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]

Originally Posted by 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.

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]

Originally Posted by 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.

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.

[nemelek]

Originally Posted by 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.

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]

Originally Posted by 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.

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]

Originally Posted by 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.

+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.