Oz58

Even though I love having a new car, I must admit you make a good point. Used cars are definitely the way to go if you get the itch to switch cars frequently.

I'm not surprised that new car values drop after purchase, but for a Japanese model to drop so much is, to me, unusual.

I get a good deal on some new cars by working for a Ford subsidiary. But unless I
become fabulously wealthy, I think I've purchased my last new car.

Mach 1

Well, I dont think any car has a good reputation for holding resale value, japenese or not, with the possible exception of toyota and Honda in the current market. Maybe Mercedes also.

I have heard Toyotas build quality is dropping, so they might not hold thiers as much in the future.

If you want to buy new, buy a car thats holds it value more, like a Honda or Toyota Truck. If you want to buy a car used, buy a car that doesnt hold it value(so your not paying new car prices for a used car) like a Mazda or others....

Just my theory.....but Im poor, so I have to worry about these things. Most people probably dont think about it as much...

Oz58

I don't mean to be argumentative, but I have been buying cars for 20 years, and I haven't seen a Japanese model drop like this. But looking at other responses to my post, I think I agree that for the most part, the biggest reason for the drop is the availability of 0% financing.

Anyway, I guess I will be keeping the car for awhile longer. It's a nice car and the 0% interest isn't killing me. I probably will get a short shifter for it and get the windows tinted for summer. Also needs somewhat of a horsepower jolt.

Thanks for your input.

Mach 1

Why would 0% financing cause your cars value to drop faster than it would otherwise?

It is TYPICAL for a new car to lose 1/3 of its resale value after 2 years.

Its been this way for quite some time now. Maybe it wasnt that way 20 years ago, but it has been for at least the last 8 years or so that I have been paying attention to this stuff..... You even experienced it yourself already with your Neon....lol..I think your just in denial...

vgarcia

Fairbanks, in May '02, I just bargained with the guys and told them that I had been to a few other dealers, including the other Fairbanks in Ft. Lauderdale, which I had. I really shopped around and didn't want any dealer BS when I finally bought it. Got in and out of the dealer in less than 3 hours.

Actually you got about the same deal as me, since I didn't get automatic or the 6-disc changer. I got the sunroof though, and they gave me the alloy wheels free .

Also, my financing was 6.9%. Not the greatest, but this is my first financed car, and my first new car. Also, the car only had 35 miles on it.

Another thing: as bad as it sounds for our cars, take a look at the 2nd gen Eclipses (95-99). Those things dropped like an anvil!

wondergreen

I have to go back to what someone already posted, you can buy a used car with a sticker price of 4 grand less, but you might make up for most of that in interest rates. With 0% and new, your payment is a little more each month, but you have a brand new car. So, the incentives are there, but it just depends on whether you're talking about buying a used car that's two years old or four. Right now with 0%, if you're looking at an '01, you might as well buy new...just my opinion. But I also agree that I might have to go used next time (4 years old maybe), as long as I can get a good interest rate...

Mach 1

while lower interest rates can be an small incentive to go new over used, not everybody finances a car purchase.

wondergreen

Good point. I guess I can't assume that everyone is as broke-*** poor as I am. Come on powerball....

Mach 1

I just dont see the savings. If I finance a used car, its going to be thousands less than a new car, and even with the higher interest rate, would cost a lot less. And since I dont want to make payments on a new car, thats what I do, or I buy something that i can pay for up front with out borrowing money.

But you do have a point......however weak it might be.

kc5zom

Only a very small percentage when you are talking about new cars. Which is why lower interest rates are a HUGE incentive to purchase a new car versus a late model used one (where you will pay a much higher interest rate even without the incentives). Simple easy economics.

wondergreen

I qualified my statement by saying that if you're going to buy a used car that's less than 2 years old, with all of the incentives available right now, you might as well buy a new car. If you're looking to spend $7,000, then you either buy something that's 4-5 years old, or you buy a new Kia. But if you want to spend $13k on a used car, then you might want to consider spending $16k with no interest on a brand new car.

Mach 1

Agreed, although I spent $7000 on a 2 year old car. It pays to shop around.

Emerald99ES

I have to agree with Mach1's statement completely.. in my car-buying experience I have come up with a simple plan: If you want to buy new, get a Honda, Subaru, Toyota/Lexus or VW. If you want to buy used, get a Mazda, Nissan/Infiniti or Mitsubishi (or something Korean or American I wouldn't even consider). Here in Los Angeles, 2-3 year old Hondas, VWs and the like sell for near-new prices and aren't even worth considering. On the other hand, new Mazdas are ridiculously overpriced here and loaded with dealer add-ons, while a 2-3 year old one has dropped by half! My '99 ES was advertised at $5900 from a dealer several miles from home and I had no qualms about driving there and paying sticker price -- especially when my local dealers were selling DX and LX models for at least $3k more!

Mach 1

Sounds like you got a great deal on your ES. Rare, especially from a dealer.

Yeah, used VW's are overpriced also, considering thier sub-par quality compared to the jap cars. I didnt realize suburas held thier value so much.

A strange thing I noticed worth noting: In central GA, where I live, there are virtually NO suburus anywhere! No dealers, and no used one available for sale. I was considering a used Legacy, and was completly shocked when I searched all over the internet and newspapers to find that there just arent any in this area. Strange...Even the huge atlanta area had extremly little to no suburus..

protege563028

With interest rates as low as they are no one is buying used. Why buy used? No warranty, higher interest, and less of a choice of options. I have seen many 20,000 + cars going for as little 13,000. That's is why when you buy a new car you get what you want.