Ugh Domestics lose their value WAY too fast.

[Freejack2]

My car which I bought last year new is, at trade in value, worth a little over 1/2 of what I paid for it 1 year ago. Private party it's over $6000 less than I paid for it. Why the hell do domestics lose their value so quick?

Mind you I'm very happy with the car and I plan to drive this car for at least 7 years or longer. At this rate of depreciation I figure I'll get about 25 cents if I waited 10 years to trade it in.
I can see it now:

Salesman: Well the 2012 (insert vehicle name here) will cost you $21,832 with all taxes and fees.
Me: How much is my car worth towards trade in.
Salesman: Well lets see, 2002, 130,000 miles domestic... According to KBB your car is worth 25 cents.
Me: *Jaw drops*


*sigh*

 

[b0mbrman]

Heh...call me in 10 years if it still runs. I'll give you 26*

 

[Capn]

What car is it? It isn't quite fair to group them as domestics vs. imports, cause there are a lot of imports which depreciate quickly as well.

 

[Freejack2]

<< Heh...call me in 10 years if it still runs. I'll give you 26* >>



Heh I estimate the following repairs will be needed during it's life (probably way off)
2 clutch replacements
2 engine tune ups
2 major engine services, belts, or whatever else can go wrong with them.
1 set of brake rotors and god only knows how many brake pads
1 air conditioning service
God only knows what else.
I'll probably spend $6000 in repairs after the extended warranty expires at 75,000 miles and all non-warranty items before then (which is all of the above except the air conditioning)

 

[Lucky]

<< What car is it? It isn't quite fair to group them as domestics vs. imports, cause there are a lot of imports which depreciate quickly as well. >>



Yeah, yugo's come to mind.

 

[Kelvrick]

<< What car is it? It isn't quite fair to group them as domestics vs. imports, cause there are a lot of imports which depreciate quickly as well. >>


By imports he probably mean honda, toyota, and such. By domestic he means ford, gm, and such.

He doesn't think about Daewoo

 

[Parrotheader]

*edit* Nevermind. Thought you'd seriously put 130,000 miles on the car in one year. Saw since that that was just an exaggeration or something. *edit*

Fortunately, when I look at a car resale is the last thing on my mind. I get a car and I'm set for about 8 years or more. At that point, resale means a difference of maybe a few hundred bucks.

 

[Kelvrick]

<< You put a 130,000 miles on a car in one year?!?! I know some guys who do sales in various states, but even they only put about 50-60,000 miles a year TOPS on a car. Was that just an exaggeration for illustration purposes?

Fortunately, when I look at a car resale is the last thing on my mind. I get a car and I'm set for about 8 years. At that point, resale means a difference of maybe a few hundred bucks. >>


Keep in mind this is years from now. Most likely 7+ years with 130,000 miles on it. He's not trading it in now.

 

[kranky]

I've benn happy buying one- or two-year old domestics and driving them until they die. Last one I got was a year-old Olds Cutlass Supreme. New it was $21K, I got it for $14K.

But don't be discouraged by the quick depreciation - it isn't as bad after the first couple of years, plus if you aren't going to sell it doesn't even matter.

 

[Freejack2]

I think when I do purchase a car next, a 1 or 2 year old used domestic might be the best way to go. I don't have anything against imports. (If they had still made the civic si coupe in 2001 I would be driving one of those) but I do like the idea that my car is made in America by an American company.
Sorry I won't mention the model anymore. I've seen what happens in any thread where a person mentions they own a specific non-sports car domestic. The people here get very rude and pretty much call anyone an a$$hole who hasn't bought an import.