| BaldEagle |
Good news for MDX owners. An article in Money Magazine lists the 5 year resale value for cars, SUV's and trucks. This article, "The Best Cars of 2003", has the MDX at 48%, the highest of all SUV's on the list. Some other SUV's and their 5 year resale values from the article:
BMW X5--47%
Cadillac Escalade --40
TrailBlazer --36
Tracker--24
Durango--32
Expedition--34
Explorer--27
CRV--41
Cherokee--31
PilotEX--40
Liberty--31
Range Rover--37
RX300--42
GX470--42
LX470--40
Navigator--36
ML320--40
G500--46
Murano--38
Vitara--23 (lowest on the list)
Highlander--41
4Runner(6)--40
4Runner(8)--41
LandCruiser--44
RAV4--41
Sequoia--42
An article a few months ago mentioned the Kelly Blue Book top 10 SUV's for resale value and the MDX was included:
http://www.acuramdx.org/forums/show...7594#post107594
That list was alphabetical and no actual figures or ranking was given.
The new article in Money Magazine now shows the MDX as #1.
:29: :7: |
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| wmquan |
Good news for MDX owners. Wonder if the resale will start to go down once dealers finally start wide-spread discounting on the MDX? But we're well into year three now and discounts are not broad available, even in this sagging economy, and with lots of other choices. Acura's doing something right!
I'm surprised that GX470 value is so low. Then again, the vehicle has barely been out so who knows how accurate that really is.
Exploder at 27% -- ouch!!! Even with the huge rebates, discount financing, etc., etc. vs. the MDX's MSRP, 27% will sting after five years!
Too bad they didn't do the Volvo XC90, which like the GX470 is new. Volvo's tend to depreciate like crazy, and I was wondering if the same would go for their SUV. |
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| xcel |
Hi BaldEagle:
___Thank you for posting the depreciation information … I tried to convince my father to purchase an X before his Yukon a few months ago with the depreciation being the number one factor. He would go head to head with me regarding the X vs. the Yukon or any other domestic for that matter just for the fact that we were at war with Japan some 60 + years ago … I even played the safety card and he would come back with pic’s of Battan Death March, Pearl, and the Lexington at the Battle of Midway … I can’t blame him in some respects given the era in which he was raised but at least everyone on this forum knows which vehicle is the proper choice ;)
___As for future depreciation, with X’s beginning to go for $1500 under MSRP in FL., GA., IL., NC., OH, and TX that I know of, I wonder if these numbers are going to hold up longer term? If you take a look at E-Bay, there are plenty of 01’s and 02’s to choose from and most are not hitting reserves. It will not be long and we may see X’s going out for just $1000 - $1500 over invoice! With a $3K under MSRP hit on an X at initial purchase, I would think the 5-Yr. out depreciation pricing would take a hit as well? This is speculation of course but I don’t know if Money mag has taken into account the X’s new found less than MSRP availability? On the other side of the coin, maybe Money’s estimates reflect a strict 5-Yr. depreciation irregardless of initial purchase price?
___In any case, the X appears to be at the very top of the list and I wouldn’t consider anything else out there at the moment.
___Good Luck
___Wayne R. Gerdes
___Hunt Club Farms Landscaping Ltd.
___Waynegerdes@earthlink.net |
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| cmdpm |
i believe that the % values after 5 years reflect the retained value as a function of the manufacturers msrp.
so, if a car is heavily discounted and/or a low factory finance rate is offered then the total discount out the door is part of the lost value at the end of the five years.
a simple example would be...
msrp=40000
manufacturer discount/rebate at time of purchase=3000
0% financing for 5 years-savings of 5000 compared to true market interest rate=5000
effective purchase price=32000
this creates an immediate "loss" (on the open market) of 8000 or 20%.this is in additon to "normal depreciation" which takes into account many factors, most importantly in the free market, supply and demand at the end of the five years. the point is that the buyer of this car does not lose all of the total depreciation as they did not suffer the 20% of the loss ( no real out-of-pocket loss) when they signed on the dotted line.
the converse is also true...using the MDX as the example, the more dealers that maintain the msrp at sale, the greater the retained value of the MDX over the years (assuming the demand
continues for pre-owned MDXs). so if you can afford the MDX at msrp, you enter a club where the dealers "protect" your "investment" when they don't discount. in a purely economic sense, current MDX owners are "better off" when MDXs continue to sell at msrp.
when dealers begin to discount MDXs across the country then we will lose more value at resale.
regards,
chris
:7: celebrate life |
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| BaldEagle |
quote:
Originally posted by wmquan
Too bad they didn't do the Volvo XC90, which like the GX470 is new. Volvo's tend to depreciate like crazy, and I was wondering if the same would go for their SUV.
They did have the XC90 on their list. It's 5 year resale value was 42% per the article.
Sorry I left that one off. Although I didn't do all of them that was an oversight on my part.
I looked on Money Magazine's website to see if I could provide a link for this article but it is not there, only articles thru Feb 2003 are on the site. The Best Cars Of 2003 article is in March's edition. |
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| BaldEagle |
From the same article, "The Best Cars of 2003", they had a Sports Cars category. Highlights of 5 year resale values from that list:
BMW Z4 2.5i-----------41%
BMW Z4 3.0i-----------39
Corvette----------------45
Mustang GT Deluxe--34
S2000------------------48
SLK---------------------42
SL500------------------40
350Z-------------------38
911 Turbo-------------50
911 Carrera----------44
Boxster----------------43
Boxster S-------------45 |
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| laborlitigator |
| Good point regarding the XC90. . . which still looks butt ugly! |
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| laborlitigator |
quote:
Originally posted by BaldEagle
From the same article, "The Best Cars of 2003", The had a Sports Cars category. Highlights of 5 year resale values from that list:
BMW Z4 2.5i-----------41%
BMW Z4 3.0i-----------39
Corvette----------------45
Mustang GT Deluxe--34
S2000------------------48
SLK---------------------42
SL500------------------40
350Z-------------------38
911 Turbo-------------50
911 Carrera----------44
Boxster----------------43
Boxster S-------------45
Surprising the SL500 is so low. . . |
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| BaldEagle |
Luxury Cars 5 year resale values from the article:
3.2RL Type S-----41%
A4 AWD 4Dr------38
BMW 330i 4Dr----41
Cad CTS------------30
G35 2 Dr------------36
G35 4Dr-------------39
Q45-------------------35
Jag S V8------------35
ES 300---------------42
IS 300-----------------41
LS430-----------------42
Lincoln LS V8------28
MB C230-------------37
MB C320-------------40
MB CLK320---------47
MB CLK320 conv--51 (highest of all lists)
MB CLK430 conv--50
MB CLK500----------46
E500--------------------39
OLDS Aurora--------21
Mitsubishi Diam----27
Volvo S80-------------32
Interesting that they put the G35 with the luxury car list. It could have been with the sport cars IMO.
In all catagories only 3 were as high or higher than the MDX, the 2 MB convertibles and the Porshe 911 Turbo. |
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| wmquan |
| SUV's as a class tend to do fairly well in resale. Hopefully that won't change much as the market gets absolutely flooded with them. |
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| BaldEagle |
2003 Minivans 5 year resale values per Money Magazine:
Chev Astro-------27%
Chrysler T&C----31
Dodge Caravan--30 (average of 4 different models listed)
Windstar-----------24
Windstar LX-------26
Odyssey (EX & LX)--47
GMC Safari--------27
Sienna CE----------38
Sienna LE-----------41 |
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| xcel |
Hi BaldEagle:
___Would you mind posting the Compacts depreciation list if Money has them listed? In particular, the 2003 Toyota Corolla LE?
___From the numbers you posted, I guess it makes better financial sense for us to have purchased the X instead of waiting to purchase a loaded 04 Sienna LE. I am going to miss the larger room of the Minivan vs. the X however …
___Thanks in advance.
___Wayne R. Gerdes
___Hunt Club Farms Landscaping Ltd.
___Waynegerdes@earthlink.net |
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| wmquan |
If the new Sienna is as good as the specs promise it to be, its resale will be very close to the MDX. Not that the Odyssey is close to the MDX, 47% vs. 48%. The previous Sienna was hurt badly by the Odyssey because the latter simply was a better minivan for most buyers (more minivan versatility -- more passenger and cargo room, the magic seat, etc.). Only Honda's lack of production capacity on the Odyssey kept Sienna sales from being hurt further.
The new Sienna, at least on paper, outdoes the Odyssey the same way (even more passenger and cargo room, and a 60/40 magic seat which really helps with cargo).
The MDX resale values will drop when the inevitable, though long overdue, widespread-discounting begins. The Sienna will get discounts after a while, because Toyota will produce a ton of them.
But even with discounting, the MDX's resale value will stay pretty high, for obvious reasons.
So much for the vaunted Mercedes-Benz resale value, the M-class's numbers are pretty embrassing. They reflect the aggressive discounting to sell the new models; the fact that MB added nice features to newer models but because of the market was unable to substantially raise the vehicle price and the bad quality reputation of the vehicle. |
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| wmquan |
BaldEagle,
Thanks for posting the numbers. Just out of curiousity, was the Buick Rendezvous listed? The folks on Edmunds like to brag about how resale value is offset by the fact that the Rendezvous can be purchased at huge discounts under MSRP.
Thanks. |
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| BaldEagle |
Small Cars 5 year resale values from the article:
Cavalier LS---------26%
Neon-----------------23
Focus-----------------28 (average of 5 models listed)
Civic DX--------------39
Civic EX--------------42
Hundai Accent------22
Kia Rio---------------21
Mini Cooper---------49 (opps, one more higher than the MDX that I missed)
Lancer----------------28
Sentra----------------34
Alero------------------24
Sunfire----------------24
Vibe--------------------31
Ion----------------------28
Impreza RS----------38
Impreza WRX-------41
Celica------------------37
Corolla CE------------35
Corolla LE-------------37
Echo---------------------35
Matrix--------------------38
Matrix AWD-----------38
Golf-----------------------41
Jetta----------------------43
Beetle--------------------42
quote:
Originally posted by xcel
Hi BaldEagle:
___Would you mind posting the Compacts depreciation list if Money has them listed? In particular, the 2003 Toyota Corolla LE?
The article also has values for mid-size cars, station wagons and pickup trucks. If anyone is interested I'll post some numbers from those categories also. |
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| BaldEagle |
quote:
Originally posted by wmquan
BaldEagle,
Thanks for posting the numbers. Just out of curiousity, was the Buick Rendezvous listed? The folks on Edmunds like to brag about how resale value is offset by the fact that the Rendezvous can be purchased at huge discounts under MSRP.
Thanks.
The Rendezvous was listed. The CX 2WD was at 29% and the AWD was 30%. |
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| mdxxxx |
| :29: More good news! |
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| Dale MDX |
As far as noticing that MDX's on eBay don't hit the reserve price, my surfing has shown that to be the case with almost any newish vehicle. Who's going to bid a high or fair price on eBay for something they can only see photos of, and not even drive, and it may be far, far away from home? With most newer cars, you can find what you want a lot closer to home, plus see and drive them. People are willing to put in a bid that would amount to a bargain price (like wholesale or a little lower) but that's about it, typically. For some older cars that are hard to find, especially in the "near-collectible" markets, it's somewhat of a different story, with some cars hitting reserve. It may also happen for a very hard to find new model (much harder to find than an MDX). (But still not likely, because if the vehicle is so hard to find, the seller should be able to get a fair price locally outside of an auction - the only reason it's on eBay is an attempt to get an inflated price).
For me, at least, there would still be that problem of needing to actually inspect the car. People tend to think their cars are in a lot better condition than they actually are. A car described as having "no rust" can mean anything from just that to just having no holes in the exposed body that a finger would fit through. Inspection services exist, of course, but the quality of their work is often unknown.
As far as projected MDX resale values 5 years down the road, they are just guesses. Things change over time. If gas goes up to $5 per gallon in 5 years, whether due to supply problems or taxes, an MDX won't be worth much, but there will be high demand for small, high-mpg cars. If the market is absolutely flooded with SUVs, and they are politically incorrect for whatever reason, the value will drop more than predicted. I think that a lot of projected resale values, besides being based on current economic conditions, are based on older ideas of perceived value. A case in point is the generally high projected values for Mercedes cars. People still think they are tops in reliability and quality, when the actual evidence says they have declined to being very average (and below average in the case of the M SUV and C-class reliabiltity). That would say to me that their retained value projections might be overstated, because public opinion will start to catch up to reality.
It's all guesswork. It's a factor worth considering when buying a vehicle, though. There are cars where its a pretty certain bet that they will have high depreciation, such as mid- or full-size American sedans used in rental fleets. |
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| harmonr1 |
quote:
Originally posted by BaldEagle
2003 Minivans 5 year resale values per Money Magazine:
Chev Astro-------27%
Chrysler T&C----31
Dodge Caravan--30 (average of 4 different models listed)
Windstar-----------24
Windstar LX-------26
Odyssey (EX & LX)--47
GMC Safari--------27
Sienna CE----------38
Sienna LE-----------41
Interesting that the Odyssey is almost the same as the X. Honda definately has a great chassis here. |
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| harmonr1 |
quote:
Originally posted by BaldEagle
From the same article, "The Best Cars of 2003", they had a Sports Cars category. Highlights of 5 year resale values from that list:
BMW Z4 2.5i-----------41%
BMW Z4 3.0i-----------39
Corvette----------------45
Mustang GT Deluxe--34
S2000------------------48
SLK---------------------42
SL500------------------40
350Z-------------------38
911 Turbo-------------50
911 Carrera----------44
Boxster----------------43
Boxster S-------------45
When my girlfriend goes shopping she always says it's not how much it cost, but how much she saved. I wonder if I can use that same line to convince her that I should get a 911 Carrera:2: |
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| octavian |
| Just for grins, I priced my 2000 Odyssey on Kelley for "Private Party" resale. It came back with a figure that is about 77% of the list purchase price, this after 3 years. 47% after 5 years seems reasonable. (yes, I know the Money article estimated 5 year resales for 2003 models, not 2000, but just wanted to ballpark the numbers). |
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| ndahbar |
| Buying new f**king sux big time. OMG thousands and thousands of dollars lost in the first 2-3 years. I will never buy brand new, even if I become very wealthy. Lease only. Buy used certified pre-owned or something, far better. Geez, cars just depreciate way too much. I mean 40-something percent of 40 or 50 or 60 or 70K over just 5 measly years? Jesus. NO FRIGGIN THANKS! |
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| mdxxxx |
quote:
Originally posted by ndahbar
Buying new f**king sux big time. OMG thousands and thousands of dollars lost in the first 2-3 years. I will never buy brand new, even if I become very wealthy. Lease only. Buy used certified pre-owned or something, far better. Geez, cars just depreciate way too much. I mean 40-something percent of 40 or 50 or 60 or 70K over just 5 measly years? Jesus. NO FRIGGIN THANKS!
Hey ndahbar, tell us what you really think... quit biting your tounge, and speak up! :D |
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| BaldEagle |
quote:
Originally posted by ndahbar
Buying new f**king sux big time. OMG thousands and thousands of dollars lost in the first 2-3 years. I will never buy brand new, even if I become very wealthy. Lease only. Buy used certified pre-owned or something, far better. Geez, cars just depreciate way too much. I mean 40-something percent of 40 or 50 or 60 or 70K over just 5 measly years? Jesus. NO FRIGGIN THANKS!
Buying used to save the big hit on depreciation is logical.
Leasing to save money on depreciation is not logical IMO. |
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| ndahbar |
Heheh, well of course that doesn't make sense, after all in a lease that is PRECISELY what you're doing! That is, paying the depreciation (plus interest).
Well, leasing sure as hell makes sense. This is why, in a sentence that even a child will understand: Either way with a new car, you are losing massive depreciation, so you might as well pay as little as possible (read: LEASE). YES we know that with a lease at the end of the day you pay a little more overall, but PER MONTH you save so much money that can be invested...I don't think I need to elaborate on that.
Ok guys THIS IS REALLY WEIRD. My dealer just called and gave me a money factor rate a lot worse than what you see on leasecompare and what some of you have been quoting, but for some reason, the monthly payment is superior to anything I've seen! I think it's the residual value he gave me of 55% after 4 years. Sweet! WOrked out well after all. Well, I will take that back...until everything is in writing in front of my eyes...signed for. :) |
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| Guitarmdx |
Is there a link that the money magazine article on the web?
Thanks!:cool: |
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| BaldEagle |
quote:
Originally posted by Guitarmdx
Is there a link that the money magazine article on the web?
Thanks!:cool:
No link, only a teaser mention of the article is now on the web site. To read the article you have to subscribe to the web site or buy the magazine. |
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| Dale MDX |
Don't bother with the Money magazine article. The data is worse than useless. It says a reasonable deal on an MDX is about 2000 under MSRP. Now how many people here have been able to get that? Maybe 1% or less? A Mini Cooper S goes for a discount off MSRP, according to them. A Pontiac Aztec is about the same off MSRP as an MDX. (Yea, right. Try $5000 or more off MSRP). Many cars you can easily find for invoice or less were listed as well above invoice. I think most of their data they created from some formula. The edmunds.com "true market values" are much, much closer to reality.
They did list relative insurance premiums, and assuming they are accurate (I have no confidence based on the data above), it might be of some use. |
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| MDXLuvr |
thanks for listing the values.
quote:
Originally posted by BaldEagle
From the same article, "The Best Cars of 2003", they had a Sports Cars category. Highlights of 5 year resale values from that list:
BMW Z4 2.5i-----------41%
BMW Z4 3.0i-----------39
Corvette----------------45
Mustang GT Deluxe--34
S2000------------------48
SLK---------------------42
SL500------------------40
350Z-------------------38
911 Turbo-------------50
911 Carrera----------44
Boxster----------------43
Boxster S-------------45
darn, the z really sucks at resale. i guess its due to nissan's record. i would think a car that is a tremendous bargain to begin with wouldn't lose as much value. |
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| BaldEagle |
quote:
Originally posted by MDXLuvr
thanks for listing the values.
darn, the z really sucks at resale. i guess its due to nissan's record. i would think a car that is a tremendous bargain to begin with wouldn't lose as much value.
These percentages are based on MSRP. When I looked at the Lincoln it looks real bad until I remembered that we paid about 15% under MSRP plus got 1.9% financing. Evidently the discounts that the manufacturer/dealers have to give to move the cars are part of the equation. |
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| MDXLuvr |
| yeah, but there isn't a whole lot of negotiating happening on the 350z. |
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| Guitarmdx |
I just bought a raffle ticket for $50 for a fundraiser for the Ronald McDonald House here in Tallahassee for a 350Z - wish me luck!
They are only selling 1,000 tickets. Much better odds than the Florida lottery!:cool: |
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