Toyota resale value

Reply
 
LinkBack Thread Tools Display Modes
Old 05 Dec 2009, 09:14 pm   #1 (permalink)
Mark
Guest
  • Posts: n/a
  • User Status:


Default Toyota resale value

Saw in the paper today that a 2010 Toyota is tops in the expected resale
value after 5 years. Toyotas on average are expected to retain 38.8% of
their purchase price. GM only around 31% and Chrysler around 29%. None of
the numbers are all that great - my $30,000 RAV4 will only be worth $11,600
in 5 years, but that is still $2,300 better than a $30,000 GM that would
only be worth $9,300.


  Reply With Quote
Old 06 Dec 2009, 12:08 pm   #2 (permalink)
john
Guest
  • Posts: n/a
  • User Status:


Default Re: Toyota resale value

Great news! So who wants one?


On Dec 5, 7:14*pm, "Mark" <m...@nospam.com> wrote:
> Saw in the paper today that a 2010 Toyota is tops in the expected resale
> value after 5 years. Toyotas on average are expected to retain 38.8% of
> their purchase price. GM only around 31% and Chrysler around 29%. *Noneof
> the numbers are all that great - my $30,000 RAV4 will only be worth $11,600
> in 5 years, but that is still $2,300 better than a $30,000 GM that would
> only be worth $9,300.


  Reply With Quote
Old 06 Dec 2009, 03:09 pm   #3 (permalink)
C. E. White
Guest
  • Posts: n/a
  • User Status:


Default Re: Toyota resale value


"Mark" <mwl@nospam.com> wrote in message
news:ekFSm.58942$de6.42250@newsfe21.iad...
> Saw in the paper today that a 2010 Toyota is tops in the expected resale
> value after 5 years. Toyotas on average are expected to retain 38.8% of
> their purchase price. GM only around 31% and Chrysler around 29%. None of
> the numbers are all that great - my $30,000 RAV4 will only be worth
> $11,600 in 5 years, but that is still $2,300 better than a $30,000 GM that
> would only be worth $9,300.


You need to remember one thing, the retain value percentage is based on the
original MSRP, not the actual selling price. So while you might have paid
close to MSRP for the RAV4, it is likely that a GM product with an MSRP of
$30,000 probably sold for a lot less. Go back and figure that into your
comparison and I think the GM stuff won't look as bad. I suspect that you
would have saved more on the front end than you will lose on the back end,
but it is hard to know for sure.

Personally, I just ignore the expected resale value crap. They have missed
the mark so often in the past, I can't imagine they will suddenly get it
right. Another couple of year like the last three and Toyota's reputation
will be worse than GM's (and I am not saying either of them deserves a bad
reputation - I am just saying people's opinions can shift based on a string
of unfortunate events).

I usually just by whatever vehicle best suits my fancy and let the future
take care of itself. The best resale values I ever had were for Fords - I
bought a 1996 Explorer in December of 1995 and sold in January of 1997
(decided I wanted an Expedition instead). I bought it for $27k and sold it
for $25k with 33,000 miles on the odometer. It was in perfect condition and
was loaded. I bought a barely used (and about to be repossessed) 2004
Thunderbird in December of 2004 for $26k, drove it for 2 years and 31,000
miles and sold it for $23k (to a dealer no less). Of course the best ever
was a 1978 Fiesta. I bought it used for $500 in 1984, drove it for 3 years
and 60k miles and sold it for $600.

Ed

  Reply With Quote
Old 06 Dec 2009, 04:43 pm   #4 (permalink)
hls
Guest
  • Posts: n/a
  • User Status:


Default Re: Toyota resale value


"Mark" <mwl@nospam.com> wrote in message
news:ekFSm.58942$de6.42250@newsfe21.iad...
> Saw in the paper today that a 2010 Toyota is tops in the expected resale
> value after 5 years. Toyotas on average are expected to retain 38.8% of
> their purchase price. GM only around 31% and Chrysler around 29%. None of
> the numbers are all that great - my $30,000 RAV4 will only be worth
> $11,600 in 5 years, but that is still $2,300 better than a $30,000 GM that
> would only be worth $9,300.
>


I think that Toyota has enjoyed very good price stability, especially in
certain models,
when compared with some other cars.
Try to buy one from an individual or even a used car lot. They can be very
proud
of them.

  Reply With Quote
Old 09 Dec 2009, 06:09 am   #5 (permalink)
FatterDumber& Happier Moe
Guest
  • Posts: n/a
  • User Status:


Default Re: Toyota resale value

Mark wrote:
> Saw in the paper today that a 2010 Toyota is tops in the expected resale
> value after 5 years. Toyotas on average are expected to retain 38.8% of
> their purchase price. GM only around 31% and Chrysler around 29%. None
> of the numbers are all that great - my $30,000 RAV4 will only be worth
> $11,600 in 5 years, but that is still $2,300 better than a $30,000 GM
> that would only be worth $9,300.
>
>


You pay by the mile and the time on new vehicles. The costs per mile
may vary but it will cost X amount of dollars to get down the road a
mile. Initial cost, trade in or sale of the vehicle, taxes, insurance,
fuel, repairs, maintenance it all adds up.
Any idea of what the actual cost is to actually go a mile?
On a decent used car or pickup for me, I come up with 1,000 bucks a
year and 25 cents a mile, more or less......probably more.

  Reply With Quote
Old 17 Dec 2009, 11:37 am   #6 (permalink)
hls
Guest
  • Posts: n/a
  • User Status:


Default Re: Toyota resale value


"FatterDumber& Happier Moe" <"WheresMyCheck"@UncleSamLoves.Mee> wrote in
message news:4b1f9378$0$5356$bbae4d71@news.suddenlink.net. ..
> Mark wrote:
>> Saw in the paper today that a 2010 Toyota is tops in the expected resale
>> value after 5 years. Toyotas on average are expected to retain 38.8% of
>> their purchase price. GM only around 31% and Chrysler around 29%. None
>> of the numbers are all that great - my $30,000 RAV4 will only be worth
>> $11,600 in 5 years, but that is still $2,300 better than a $30,000 GM
>> that would only be worth $9,300.
>>
>>

>
> You pay by the mile and the time on new vehicles. The costs per mile may
> vary but it will cost X amount of dollars to get down the road a mile.
> Initial cost, trade in or sale of the vehicle, taxes, insurance, fuel,
> repairs, maintenance it all adds up.
> Any idea of what the actual cost is to actually go a mile?
> On a decent used car or pickup for me, I come up with 1,000 bucks a year
> and 25 cents a mile, more or less......probably more.


It isnt linear. Driving that new car off the lot puts a lump in your
linear
simulation.

Some cars depreciate more quickly than others. Ever buy a Fiat?

  Reply With Quote
Old 19 Dec 2009, 11:08 am   #7 (permalink)
SMS
Guest
  • Posts: n/a
  • User Status:


Default Re: Toyota resale value

Mark wrote:
> Saw in the paper today that a 2010 Toyota is tops in the expected resale
> value after 5 years. Toyotas on average are expected to retain 38.8% of
> their purchase price. GM only around 31% and Chrysler around 29%. None
> of the numbers are all that great - my $30,000 RAV4 will only be worth
> $11,600 in 5 years, but that is still $2,300 better than a $30,000 GM
> that would only be worth $9,300.


What's counter-intuitive about Toyotas is that driving a new car Toyota
off the lot doesn't immediately cause a drop in value. At least in
California, it's very easy for the astute new Toyota buyer to pay well
under invoice price, yet recent vintage used Toyotas (1-2 years old)
will sell on the used market for greater than, or equal to, the price of
a new one. It's because the used car buyers tend to be less educated in
the art of car buying, and will pay ridiculously high prices for used
Toyotas and Hondas, thinking that for a new one they have to pay over
invoice.

I remember buying a Camry LE (model 2532) for a tad under $17,000, when
the MSRP was around $21,000, and the invoice was around $18500. Of
course the dealer cost was well under the $17,000 we paid, since the
invoice does not equal the dealer cost due to various incentives,
holdbacks, etc. Funny thing was, I didn't even have to bargain for that
price, it was an "all in stock at this price" sale. Yet a one year old
Camry 2532 was at least $1000 more from private parties, and even more
from dealers. Of course the dealer hopes that the new car buyer will add
stuff like a warranty, glass etching, paint protectant, fabric guard,
digital ashtrays, and of course financing.
  Reply With Quote
Old 19 Dec 2009, 11:20 am   #8 (permalink)
SMS
Guest
  • Posts: n/a
  • User Status:


Default Re: Toyota resale value

C. E. White wrote:

> You need to remember one thing, the retain value percentage is based on
> the original MSRP, not the actual selling price. So while you might have
> paid close to MSRP for the RAV4, it is likely that a GM product with an
> MSRP of $30,000 probably sold for a lot less.


Oh please, who _ever_ paid anywhere near MSRP for new Toyota, other than
perhaps when the Prius was at the height of its popularity? It would be
an extremely naive buyer, that never reads a newspaper or checks
on-line, that would pay anything close to MSRP for a Toyota. That's not
to say that those buyers don't exist!

It's not only rare to pay near MSRP, it's rare (at least in California)
to pay over invoice, and that's not just for the super astute
negotiator. Of course the dealer cost is not the same as invoice, and
Toyota likes to keep volumes up with factory to dealer incentives that
allow the dealers to sell at those prices and still make a profit.

I've purchased three new Toyotas in my life, a Land Cruiser, Camry, and
4Runner, and I paid well under invoice for every one. Those dealers are
still in business. In each case there was no negotiating. These were
advertised specials. The dealers were getting hefty incentives from
Toyota that enabled them to offer these prices and still make money.
Perhaps I could have negotiated the prices even lower, but when I tried
they were not budging, and I wasn't going to spend days on the car
buying process.
  Reply With Quote

Reply

Thread Tools
Display Modes

Posting Rules
You may not post new threads
You may not post replies
You may not post attachments
You may not edit your posts

BB code is On
Smilies are On
[IMG] code is On
HTML code is Off
Trackbacks are On
Pingbacks are On
Refbacks are On



All times are GMT -5. The time now is 06:07 pm.

Attribution:
Autoblog
Powered by Yahoo Answers



ToyotaLexusForum.com is an unofficial community for car enthusiasts. ToyotaLexusForum.com is not affiliated with Toyota Motor Corporation in any way.
Toyota Motor Corporation does not sponsor, support, or endorse ToyotaLexusForum.com in any way.
Copyright/trademark/sales mark infringements are not intended or implied.