Depreciation of car thread

[iversonyin]

Originally posted by: MIKEMIKE

Originally posted by: Vic

Originally posted by: MIKEMIKE

Originally posted by: Vic

Originally posted by: mugs
Accord - 5 year depreciation = $14,956 or 55% of MSRP
Legacy - 5 year depreciation = $18,896 or 56% of MSRP
Mazdaspeed 6 - 5 year depreciation = $17,315 or 62% of MSRP
Mazda 6s - 5 year depreciation = $14,399 or 63% of MSRP
G6 - 5 year depreciation = $14,462 or 66% of MSRP

From Intellichoice.com

I completely agree with this ranking EXCEPT that the Mazda and Pontiac models are not even 5 years old, so any estimate of depreciation should be taken for the guess that it is (although I suppose they could use the old 626 and Grand Am depreciation rates, but that still leaves out the Mazdaspeed).

i was also going by 1 year dep. and pure $$ amounts.

1 year depreciation is kind of moot IMO and depreciation should always be calculated by percentages in order to not compare apples-to-oranges. If a high-end Mercedes depreciates 10% it loses roughly $10k in value, but if a Kia depreciates $10k it loses almost 100% of value. Which is the better buy?

all of these cars however are within 5 grand of each other MSRP.
what im saying though, everyone likes to say that GM cars depreciate like mad first year.

according to Edmunds, the g6 depreciated 6300 first year, Accord 5700, all the others were 7500+ which makes a HUGE difference to people who dont decide to calculate percentages.

GM cars depreciate more because their resale value. Even it might list that amount, I doubt you can sell a used G6 the price they listed.

 

[MikeMike]

Originally posted by: iversonyin

Originally posted by: MIKEMIKE

Originally posted by: Vic

Originally posted by: MIKEMIKE

Originally posted by: Vic

Originally posted by: mugs
Accord - 5 year depreciation = $14,956 or 55% of MSRP
Legacy - 5 year depreciation = $18,896 or 56% of MSRP
Mazdaspeed 6 - 5 year depreciation = $17,315 or 62% of MSRP
Mazda 6s - 5 year depreciation = $14,399 or 63% of MSRP
G6 - 5 year depreciation = $14,462 or 66% of MSRP

From Intellichoice.com

I completely agree with this ranking EXCEPT that the Mazda and Pontiac models are not even 5 years old, so any estimate of depreciation should be taken for the guess that it is (although I suppose they could use the old 626 and Grand Am depreciation rates, but that still leaves out the Mazdaspeed).

i was also going by 1 year dep. and pure $$ amounts.

1 year depreciation is kind of moot IMO and depreciation should always be calculated by percentages in order to not compare apples-to-oranges. If a high-end Mercedes depreciates 10% it loses roughly $10k in value, but if a Kia depreciates $10k it loses almost 100% of value. Which is the better buy?

all of these cars however are within 5 grand of each other MSRP.
what im saying though, everyone likes to say that GM cars depreciate like mad first year.

according to Edmunds, the g6 depreciated 6300 first year, Accord 5700, all the others were 7500+ which makes a HUGE difference to people who dont decide to calculate percentages.

GM cars depreciate more because their resale value. Even it might list that amount, I doubt you can sell a used G6 the price they listed.

depreciation == Resale value???

 

[DAGTA]

How is car depreciation determined? Is there a market analysis done on current selling prices of these cars after one year, two years, three years, etc?

 

[Vic]

Originally posted by: MIKEMIKE
all of these cars however are within 5 grand of each other MSRP.
what im saying though, everyone likes to say that GM cars depreciate like mad first year.

according to Edmunds, the g6 depreciated 6300 first year, Accord 5700, all the others were 7500+ which makes a HUGE difference to people who dont decide to calculate percentages.

Hmm... I see your point. I would speculate that this is because of GM's new pricing models. Depreciation is always calculated from original MSRP to resale value. GM used to always sell their cars below MSRP with lots of rebates, etc. Now they lowered their MSRP's and did away with most of the rebates. Hmm... was GM's high depreciation rates simply an illusion caused by their old "let's make a deal!" marketing stategy? Food for thought. If so, it certainly has bit them on the ass.

 

[MikeMike]

Originally posted by: Vic

Originally posted by: MIKEMIKE
all of these cars however are within 5 grand of each other MSRP.
what im saying though, everyone likes to say that GM cars depreciate like mad first year.

according to Edmunds, the g6 depreciated 6300 first year, Accord 5700, all the others were 7500+ which makes a HUGE difference to people who dont decide to calculate percentages.

Hmm... I see your point. I would speculate that this is because of GM's new pricing models. Depreciation is always calculated from original MSRP to resale value. GM used to always sell their cars below MSRP with lots of rebates, etc. Now they lowered their MSRP's and did away with most of the rebates. Hmm... was GM's high depreciation rates simply an illusion caused by their old "let's make a deal!" marketing stategy? Food for thought. If so, it certainly has bit them on the ass.

i would say that is one reason, and the fact that their cars back then were not near as good as the competitors and now adays GM is actually catching up, even though their market share is fading, its history ppl look at and history has gm < Toyota. currently id say it is GM~= Toyota, but not quite. but ppl still view it as GM << Toyota.

 

[Martin]

Originally posted by: Vic

Originally posted by: MIKEMIKE
all of these cars however are within 5 grand of each other MSRP.
what im saying though, everyone likes to say that GM cars depreciate like mad first year.

according to Edmunds, the g6 depreciated 6300 first year, Accord 5700, all the others were 7500+ which makes a HUGE difference to people who dont decide to calculate percentages.

Hmm... I see your point. I would speculate that this is because of GM's new pricing models. Depreciation is always calculated from original MSRP to resale value. GM used to always sell their cars below MSRP with lots of rebates, etc. Now they lowered their MSRP's and did away with most of the rebates. Hmm... was GM's high depreciation rates simply an illusion caused by their old "let's make a deal!" marketing stategy? Food for thought. If so, it certainly has bit them on the ass.

I don't think so. My mom was looking for a small used car recently, 5-6k. In that range she could get a 2001-2002 sunfire/cavalier under 100Kkm, or a 97-98 corolla with twice the milelage.

As you said, 1 year isn't all that indicative. Give it 4 more years...

 

[eldorado99]

What about the BMW made Mini's? Those things just about go up in value their depreciation is so negligable...

 

[MikeMike]

Originally posted by: Martin

Originally posted by: Vic

Originally posted by: MIKEMIKE
all of these cars however are within 5 grand of each other MSRP.
what im saying though, everyone likes to say that GM cars depreciate like mad first year.

according to Edmunds, the g6 depreciated 6300 first year, Accord 5700, all the others were 7500+ which makes a HUGE difference to people who dont decide to calculate percentages.

Hmm... I see your point. I would speculate that this is because of GM's new pricing models. Depreciation is always calculated from original MSRP to resale value. GM used to always sell their cars below MSRP with lots of rebates, etc. Now they lowered their MSRP's and did away with most of the rebates. Hmm... was GM's high depreciation rates simply an illusion caused by their old "let's make a deal!" marketing stategy? Food for thought. If so, it certainly has bit them on the ass.

I don't think so. My mom was looking for a small used car recently, 5-6k. In that range she could get a 2001-2002 sunfire/cavalier under 100Kkm, or a 97-98 corolla with twice the milelage.

As you said, 1 year isn't all that indicative. Give it 4 more years...

yet again, you are comparing GM's history. and their Rebates in the past to todays less rebates, and better cars, with lower MSRP's

and does a Mini compete in the 4 door sporty sedan segment?? i think not.

 

[eldorado99]

Originally posted by: MIKEMIKE

Originally posted by: Martin

Originally posted by: Vic

Originally posted by: MIKEMIKE
all of these cars however are within 5 grand of each other MSRP.
what im saying though, everyone likes to say that GM cars depreciate like mad first year.

according to Edmunds, the g6 depreciated 6300 first year, Accord 5700, all the others were 7500+ which makes a HUGE difference to people who dont decide to calculate percentages.

Hmm... I see your point. I would speculate that this is because of GM's new pricing models. Depreciation is always calculated from original MSRP to resale value. GM used to always sell their cars below MSRP with lots of rebates, etc. Now they lowered their MSRP's and did away with most of the rebates. Hmm... was GM's high depreciation rates simply an illusion caused by their old "let's make a deal!" marketing stategy? Food for thought. If so, it certainly has bit them on the ass.

I don't think so. My mom was looking for a small used car recently, 5-6k. In that range she could get a 2001-2002 sunfire/cavalier under 100Kkm, or a 97-98 corolla with twice the milelage.

As you said, 1 year isn't all that indicative. Give it 4 more years...

yet again, you are comparing GM's history. and their Rebates in the past to todays less rebates, and better cars, with lower MSRP's

and does a Mini compete in the 4 door sporty sedan segment?? i think not.

I'm just going to assume I missed something and agree with you.