Future value of a truck bought today

I am in the market and I am trying to compare different SUVs. I know that, as an example, a Ford generally does not hold its value as well as an Acura, but it probably costs less initially. I want to see an estimate of what a vehicle would be worth, say 3 years after purchase, so I can get a better idea of what a new truck will really cost per year. Is there a site with this information? I like my old Exploder but I am keeping my options open.

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Reply to
SmartyPants
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Well, you are talking apples and oranges..

A Ford *truck* holds it's value over a car any day, particularly a Nissan Acura.

Trucks and SUVs are still a relatively new venture for the Japanese and European makers, with a few exceptions.

If you want a simple idea, try thinking of it this way. I can buy today, a vehicle manufactured 10-12 years ago for a tenth of the price. That works out at about $3K a year. Oversimplified, but then, your new vehicle depreciates the minute you drive it off the lot. A car you buy today will depreciate at a faster rate than a truck you buy today. Buy a truck and conserve your money. Forget trying to compare apples and oranges.

Oh, I forgot the one thing I really like about Ford trucks. I can always buy new parts to fix them, whether it's a new Ford, or a 1951 F-1, or a 1928 bastard "T" pickup ( yes, I have worked on those ). You can't do that with car. Most manufacturer car parts start to dry up 10 years after manufacture.

Reply to
John Riggs

What I do is use KELLEY BLUE BOOK to see what the same model of 3 years ago is worth. It's the best estimate of what a new anything will be worth in 3 years.

Yes, you are right. The Japanese vehicles retain a higher % of their purchase price...but they cost more to begin with. So often the domestic vehicle, after all the rebates, is the better 3 year deal. You have to run the numbers.

All of that being said, here is a great rule of thumb: Most vehicles...new or used, have a financial half-life of 3 years. In other words, if you pay market value for a NEW OR USED vehicle, it will be worth about half that in

3 years. Japanese tend to be worth a hair more due to the perceived quailty advantage and some domestic vehicles will be worth a hair less. But it's a good rule of thumb. It works for used too. At any point in a vehicle's roughly 14 year expected showroom-to-junkyard life expectancy, it will be worth about half in 3 years. A $30,000 vehicle is worth $15000 in 3 years. In 3 more years (6 from showroom) it's worth $7500. In 9 years from showroom you're at $3250 and at 12 years it depends on the repairs needed or not as the value approaches zero.

manufacture.

Reply to
D.D. Palmer

Reply to
Big Shoe

Some interesting answers being offered up. Resale values have squat to do with my purchase decision. If it looks good sitting in my driveway and performs the tasks I ask, that's the one for me.

If, perchance, something were to go drastically wrong in Armpit, Saskatchewan..... I would prefer to drive something that had a locally available part supply - something that someone locally had knowledge and test equipment to deal with rather than count pennies five or ten years from now.

I'm an old school kinda guy (read that as 'curmudgeon').... I wont try to sway your mind but I will say that part of the purchase decision should include your preference. Too many people leave themselves less than pleased as they aim for something without tangible, immediate benefits.

Whatever your eventual choice..... drive wisely and safely....

Reply to
Jim Warman

Couldn't agree more. When we are on the way to Wisconsin and the old Exploder decides to take a stop on its own in Cascade Iowa, I want it to be fixed there, not have to wait for parts and a technician from Nagasaki to arrive on site. (Yes, I'm a bit of a redneck, and I don't buy Japanese cars.)

Reply to
Michael MacMahon

Geeez, Jim, didn't I say that? ;-)

Reply to
John Riggs

The Acura MDX is a truck, not a car. That is what I meant in my example. I never mentioned cars.

Using the KBB is a great idea, but there must be some even better guide. When a finance person quotes me on a 39 month lease for a new 2005 Anytruck or 2005 Anycar, he has in front of him the estimate of what it will be worth at the end of the lease. This is theoretically how the cost is determined for the lease. I want to see that chart. Does he use a KBB extrapolation? I dunno, but I doubt it.

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Reply to
SmartyPants

I'm not a big fan of import trucks. I wouldn't trust one to haul my horse and trailer without breaking down. They just aren't made the same, for some odd reason, and as Jim had already mentioned, when a truck breaks down, I need to be able to get the parts locally with no waiting.

I'll take any year Ford truck any day, and experience tells me they don't depreciate all that fast, and it's even better if it is a 4X4 Ford truck, and nothing smaller than 1/2 ton.

I'm one of those guys that drives his trucks 'til the wheels fall off ( usually around a quarter million miles or so ).

extrapolation?

Reply to
John Riggs

Don't go by lease-end residuals. While they ARE often close to the estimated value, manufacturers often raise and lower the residuals to make metal move (or not). Kelley Blue Book is a better guide.

extrapolation?

Reply to
D.D. Palmer

value, manufacturers often raise and lower the residuals to make metal move (or not). Kelley Blue Book is a better guide.

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Reply to
SmartyPants

Posts musta crossed in the "mail"...

Reply to
Jim Warman

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