Hybrid AWD

What exactly determines a vehicles overal depreciation? Comparing my 07 GMC Sierra vs my wifes 07 VW Jetta it seems as though her car has dropped like a rock.

So it got me thinking about all of the cars through the years and how the pricing of them has dropped without any clear reasoning to me as to why.

Cobra4B

Well... the market determines the value of a used car and the difference between that and the price paid when new is depreciation. Cars that are more desirable depreciate slower. For instance, a Porsche has a high initial cost but overall cost of ownership is low when you sell it because you can generally get more for them than say a Corvette. People perceive the P-car to be solid even when used.

Jaguars depreciate like crazy because of perceived quality issues, and many higer end cars fall when the warranty runs out.

For the most part the depreciation curve levels off after 4-5 years. In the minds of the average stupid consumer the car is "consumed" in that period and has little value. People think like that becuase they don't understand cars and thik a 5 year old car out of warranty will cost them $1,000,000.

I'm not really sure how else to answer your question... I feel it's pretty much summed up with "supply vs. demand".

vmspionage

I don't want to hear any bitching about depreciation. Buy an AMG then you can talk.

Hybrid AWD

That gave me the general idea. I just couldnt wrap my head around how kbb or NADA come up with the set "value".

Haha I don't even what to know. I was over your way not too long ago and that thing was pretty dirty.... and I was diggin' it!

vmspionage

Thanks I need to do a better job keeping her clean in the winter. Cold + holidays + daily driver = epic fail.

Cobra4B

Yeah MB depreciation is nuts... that's how my mom has her '07 CLS550. MSRP on the car was $80,xxx. She bought it this past April with 13,000 miles and an extended warranty for $42,xxx. So she basically got a brand new car for 1/2 price.

She was shopping the new CTS and had a $40k figure in her head. She mentioned she really loved a certain mercedes but figured it was a 6-figure car. That's when I informed her of the horrible depreciation curve and the merrits of a CPO car.

Basically people don't want used Mercedes' because they're affraid to own them out of warranty due to quality issues in the late 90s and early 2000s. Plus, you have to remember that dealers are sellign them for $10k off of sticker so the MSRP isn't the starting point anyway.

BAN HAMMER

My buick has held its value failry well

BUT the camry freakin plummeted.

vmspionage

Exactly, if you can make the depreciation work for you then it's great. MBZ quality has gone way up in recent years but you can still get the CPOs at a huge discount.

Strange... I thought yotas had decent resale?

BAN HAMMER

We bought it august 08 for $21K...certified, 20K miles, ......

Now in its current form with 40K on it its KBB'd to $16,500.

Sucks.

....AJ....

This is why I don't buy new cars. I can get a c6 vette in the low low 30s now.