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 to
Mark
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Great news! So who wants one?

Reply to
john

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 to
C. E. White

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 to
hls

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 to
FatterDumber& Happier Moe

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 to
hls

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 to
SMS

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 to
SMS

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