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YACT: How much of a hit would I take?

R

Reckoner

Lifer
As I've stated in previous threads, I'm not liking my 04 WRX as much as I thought I would. I still love the Subaru brand though, and I'm currently looking at a used 2005 Legacy GT. My current wrx payments are 318/mo. If I were to trade-in my WRX and get a Legacy GT, how much of a hit do you guys think I would take? And how much could I expect (approximately) my payments to go up? My car only has 17,600 miles on it and has remained stock.
 
Originally posted by: Zenmervolt
As soon as you drive it off the lot, you've lost 30% of the value. You'll take a big hit.

ZV
Click to expand...

You are exaggerating, right? I can't see how it's possible to lose 30%. Maybe 5% or something but not 30.
 
Originally posted by: DainBramaged
Originally posted by: Zenmervolt
As soon as you drive it off the lot, you've lost 30% of the value. You'll take a big hit.

ZV
Click to expand...

You are exaggerating, right? I can't see how it's possible to lose 30%. Maybe 5% or something but not 30.
Click to expand...

You lose tax for a start, then you lose whatever above the amount of tax.
 
Originally posted by: DainBramaged
Originally posted by: Zenmervolt
As soon as you drive it off the lot, you've lost 30% of the value. You'll take a big hit.

ZV
Click to expand...

You are exaggerating, right? I can't see how it's possible to lose 30%. Maybe 5% or something but not 30.
Click to expand...

I bought a used 2005 car last spring with 18K miles. It was 40% less than a new one, and don't forget to add the dealer's profit on top of that. Your's may not be that bad, but 5% is out of the question. Be happy if it's only 20%. The car is two years old!
 
Usually right when you drive the car off the lot, it's worth about 66% of what you paid for it.

Lesson to be learned: Don't buy new unless you plan on keeping it for 5-10 years.
 
Originally posted by: PaulNEPats
As I've stated in previous threads, I'm not liking my 04 WRX as much as I thought I would. I still love the Subaru brand though, and I'm currently looking at a used 2005 Legacy GT. My current wrx payments are 318/mo. If I were to trade-in my WRX and get a Legacy GT, how much of a hit do you guys think I would take? And how much could I expect (approximately) my payments to go up? My car only has 17,600 miles on it and has remained stock.
Click to expand...

Whether or not you decide to sell your WRX, you have already taken the hit. The day before you bought the car, you had $25k in cash and $0 worth of assets. The day after you bought the car, you had $0 in cash and $20k worth of assets.

Actually, I'm guessing you're more likely to currently have $0 cash, $20k in assets, and -$25k worth of debt...

At any rate, selling the car only exposes the depreciation.

This is a question you should have asked before you bought the WRX...but then, clearly you weren't planning on selling it so soon.
 
Well, you're certainly not upside down on your loan so that's good. What the price on the LGT? Shouldn't be more than about 21k IMHO. I'd guess you're gonna lose about 5-6k as a somewhat conservative estimate.

On the bright side, insurance on the LGT is probably less than the WRX.
 
Originally posted by: DainBramaged
Originally posted by: Zenmervolt
As soon as you drive it off the lot, you've lost 30% of the value. You'll take a big hit.

ZV
Click to expand...
You are exaggerating, right? I can't see how it's possible to lose 30%. Maybe 5% or something but not 30.
Click to expand...
No. As soon as a car is no longer "new" the market value drops around 30%. Doesn't matter if it's 10 miles or 15,000 miles.

ZV
 
Originally posted by: Zenmervolt
Originally posted by: DainBramaged
Originally posted by: Zenmervolt
As soon as you drive it off the lot, you've lost 30% of the value. You'll take a big hit.

ZV
Click to expand...
You are exaggerating, right? I can't see how it's possible to lose 30%. Maybe 5% or something but not 30.
Click to expand...
No. As soon as a car is no longer "new" the market value drops around 30%. Doesn't matter if it's 10 miles or 15,000 miles.

ZV
Click to expand...

Maybe for American cars but Japanese cars tend to be much better on the average.

I know my car would sell for a lot more than 70% of what I paid for it...probably more than 70% of what the MSRP was.

WRX's tend to keep value fairly well...certainly STi's do. IIRC a year old car is only 2-3k cheaper than a new one.
 
After checking, the 2005 model has about 57% residual value after 2 years, so on a trade in, the dealership will pay you less than 57% of the original MSRP.

Edit - And also with that, if you are buying a used car, it is always a good idea to get one with a low residual value.
 
Originally posted by: Cattlegod
NutBucket - It depends on how old your car is.

to the OP - The value you are looking for in the auto world is called "residual value" - the amount the car is worth after 2 years vs. its original MSRP:

http://www.cars.com/go/advice/Story.jsp...st_resale&story=hiResidual&aff=latimes
Click to expand...

Well, we're talking about a car 2 years old at most.

Besides, Zen is saying "as soon as you drive it off the lot" therefore the newer the car the more accurate the example. I bought my car ~5 months ago.

EDIT: Of course it depends on how you define the value. Could be what you paid vs. what a dealer would give you for it. Could be what you paid vs. what you could realistically sell iit for, etc.
 
Originally posted by: AgaBoogaBoo
Just wondernig, what don't you like about your WRX?

I don't really like AWD but that's a different issue 😛
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Why don't you like AWD?

I can't stand the oudated tranny, and the notchy shifting. If I were to trade it in to a dealership, I would imagine I would get around 17k for it. An 05 Legacy GT that I have my eye on has 23k miles, and is going for 23k. If I could get them talked down to 20-21k, it would be doable.
 
Uh, 23k? You can get a new '05 for less than that.

Btw, the tranny in the WRX and LGT are practically identical. Better make sure you're not going to dislike the LGT tranny after a few months.

I doubt you'll get 17k from a dealership but maybe I'm way off here.
 
Originally posted by: NutBucket
Originally posted by: Cattlegod
NutBucket - It depends on how old your car is.

to the OP - The value you are looking for in the auto world is called "residual value" - the amount the car is worth after 2 years vs. its original MSRP:

http://www.cars.com/go/advice/Story.jsp...st_resale&story=hiResidual&aff=latimes
Click to expand...

Well, we're talking about a car 2 years old at most.

Besides, Zen is saying "as soon as you drive it off the lot" therefore the newer the car the more accurate the example. I bought my car ~5 months ago.

EDIT: Of course it depends on how you define the value. Could be what you paid vs. what a dealer would give you for it. Could be what you paid vs. what you could realistically sell iit for, etc.
Click to expand...
Certain low-volume cars (the STi would qualify) defy this rule, but it does hold true even for Japanese cars. As soon as the car is no longer legally considered "new", you take a large initial hit on the resale value.

ZV
 
I still don't agree with you then Zen. My dad bought a new Camry in 2000. A year later the blue book was still more than what he paid. Granted he got a great deal but a Camry is certainly not a low-volume car.

Of course, I'm not saying the initial hit isn't at least a few thousand....but not 30% of the original selling price.
 
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