year old and them not accounting for the totally loaded value. Not what I'd consider 'instantly' . Plus the reason for that massive drop is because the car's unknown and has very little market.

You can't form an overlapping statement on an unknown car... The RL by far has to take one of the worst depreciation hits of any car, and it still doesn't hit that 50% :P

[Freakazoid]

Originally Posted by vandy0419

For my car the trade in is 15,300...but go private party and I can get $18k. Granted you dodge the taxes on a trade in, but you walk away with more if you sell it yourself. Hell, if you sell for less than blue book value you can always write it off at the end of the year as a loss.

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unless you have a totally loaded 05 with super low miles, there's no way in HELL you'd get 18k.... and even then....(unless you got one of those saps out there)

I said this before, I'll say it again. The bluebook is not even REMOTELY accurate for pricing of the RL.

[BigBrother]

While we're repeating ourselves - the "Blue Book" (Kelly) isn't a remotely accurate way to price ANY car. If you want a realistic value from Kelly, you go to "privte party" value and list condition as "fair". The "good" and "excellent" sections serve no purpose - no bank on earth would loan that percentageon any car to anone with a sub-800 credit score without the difference as down payment.

AQ realistic value is the NADA "high book" (not "retail", "high".) with accurate mileage adjustments (listed in teh front of thebook) minus reconditioning costs. That is what a bank or credit union will loan on most vehicles, plus tax and licsensing, with no money down, to someone with average credit. That is what they will loan, because that is the most accurate reflection of a cars ACTUAL VALUE. All other "pricing tools" are there to allow dealers and flippers to have bargaining room and make you think you're getting a deal. THEY ARE NOT REAL NUMBERS.

[Freakazoid]

Originally Posted by BigBrother

While we're repeating ourselves - the "Blue Book" (Kelly) isn't a remotely accurate way to price ANY car. If you want a realistic value from Kelly, you go to "privte party" value and list condition as "fair". The "good" and "excellent" sections serve no purpose - no bank on earth would loan that percentageon any car to anone with a sub-800 credit score without the difference as down payment.

AQ realistic value is the NADA "high book" (not "retail", "high".) with accurate mileage adjustments (listed in teh front of thebook) minus reconditioning costs. That is what a bank or credit union will loan on most vehicles, plus tax and licsensing, with no money down, to someone with average credit. That is what they will loan, because that is the most accurate reflection of a cars ACTUAL VALUE. All other "pricing tools" are there to allow dealers and flippers to have bargaining room and make you think you're getting a deal. THEY ARE NOT REAL NUMBERS.

agreed, there are a few cars that it's actually pretty right on the nose for, but the blackbook pricing is completely different than the bluebook
bluebook is ESPECIALLY off for domestic cars because it doesn't taken into consideration rebates and the such

[Raskolnikov]

Allright, I was exagerrating with the 50% depreciation. But does 30-40% depreciation make buying a new car a great investment? The answer is no.

The overall point is that those who say they buy imports because of resale value are missing the mark. If you're looking to recoup your investment on an automobile, you'd better be looking at old Chevelles, old Mopars, old Corvettes.....and NOT at new cars.

PS---See sig for classic Chevy for sale!!!