Massive depreciation!

[Jeff E.]

Just Kelley Blue Booked my "loaded" 2008 white liftback and it has dropped 4 thousand dollars in trade value in 6 months!!! These things do NOT hold their value.

[Shroomster]

Just Kelley Blue Booked my "loaded" 2008 white liftback and it has dropped 4 thousand dollars in trade value in 6 months!!! These things do NOT hold their value.

Were you planning on trading it in?


all I can say is that in my wife's eyes, her 'blue' is priceless....

[Loren]

Um... did you consult the book BEFORE you bought the car? What did you pay for it?

[MadMax]

Is this your first new car?

Most new cars depreciate considerably the second you drive them off the lot. The Yaris is no different, except in that you have a great car that will last a long time and will provide you with a great return on your investment.

Cheers! M2

[supmet]

How much would you pay for a car that has been in some unknown persons hands for 6 months?? Personally, I wouldn't buy any car for only $4000 less than a brand new car. 6 months of improper maintenance will EASILY amount to more than $4000.

My 2 year old yaris with 67k miles has only dropped around 4500-5000 dollars. That's pretty damn good resale value if you ask me.

[FunctionSpec]

KBB prices reflect current market conditions. Since the economy is not doing well, prices on all used cars have dropped considerably over the last couple months.

[Jeff E.]

Ok, Ok.... I get it. I was a bit upside down when I traded the ol jeep in for it and am using the fuel savings to pay off faster. Unfortunately, the gap is widening with depreciation. I was hoping to keep ahead of it and close the upside down gap. Thanks for the replies.

[kustom play]

if you do research you will find the yaris is one of the cheapest cars to own over the next 5 years

[tomato]

Just Kelley Blue Booked my "loaded" 2008 white liftback and it has dropped 4 thousand dollars in trade value in 6 months!!! These things do NOT hold their value.


First year is always the worst, then depreciation slows down. I just got a 2007 Yaris and she was not all that cheap (cheaper than a new one, yes, definitely but not dirt cheap, either). It was a calculated risk. We'll see what happens. I have no intention of trading in any time soon, however.

:burnrubber:

[nemelek]

Just Kelley Blue Booked my "loaded" 2008 white liftback and it has dropped 4 thousand dollars in trade value in 6 months!!! These things do NOT hold their value.

I just KBB my 10 month old base model 2008 Yaris Lift back and my results were very different than yours. There are a lot of factors to consider while using KBB. First “loaded” does not hold it’s value. Next is how good of a deal did you really get when you bought the car. Did you pay too much? The dealer has to make $2,000 on trade ins to be worth their effort. Finally you can’t add in Taxes, Title, or other fees when comparing prices.

My numbers.

Paid 12,632
Trade in value 10,300
Difference 2,332

Paid 12,632
Privet Party value 12,115
Difference 517

Paid 12,632
Retail Value 13,965
Difference (1,333)

A person now buying my used car from the dealer would pay 1,333 more for the car than I did. The dealer would make 3,665 on the exchange. If I sold the car on my own I would only lose 517 in depreciation. In reality I would lose much more than that because of lost taxes and other expenses.

When trading in a car I have found that the dealer used NADA and KBB like a bible if the numbers are in their favor. If KBB and NADA favors you, then they are meaningless to the dealer. Usually I’ll sell the car on my own. In this case 1,815 would be worth my effort.

[jambo101]

For a comparison check out some American economy cars trade in value.

[NJBob]

Funny I just checked mine and it's resale value is near what I payed for it. "Trade in" value is a whole other game however. You NEVER make out well on a trade because the dealer needs to make money on your car when they sell it. I got a good deal on my 2008 Liftback, the miles are low and it's in excellent shape.

[Bob_VT]

Ok, Ok.... I get it. I was a bit upside down when I traded the ol jeep in for it and am using the fuel savings to pay off faster. Unfortunately, the gap is widening with depreciation. I was hoping to keep ahead of it and close the upside down gap. Thanks for the replies.

How much of being "a bit upside down" ??? How long have you had the car and how much of the "yaris" is actually paid off? I imagine that you have not scratched the surface in the terms of payments.

If you would have purchased your car with 10-15% cash down and financed the rest on a 36- 48 month loan..... you would not be so flipped over.

[roxy1]

my yaris trade in value was very good on in october, though gas prices were higher at that time. here are the numbers:

bought in september 2007. paid $12700 (it was a base manual hatch w/ convenience package.
traded in october 1, 2008. it had 19,870 miles on it. i got $11,000 even on the trade toward an '09 corolla (which i got $300 over invoice)

$11000 was more than kbb trade value, but at the time they were selling yarii very quickly.

[bnther36]

Don't feel bad. I had a brand new Camry and the trade in on that dropped $6500 in less than 3 months. Between trade-in and taxes, I took a horrible beating on it. It was a nice riding car, but I don't recommend it for winter time driving; at least not where you can accumulate several inches of snow between plowing.

Incidentally, I feel your pain being a previous Jeep owner. I LOVED my Jeeps, and if given half the chance I'd drive one again but Jeep is going to have to do something about the MPG and reliability of their vehicles. Oh, and Chrysler should stop slapping the Jeep logo on every dodge that they think they can sell! If I wanted a friggen dodge, then I would have bought one!!

[ChinoCharles]

KBB prices reflect current market conditions. Since the economy is not doing well, prices on all used cars have dropped considerably over the last couple months.

+1

[cfiimei]

I believe the stealerships make WAY more on used cars (used retail minus trade-in) than they do on new cars. Wanna get ripped off? Trade a car in to a stealership.

[brainless twit]

You might also look it up on nadaguide.com - banks, insurance companies, and dealerships use NADA, not KBB.

[yaris prime]

Hmm...
I just bought an '07 on Monday, LB, MT, no pwr. package, 19k miles, like new. for about 9k and was thrilled about the price; best deal I could find in my area.
How much was that vehicle new 2 years ago, about 11.5k, maybe?
That doesn't seem like excessive depreciation to me.

[daf62757]

Just Kelley Blue Booked my "loaded" 2008 white liftback and it has dropped 4 thousand dollars in trade value in 6 months!!! These things do NOT hold their value.

Kelly Blue Book is a rip off scheme run by car dealers. If you use KBB you are going to get royally screwed.

I would check the NADA guide book.


And also, the low gas prices have effected the prices. When they go back up once Obama works his voodoo economics...the price will go back up and people will want gas efficient cars at a premium.

[yaris prime]

Kelly Blue Book is a rip off scheme run by car dealers. If you use KBB you are going to get royally screwed.

I would check the NADA guide book.


And also, the low gas prices have effected the prices. When they go back up once Obama works his voodoo economics...the price will go back up and people will want gas efficient cars at a premium.

+1

[ChinoCharles]

I believe the stealerships make WAY more on used cars (used retail minus trade-in) than they do on new cars. Wanna get ripped off? Trade a car in to a stealership.

They do.

[MadMax]

Actually, I bought my Yaris to offset the bad gas mileage I get with my Jeep (an LJ).

As we all know, Chrysler is in big trouble and there are rumors that the Jeep brand may go on the auction block. Navistar International Corporationis one company that is rumored to be interested, they are the modern owner of the International Harvester brand that made the Scout.

Anyhow, the Wangler is a reliable vehicle, especially with the 4.0L I6 that most of the TJs had. The new JKs have a V6 minivan engine that has been panned by many in the Jeep community, but the hope is that if Navistar International Corporation buys Jeep they may offer more of their diesels in future Wranglers. But we are talking about a design that is over 60 years old (the original Jeep was built in the early 1940s) and fuel efficiency was never a big issue. Some describe the design as a billboard on wheels, and the drag coefficient is 0.58 with the softtop. For comparison, the Yaris drag coefficent is 0.29. In my situation, my 05 LJ that is an auto with a 2.25 BB and 31x10.5 MTs gets 15 MPG if I am lucky, and my 08 Yaris LB which is also an auto returns almost 35 MPG. I plan to keep both as long as I can.

Anyhow, to the OP, the trade in value of your 6-month old Yaris is no judge of its worth. It would sell better via a private sale, and like any investment getting rid of it after such a short time is never a good idea. But if you have to, go price Yarii on Craigslist and you will see that they don't depreciate as bad as you think. Plus, it is a lot smarter to hang onto the car for as long as possible, which will yield the greatest return on your dollar.

Cheers! M2

[banjes1971]

I just paid a visit to my dealer for the yearly safety inspection on my Yaris and I was amused to see a hand-written sign posted next to the cashier window "We are actively seeking used cars. We will offer the highest trade-in value, or pay cash. Seeking Camry, Corolla, Prius, Yaris. Contact the sales department."

I didn't contact the sales department, but 'twas amusing to see a response to what I hear is an increasingly BRISK market for used cars as our economy (sadly) plunges ever deeper :(

Cheers,
B

[tomato]

I just paid a visit to my dealer for the yearly safety inspection on my Yaris and I was amused to see a hand-written sign posted next to the cashier window "We are actively seeking used cars. We will offer the highest trade-in value, or pay cash. Seeking Camry, Corolla, Prius, Yaris. Contact the sales department."

I didn't contact the sales department, but 'twas amusing to see a response to what I hear is an increasingly BRISK market for used cars as our economy (sadly) plunges ever deeper :(

Cheers,
B

I can confirm that the used car market absolutely, positively s...cks right now, if you're a buyer because everybody is hanging on to their good used cars.

The gas price is going to go up (don't go blame Obama for that, though, but that's a different topic all together, let's not even go there!!) and you'll be glad to own a gas sipper. :thumbsup:

[Jeff E.]

Thanks for the continued words, folks. I paid about 15 or 16 thousand for my yaris power package with added cruise, sound dampening and tint. My total loan was 22 thousand because of the jeep i traded. Yes, flipped but I had to cut monthly cost. I am saving, with payment, about 150 dollars a month over jeep cost. I have it payed down to 19,800 now and hope it doesnt depreciate much more so I can get this gap closed. Again, in a way I hosed myself, but not when you look at the current monthly savings. No, i have no intention of selling. The car is great. I call it my little suv since it has so much cargo space and is a champ in the snow. My friends call it the 'Butless" for obvious reasons. :o Thanks agian.

[tomato]

Don't feel bad, Jeff, we're all getting hosed one way or the other right now :( Home prices, retirement accounts are down, let's not even talk about the stock market, the job market, etc... so thank your lucky stars you've only lost $4K. We all have to hang tough in this very uncool economy, but this too shall pass, eventually, it always does. Meanwhile, you get to drive a cute, economical car, not perfect , to be sure, but pretty damn cool.

[1NZYaris1]

It can't be any whorse than the dep some are seeing on there homes :confused:

[YarisSedan]

Trade in value is much lower than private party value or retail value. There is a huge huge gap. For example a car that you would pay maybe 12k at a dealer or 10 from a private party the dealer would give you about 6-7k for it. Thats just the way it is. I would never trade in ANY car to the dealer. Even if they give you a good price for it they roll itinto the next car. The best way is to sell your car on your owna nd take that money with you for a down payment best way to get a good deal on the next car.

[nemelek]

Thanks for the continued words, folks. I paid about 15 or 16 thousand for my yaris power package with added cruise, sound dampening and tint. My total loan was 22 thousand because of the jeep i traded. Yes, flipped but I had to cut monthly cost. I am saving, with payment, about 150 dollars a month over jeep cost. I have it payed down to 19,800 now and hope it doesnt depreciate much more so I can get this gap closed. Again, in a way I hosed myself, but not when you look at the current monthly savings. No, i have no intention of selling. The car is great. I call it my little suv since it has so much cargo space and is a champ in the snow. My friends call it the 'Butless" for obvious reasons. :o Thanks agian.

I wouldn’t worry about “closing the depreciating gap” since you plan on keeping the car. The longer you keep it the less it will cost you in the long run. For example when I bought an 88 Toyota truck for 14,000 and sold it 16 years later for 3,000 and got another 3,000 for damages in an accident that I fixed my self I only paid 500/year for that truck. BTW it was the last time I made payments. I vowed to pay cash for every vehicle after that. Paying cash for the Yaris kept me from buying the power package and other extras. Living on yesterdays money instead of tomorrows money is a great place to be. I hope that someday you can get there.

[ddongbap]

WHen I traded in my X-Runner, I owed 7gs on it. So my Yaris was 11something + 7grand. Its down to 10gs I owe on it, after a year or so.

[supmet]

It can't be any whorse than the dep some are seeing on there homes :confused:

??? Every house around here is still selling for 2 times what they are really worth. If your house is worth less than you bought it for, you kind of deserve it.

[MUSKOKA800]

All vehicles "depreciate" substantially from MSLP to trade-in value immediately after sale. Anyone who trades a car in the first year is can expect to be taken to the cleaners. Why would a dealer give you close to what you paid for your now USED CAR when they can get new ones from Toyota at wholesale prices.
Wait a few years and you'll see how your Toyota has held it's value when compared to other brands.

[ddongbap]

??? Every house around here is still selling for 2 times what they are really worth. If your house is worth less than you bought it for, you kind of deserve it.

What? How can that make sense? Home value has a lot to do with location. And SoCali is a prime location. You can put a price on labor, and materials, but you can't put a set price on beach front status. Thats just epic.

[1NZYaris1]

??? Every house around here is still selling for 2 times what they are really worth. If your house is worth less than you bought it for, you kind of deserve it.

I don't own a house , i sold it to cover my medical bills :rolleyes: