turbotaz Posted May 10, 2005 Share Posted May 10, 2005 While I am anxiously anticipating the release of 06 info so that I can finally decide between getting a "deal" on 05 or ordering an 06, I checked out used car values on Edmunds.com. I was surprised by what I found. A 2000 Legacy GT Wagon has a private party price of $10,172 A 2001 Legacy GT Wagon has a private party price of $12,365 Unless you are planning to keep your cars for a very long time, it seems that the hit on resale value may cancel most if not all of the benefit of going with a an 05. Link to comment Share on other sites More sharing options...
ssaldana Posted May 10, 2005 Share Posted May 10, 2005 I wouldn't base the resale value off the 00 01 lgt body styles. This is a totally new redesign, depreciation values will vary significantly. Link to comment Share on other sites More sharing options...
turbotaz Posted May 10, 2005 Author Share Posted May 10, 2005 Why would that be? 00 Was the last redesign. Obviously 06 will always have a higher book value than 05. This might not be exact, but certainly shows the ballpark. I wouldn't base the resale value off the 00 01 lgt body styles. This is a totally new redesign, depreciation values will vary significantly. Link to comment Share on other sites More sharing options...
ssaldana Posted May 10, 2005 Share Posted May 10, 2005 05 was the last redesign Link to comment Share on other sites More sharing options...
timbuktu Posted May 10, 2005 Share Posted May 10, 2005 No offense there bud, but that's not exactly a fair example. Afterall, the 2000 model is a year older than a 2001 so its gonna be cheaper. Let's look at the Camry LE V6 2000 vs 2001 2000: $9205 2001: $10801 10801-9205 = 1596 So, what's the percentage of value retained between years? Camry 2000 vs 2001: 9205/10801 = .84 Legacy 2000 vs 2001: 10172/12365 = .82 Now, is 2% difference enough to claim that the Legacy lost more value? Afterall, the Camry holds value fairly well and it wasn't a new model year in 2000. So, I would've thought the difference in retained value would've been more than 2%. Or we could even look at the usual leader in this category, Honda: Accord EX 2000: 9516 2001: 11421 11421 - 9516 = 1905 9516/11421 = .83 So, the Accord (non model change year) retains 83% of its value from 2000 to 2001. To me, there doesn't seem to be much of a difference between model year changes and non-model year changes against vehicles of the same year when it comes to value retained from year to year. Link to comment Share on other sites More sharing options...
turbotaz Posted May 10, 2005 Author Share Posted May 10, 2005 Ssaldana, thanks for stating the obvious. I meant the last redisign before 2005. According to Edmunds, 2000 was a re-design (from 1999). So I view 2000 to 2001 comparison as pretty close to 2005-2006 5 years from now. Timbuktu, I agree with everything you say, but what is your point? All I am trying to say is that given the choice between 05 and 06 model year, the residual value on an 06 in 5 years may cancel out a good portion of the savings of trying to get a year-end deal. Now I later realized that perhaps the main reason my first example is not fair is that it does not take into account mileage. If you factor 70,000 miles on both cars, you have to deduct $800 from the value of the 2001 car. There is also time value of money, so the net may be still that 2005 would be ahead, but I guess that would depend on what 06 brings us (6-speed, nav, etc.) Link to comment Share on other sites More sharing options...
ssaldana Posted May 10, 2005 Share Posted May 10, 2005 no problem Link to comment Share on other sites More sharing options...
LGTL Posted May 10, 2005 Share Posted May 10, 2005 While I am anxiously anticipating the release of 06 info so that I can finally decide between getting a "deal" on 05 or ordering an 06, I checked out used car values on Edmunds.com. I was surprised by what I found. A 2000 Legacy GT Wagon has a private party price of $10,172 A 2001 Legacy GT Wagon has a private party price of $12,365 Unless you are planning to keep your cars for a very long time, it seems that the hit on resale value may cancel most if not all of the benefit of going with a an 05. I wondered the same thing and like you forgot the milage difference. Still, waiting for 06 seems reasonable. I'm considering waiting for a used 05. Per edmunds first year depreciation is 8000. But they assume the average sale is at 500 over, while you can buy around 1000 under pretty easy. Still thats a hit of about 6,500 to the car. Or do you guys think they will hold value better? I think the dealer was quoting me salvage value of like 14,300 for a 3 year lease, but its in their best interest to low ball there. Link to comment Share on other sites More sharing options...
timbuktu Posted May 10, 2005 Share Posted May 10, 2005 Its not just mileage its age. Cars lose value as they age regardless of mileage. So, you have to look at it two ways. 1. Percentage value lost between model years comparable to other cars 2. Percentage value lost between model year change and non-model year change. My point is, you can't simply look and point at two different model years and say "Look! The newer car has better resale." Because its newer (and probably has fewer miles) of course its gonna have a better resale value. A 10 year old Camry is cheaper than a 5 year old Camry. Its not fair to compare the resale values of the two directly. You have to look at it as a percentage lost. That's why I compared it to the Accord and the Camry. Those two cars of the same model years lost 16% and 17% of their resale value between the two years. On the flipside, the Legacy lost 18%. That's not exactly a big difference. And even more pertinent 2000 was not a first model year for either the Camry or the Accord, so if your theory was true they would have held much more of their value than the first model year Legacy. Link to comment Share on other sites More sharing options...
LGTL Posted May 10, 2005 Share Posted May 10, 2005 Its not just mileage its age. Cars lose value as they age regardless of mileage. So, you have to look at it two ways. 1. Percentage value lost between model years comparable to other cars 2. Percentage value lost between model year change and non-model year change. My point is, you can't simply look and point at two different model years and say "Look! The newer car has better resale." Because its newer (and probably has fewer miles) of course its gonna have a better resale value. A 10 year old Camry is cheaper than a 5 year old Camry. Its not fair to compare the resale values of the two directly. You have to look at it as a percentage lost. That's why I compared it to the Accord and the Camry. Those two cars of the same model years lost 16% and 17% of their resale value between the two years. On the flipside, the Legacy lost 18%. That's not exactly a big difference. And even more pertinent 2000 was not a first model year for either the Camry or the Accord, so if your theory was true they would have held much more of their value than the first model year Legacy. First model year had nothing to do with it, or at least not for what i was interested in. Plain and simple. Is any car's O5 model + 1500 rebate going to have a lower net cost (say over 5 years of ownership) than an 06 due to the higher resale of the 06. Link to comment Share on other sites More sharing options...
turbotaz Posted May 10, 2005 Author Share Posted May 10, 2005 The only reason I am considering this question is in deciding whether to buy an 05 LGT or 06 LGT at the end of the month. It does not really matter to me how other cars may compare. For that purpose, I think it is as simple as saying that the 06 LGT will have better resale value in 5 years than an 05 LGT. That is a given. Question is, whether it is enough to make-up for the $1500 rebate I would lose by getting an 06. Its not just mileage its age. Cars lose value as they age regardless of mileage. So, you have to look at it two ways. 1. Percentage value lost between model years comparable to other cars 2. Percentage value lost between model year change and non-model year change. My point is, you can't simply look and point at two different model years and say "Look! The newer car has better resale." Because its newer (and probably has fewer miles) of course its gonna have a better resale value. A 10 year old Camry is cheaper than a 5 year old Camry. Its not fair to compare the resale values of the two directly. You have to look at it as a percentage lost. That's why I compared it to the Accord and the Camry. Those two cars of the same model years lost 16% and 17% of their resale value between the two years. On the flipside, the Legacy lost 18%. That's not exactly a big difference. And even more pertinent 2000 was not a first model year for either the Camry or the Accord, so if your theory was true they would have held much more of their value than the first model year Legacy. Link to comment Share on other sites More sharing options...
timbuktu Posted May 10, 2005 Share Posted May 10, 2005 The only reason I am considering this question is in deciding whether to buy an 05 LGT or 06 LGT at the end of the month. It does not really matter to me how other cars may compare. For that purpose, I think it is as simple as saying that the 06 LGT will have better resale value in 5 years than an 05 LGT. That is a given. Question is, whether it is enough to make-up for the $1500 rebate I would lose by getting an 06. Ahhh, I finally understand what you're saying. The way you phrased it in your opening statement made me believe something else. More power to you. Link to comment Share on other sites More sharing options...
anand Posted May 10, 2005 Share Posted May 10, 2005 Keep in mind you have to finance that extra 1500 (if you were planning on financing that is). I tried out the numbers using the following values (TTL is what Edmunds estimates for Texas): No tradein, 6.25% sales tax, 0 down, TTL, 5% financing, 60 months. 25000 = 508.35/month = $30501.00 25000 - 1500 rebate = 480.04/month = $28802.40 That's a difference of 1698.60. Minus the $1500 that means it costs you about $200 extra to finance without the rebate. $200 isn't alot when you're talking about a car but if you really want to nickle and dime things you should keep it in mind. Link to comment Share on other sites More sharing options...
Limey Posted May 14, 2005 Share Posted May 14, 2005 Also keep in mind that right now I can sell you a 2005 GT for Invoice less the incentive $1500 but late June when we get the 2006 models we will be selling them closer to MSRP and there will obviously be no Dealer Cash. If you want the newer features of the 2006 then you get what you pay for, but if you want a great deal then the 05 is the way to go. Everyone has their own opinion but it is up to you and how long you plan on keeping the car for? David Cardwell. Internet Auto Sales. 813-880-5966 Direct line 813-884-7513 office 813-885-7160 fax 800-683-2532 toll free http://www.MastroSubaru.com http://www.MastroWRX.com Link to comment Share on other sites More sharing options...
turbotaz Posted May 14, 2005 Author Share Posted May 14, 2005 Glad I can sleep well knowing I can fall back on the VIP program. What extra features? What do you know? Dish it up! Also keep in mind that right now I can sell you a 2005 GT for Invoice less the incentive $1500 but late June when we get the 2006 models we will be selling them closer to MSRP and there will obviously be no Dealer Cash. If you want the newer features of the 2006 then you get what you pay for, but if you want a great deal then the 05 is the way to go. Everyone has their own opinion but it is up to you and how long you plan on keeping the car for? David Cardwell. Internet Auto Sales. 813-880-5966 Direct line 813-884-7513 office 813-885-7160 fax 800-683-2532 toll free http://www.MastroSubaru.com http://www.MastroWRX.com Link to comment Share on other sites More sharing options...
sutter2k Posted May 20, 2005 Share Posted May 20, 2005 re: ...you want the newer features of the 2006 then you get what you pay for, Problem is, we don't know if we want the newer features if we don't know exactly what they are. I am waiting till the features are published, then trying to decided between 05-06. Link to comment Share on other sites More sharing options...
kiem Posted May 23, 2005 Share Posted May 23, 2005 The local salesman told me the '06 Legacy GT will have a revised turbo - with about 15-20 more horses. Link to comment Share on other sites More sharing options...
Recommended Posts
Archived
This topic is now archived and is closed to further replies.