Does anyone know approx sales price of 5-year used cars?
11-13-05, 11:09 AM
#1
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Does anyone know approx sales price of 5-year used cars?
I'm just curious. About how much do luxury cars like MB, BMW, and Lexus tend to go for when they're 5 years old? 10% of original MSRP? 30%?
11-13-05, 12:59 PM
#2
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Here are two organizations that can give you an approximation: Kelly Blue Book and NADA:
Copy and paste these sites...or just add them to your " Favorites " list and you will have them handy and ready to go.
http://www.kbb.com/
http://www.nadaguides.com/autohome2....wPr=0&wPg=2111
I myself use KBB quite often when estimating prices for people....NADA somewhat less so.
They are both very simple to use....try each a few times and it will be a snap. Just go to used cars, enter the make, model, year, body type and mileage, trim line, and it will show you standard or usually-purchased equipment. You add any other options it has...or delete what it doesn't have, enter condition ( if it asks for it ) and bingo, your price value comes up. KBB will usually ask for condition and choice of Trade-in / Private party / Retail values .....NADA generally doesn't.
The two different websites usually don't come up with the same exact value but are close enough to give what you asked for......a good approxomation.
Copy and paste these sites...or just add them to your " Favorites " list and you will have them handy and ready to go.
http://www.kbb.com/
http://www.nadaguides.com/autohome2....wPr=0&wPg=2111
I myself use KBB quite often when estimating prices for people....NADA somewhat less so.
They are both very simple to use....try each a few times and it will be a snap. Just go to used cars, enter the make, model, year, body type and mileage, trim line, and it will show you standard or usually-purchased equipment. You add any other options it has...or delete what it doesn't have, enter condition ( if it asks for it ) and bingo, your price value comes up. KBB will usually ask for condition and choice of Trade-in / Private party / Retail values .....NADA generally doesn't.
The two different websites usually don't come up with the same exact value but are close enough to give what you asked for......a good approxomation.
Last edited by mmarshall; 11-13-05 at 01:15 PM.
11-13-05, 01:46 PM
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Originally Posted by mmarshall
Here are two organizations that can give you an approximation: Kelly Blue Book and NADA:
Copy and paste these sites...or just add them to your " Favorites " list and you will have them handy and ready to go.
http://www.kbb.com/
http://www.nadaguides.com/autohome2....wPr=0&wPg=2111
I myself use KBB quite often when estimating prices for people....NADA somewhat less so.
They are both very simple to use....try each a few times and it will be a snap. Just go to used cars, enter the make, model, year, body type and mileage, trim line, and it will show you standard or usually-purchased equipment. You add any other options it has...or delete what it doesn't have, enter condition ( if it asks for it ) and bingo, your price value comes up. KBB will usually ask for condition and choice of Trade-in / Private party / Retail values .....NADA generally doesn't.
The two different websites usually don't come up with the same exact value but are close enough to give what you asked for......a good approxomation.
Copy and paste these sites...or just add them to your " Favorites " list and you will have them handy and ready to go.
http://www.kbb.com/
http://www.nadaguides.com/autohome2....wPr=0&wPg=2111
I myself use KBB quite often when estimating prices for people....NADA somewhat less so.
They are both very simple to use....try each a few times and it will be a snap. Just go to used cars, enter the make, model, year, body type and mileage, trim line, and it will show you standard or usually-purchased equipment. You add any other options it has...or delete what it doesn't have, enter condition ( if it asks for it ) and bingo, your price value comes up. KBB will usually ask for condition and choice of Trade-in / Private party / Retail values .....NADA generally doesn't.
The two different websites usually don't come up with the same exact value but are close enough to give what you asked for......a good approxomation.
11-13-05, 02:27 PM
#4
Lexus Fanatic
OK...I follow you....the ORIGINAL MSRP on a USED car. That service is difficult to find on-line. Neither KBB nor NADA post those values on-line, nor do a number of other sites I tried. unless they have recently changed it, I think you can still get it from the actual blue and yellow paper copy of the little NADA book that you can find at auto dealerships, banks, and at the public library. I know it would be more convienent to do it on-line, but I don't know of any websites that do it. But take a trip to your closest bank or library ( there you won't have pressure from auto salespeople ), get the paper copy of the NADA book, and I think you will find what you want.
Last edited by mmarshall; 11-13-05 at 02:31 PM.
11-13-05, 07:46 PM
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Originally Posted by 1SICKLEX
What cars? I can probably help off the top of my head.
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11-13-05, 07:59 PM
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You know I was trying to think of an answer to this so I just tried typing in "<car name and year here> original MSRP" in google, and it actually worked every time. I did some now discontinued cars to check if it worked (acura legend etc...). It's a kind of half-assed solution, but it seems to work.
11-13-05, 08:05 PM
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Originally Posted by Incendiary
This is more a general question, not about any particular model. I'm planning my car buying strategy for my next purchase... Several years down the line, if not more, but you can never plan too much when it comes to cars.
11-13-05, 11:46 PM
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11-14-05, 12:59 AM
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Okay, thanks to people's help, I looked up 7.5-year used BMWs. Seems based on original MSRP, dealer trade-in, fair condition, and 15,000 miles driven per year, residual value is about 10%.
Now I fully loaded a 2006 550i, came out to $73390.
No money down, lease at 36 mo with 15k miles per year:
1243 * 36 = $44748
Total comes out to $223740 over 15 years if you lease continually. For this money, you get to drive 5 cars.
No money down, finance over 60 mo with 5% interest rate:
1385 * 60 = $83100
Total comes out to $149580 over 15 years if you purchase every 7.5 years and trade in at the dealer assuming conditions described above. For this, you get to drive 2 cars. This money does not include cost of repairs. I figured a high estimate would be $3000 in repairs every year starting in year 3.5 of ownership, meaning over the 15 years there would be 8 years of costly repairs. $3000 for repairs * 8 years = $173580 total.
Is driving a new car every 3 years worth $50160 over 15 years to me? Hmm, tough call.
Anyway, not trying to start a finance vs lease argument, I'm sure that's been done ad nauseum here.
BTW, based on the conditions I described above (15k miles per year, dealer trade-in, fair condition, assessed by KBB, original MSRP obtained from carsdirect), 5.5 year used BMWs are worth about 30-35%. That's not bad. I'll have to check sometime to see when the initial steep drop in resale value (commonly thought to be within 1-2 years) plateaus (5-6 years out?), and then when it begins to drop more steeply again (if it even does). If the plateau does end around 5 years, I still wouldn't follow this general rule about when to sell just because I plan to always buy in the second to last model year, hoping for best reliability but not lame duck styling.
Now I fully loaded a 2006 550i, came out to $73390.
No money down, lease at 36 mo with 15k miles per year:
1243 * 36 = $44748
Total comes out to $223740 over 15 years if you lease continually. For this money, you get to drive 5 cars.
No money down, finance over 60 mo with 5% interest rate:
1385 * 60 = $83100
Total comes out to $149580 over 15 years if you purchase every 7.5 years and trade in at the dealer assuming conditions described above. For this, you get to drive 2 cars. This money does not include cost of repairs. I figured a high estimate would be $3000 in repairs every year starting in year 3.5 of ownership, meaning over the 15 years there would be 8 years of costly repairs. $3000 for repairs * 8 years = $173580 total.
Is driving a new car every 3 years worth $50160 over 15 years to me? Hmm, tough call.
Anyway, not trying to start a finance vs lease argument, I'm sure that's been done ad nauseum here.
BTW, based on the conditions I described above (15k miles per year, dealer trade-in, fair condition, assessed by KBB, original MSRP obtained from carsdirect), 5.5 year used BMWs are worth about 30-35%. That's not bad. I'll have to check sometime to see when the initial steep drop in resale value (commonly thought to be within 1-2 years) plateaus (5-6 years out?), and then when it begins to drop more steeply again (if it even does). If the plateau does end around 5 years, I still wouldn't follow this general rule about when to sell just because I plan to always buy in the second to last model year, hoping for best reliability but not lame duck styling.
11-14-05, 05:14 AM
#12
Nice work Incendiary. I don't think I could have done better (maybe because I dishonor my Asian backround with my lack of mathematical patience and skill).
I think that this reiterates that leasing is not really the most economical, but it is fitting for people that want to have a nice car but not the long term maintenance costs. I'm pretty sure that people in this forum are well aware that there are some car-traps out there that break down easily and frequently after a couple years or so.
That being said, I think that it is worth it to lease for three years if you decide on buying a car that is (a) lacks reliablity or (b) will be obselete in three years, such as an upcoming generation or style. It is more economical to purchase a reliable and technologically advanced car out there that will provide good function in the long run.
I don't think residual value is a huge factor when people are buying cars (note that most new models are hot, even though people are unaware of residual value). Most people only care about the initial price, and leave it to fate (or lack of knowledge on maintenance costs, mileage estimates, etc) on whether or not their cars will be worth anything in the future.
I think that this reiterates that leasing is not really the most economical, but it is fitting for people that want to have a nice car but not the long term maintenance costs. I'm pretty sure that people in this forum are well aware that there are some car-traps out there that break down easily and frequently after a couple years or so.
That being said, I think that it is worth it to lease for three years if you decide on buying a car that is (a) lacks reliablity or (b) will be obselete in three years, such as an upcoming generation or style. It is more economical to purchase a reliable and technologically advanced car out there that will provide good function in the long run.
I don't think residual value is a huge factor when people are buying cars (note that most new models are hot, even though people are unaware of residual value). Most people only care about the initial price, and leave it to fate (or lack of knowledge on maintenance costs, mileage estimates, etc) on whether or not their cars will be worth anything in the future.
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