Low Selling Prices = Lower Resale?
#1
Low Selling Prices = Lower Resale?
It seems that TSX sales prices are dropping rapidly. I couldn't resist and just bought at $27200 w/ NAV and I'm sure other got better than that. Are supplise too high? If so will they be forced to do rebates or other incentives that will further lower resale values?
#3
Yea... that's actually a very killer deal.
Yes... lower selilng price = lower resale value.
That's also another reason why the American cars tend not to hold their value so well especially when they are bought new. It's because they usualyl heavily discount the majority of the models. Not only flooding the market, but also bringing the value way down as it's driven off the lot since they already got a huge discoutn on it.
Yes... lower selilng price = lower resale value.
That's also another reason why the American cars tend not to hold their value so well especially when they are bought new. It's because they usualyl heavily discount the majority of the models. Not only flooding the market, but also bringing the value way down as it's driven off the lot since they already got a huge discoutn on it.
#5
Originally Posted by sccpu3d
Is that a '05? or demo vehicle o.O? its kinda like 500 below invoice =/ Most dealers usually don't take 500 dollar hits per vehicle unless its last year's.
#6
Originally Posted by HollywoodTSX
No it's a 2006. Most people don't know there's a holdback of about $900. If you know that going in, and they have the inventory, and it's the end of the month and they're trying to meet their sales goals, well, that's how you get the best deal.
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#8
I wouldn't worry too much considering that my 04 w/ 31,500 miles was traded in for a hair under $20k and will probably sell to someone for around $22.5k as a CPO from a dealer. The TSX has held it's value very well considering that my car was purchased back in May of 2003.
#10
I'm willing to bet all these great deals in SoCal are on 5AT's. It seems Acura has recently flooded the market with 5AT's, while leaving the 6MT's as scarce as water in a desert. It is virtually impossible to get a 6MT at anything close to those prices, especially if you have to order.
#12
I'd love to know the full details of hollywood's deal. a dealer offering it for 400-700 below invoice is pretty crazy (even knowing about dealer holdback, which almost never enters negotiations).
#13
Maybe i'm not understanding the question, but resale is a percentage of residual value of the car. The value after a certain amount of time doesn't really how that much to do with the original price.
Ex. $50,000 Audi A6 after 3 years=$31,000
$50,000 M3 after 3 years=$43,000
Obviously the lower the price of the car, the lower the resale price, but the price itself doesn't affect depreciation.
Ex. $50,000 Audi A6 after 3 years=$31,000
$50,000 M3 after 3 years=$43,000
Obviously the lower the price of the car, the lower the resale price, but the price itself doesn't affect depreciation.
#14
Originally Posted by GIBSON6594
Maybe i'm not understanding the question, but resale is a percentage of residual value of the car. The value after a certain amount of time doesn't really how that much to do with the original price.
Ex. $50,000 Audi A6 after 3 years=$31,000
$50,000 M3 after 3 years=$43,000
Obviously the lower the price of the car, the lower the resale price, but the price itself doesn't affect depreciation.
Ex. $50,000 Audi A6 after 3 years=$31,000
$50,000 M3 after 3 years=$43,000
Obviously the lower the price of the car, the lower the resale price, but the price itself doesn't affect depreciation.
It certainly does. If people do their research, and find out everyone paid $27,000 for a car instead of the $30,000 MSRP....a year from now, you're not going to be able to get as much for the car. I think it's a pretty simple concept. If you tried to sell me a car for $25,000 that you paid $30,000 for, i'd be more willing to pay 25,000 rather than if i knew you paid $27,000 for it. then i'd negotiate more.....
#15
Originally Posted by bradykp
It certainly does. If people do their research, and find out everyone paid $27,000 for a car instead of the $30,000 MSRP....a year from now, you're not going to be able to get as much for the car. I think it's a pretty simple concept. If you tried to sell me a car for $25,000 that you paid $30,000 for, i'd be more willing to pay 25,000 rather than if i knew you paid $27,000 for it. then i'd negotiate more.....
#16
Originally Posted by bradykp
It certainly does. If people do their research, and find out everyone paid $27,000 for a car instead of the $30,000 MSRP....a year from now, you're not going to be able to get as much for the car. I think it's a pretty simple concept. If you tried to sell me a car for $25,000 that you paid $30,000 for, i'd be more willing to pay 25,000 rather than if i knew you paid $27,000 for it. then i'd negotiate more.....
What you said, while maybe true, is based on the assumption that (a) people will do research and (b) people will negotiate.
#17
Originally Posted by GIBSON6594
What you said, while maybe true, is based on the assumption that (a) people will do research and (b) people will negotiate.
#18
Originally Posted by bradykp
and this is a horrible assumption when it comes to buying cars?
It's just not a law/rule that high or lower original cost will directly affect resale value.
#19
Originally Posted by GIBSON6594
No, it's not. That's why I said your statement may be true.
It's just not a law/rule that high or lower original cost will directly affect resale value.
It's just not a law/rule that high or lower original cost will directly affect resale value.
but who knows!
#20
Lower resale will only happen if the deals are nationwide (like incentives and rebates). If this is a localized deal, sort of like a YMMV deal, than I don't think it will affect resale value at all. However, if all Acura dealers start lowering their prices for this year or next..etc, then it sucks for everyone that paid over invoice for the car.
#21
Originally Posted by ninjamyst
Lower resale will only happen if the deals are nationwide (like incentives and rebates). If this is a localized deal, sort of like a YMMV deal, than I don't think it will affect resale value at all. However, if all Acura dealers start lowering their prices for this year or next..etc, then it sucks for everyone that paid over invoice for the car.
#22
Originally Posted by HollywoodTSX
No it's a 2006. Most people don't know there's a holdback of about $900. If you know that going in, and they have the inventory, and it's the end of the month and they're trying to meet their sales goals, well, that's how you get the best deal.
#23
Originally Posted by bradykp
It certainly does. If people do their research, and find out everyone paid $27,000 for a car instead of the $30,000 MSRP....a year from now, you're not going to be able to get as much for the car. I think it's a pretty simple concept. If you tried to sell me a car for $25,000 that you paid $30,000 for, i'd be more willing to pay 25,000 rather than if i knew you paid $27,000 for it. then i'd negotiate more.....
You cant just base pricing off of our little microcosm here. Most of the members are savvy enough and do the research to get a good deal. Not everyone in the world does this...
#24
Originally Posted by joerockt
I really dont think you can base your offer of a used car on what the buyer orginally purchased it for. If the MSRP of a new car was $29,035 then thats all you have to go on. Im certainly not going to show a potential buyer what I paid orginally for a car I have for sale, nor do I expect someone to show me. KBB gives you a pretty good starting point. You could argue till your blue in the face with someone who paid 27K, for a 29K car, but bottom line, its still going to be based off the MSRP.
You cant just base pricing off of our little microcosm here. Most of the members are savvy enough and do the research to get a good deal. Not everyone in the world does this...
You cant just base pricing off of our little microcosm here. Most of the members are savvy enough and do the research to get a good deal. Not everyone in the world does this...
if i go on admonds and get the TMV price...it tells me what people are paying for the car on average....which, if i were buying a used car, i'd base my pricing on that.
i'm sure not all cars depreciate from MSRP. think of all the cars with very high msrp's but have deep discounts associated with them, that affects the resale.
obviously, a few people getting great deals on the TSX won't hurt the big picture, but if it's a sign of things to come....and it happens on a larger scale, it could. not to mention hurt the value of the 2005s and 2004s.
#25
Originally Posted by bradykp
true, but hollywood's statements say the dealer offered it to him for 27,400, then another undercut that at 27,200.
if i go on admonds and get the TMV price...it tells me what people are paying for the car on average....which, if i were buying a used car, i'd base my pricing on that.
i'm sure not all cars depreciate from MSRP. think of all the cars with very high msrp's but have deep discounts associated with them, that affects the resale.
obviously, a few people getting great deals on the TSX won't hurt the big picture, but if it's a sign of things to come....and it happens on a larger scale, it could. not to mention hurt the value of the 2005s and 2004s.
if i go on admonds and get the TMV price...it tells me what people are paying for the car on average....which, if i were buying a used car, i'd base my pricing on that.
i'm sure not all cars depreciate from MSRP. think of all the cars with very high msrp's but have deep discounts associated with them, that affects the resale.
obviously, a few people getting great deals on the TSX won't hurt the big picture, but if it's a sign of things to come....and it happens on a larger scale, it could. not to mention hurt the value of the 2005s and 2004s.
So, your pretty much right back where you started.
#26
Originally Posted by joerockt
Well, guess what, the TMV for an 06 Navi 6MT is $29,762. And their TMV for my 04 Navi 6MT with 15K miles is $24,034 and KBB shows $25,065.
So, your pretty much right back where you started.
So, your pretty much right back where you started.
i'm just saying, in theory, i'd be worried if TSX's were selling at invoice across the board. I still have no idea how long we'll kep the car, somewhere between 3-5 years. but we're sure going to drive the heck out of it. 2400 miles in 6 weeks already!
#27
Originally Posted by bradykp
well that's a good sign then
i'm just saying, in theory, i'd be worried if TSX's were selling at invoice across the board. I still have no idea how long we'll kep the car, somewhere between 3-5 years. but we're sure going to drive the heck out of it. 2400 miles in 6 weeks already!
i'm just saying, in theory, i'd be worried if TSX's were selling at invoice across the board. I still have no idea how long we'll kep the car, somewhere between 3-5 years. but we're sure going to drive the heck out of it. 2400 miles in 6 weeks already!
#28
#29
Originally Posted by Motohip
#30
Here...
https://acurazine.com/forums/showthread.php?t=28105
I posted in this thread on what TSXs are doing at dealer auctions. It looks like these cars have great resale values.
Diggs
I posted in this thread on what TSXs are doing at dealer auctions. It looks like these cars have great resale values.
Diggs
#32
Originally Posted by JerseyGlocker
It must be something with California. I went on carsdirect.com and the price of a TSX in SO Cal was MUCH lower than the cost of a TSX on carsdirect here in New Jersey.
I want to add that there was ZERO negotiation involved in getting that price. The first dealer offered it vial email, and the second dealer said if I had it in writing he'd beat it "by a couple hundred". He never asked to see the other offer but did sell for $27,200 with no other deal fees.
I'm not going to mention the dealers as a courtesy... as they told me "we'll just make it up on the next guy".
#34
Originally Posted by HollywoodTSX
I'm not going to mention the dealers as a courtesy... as they told me "we'll just make it up on the next guy".
I understand that you want to be friendly w/ the dealership, but you can also help the others in the SoCal area too.
How bout this - which dealer ship offered the second best price. I am working w/ the dealership in Glendale, so any help would be appreciated
#35
Originally Posted by HollywoodTSX
I'm not going to mention the dealers as a courtesy... as they told me "we'll just make it up on the next guy".
#36
Originally Posted by Gooker1
I understand that you want to be friendly w/ the dealership, but you can also help the others in the SoCal area too.
How bout this - which dealer ship offered the second best price. I am working w/ the dealership in Glendale, so any help would be appreciated
How bout this - which dealer ship offered the second best price. I am working w/ the dealership in Glendale, so any help would be appreciated
Hint: Consider "the largest Acura dealer in the nation"... or do they all claim that?
#37
Originally Posted by HollywoodTSX
If you can wait, try buying at the end of the month (too late today I think). Email them an offer, tell them you'll buy that day and have no trade and your own financing. I really don't think it matters which dealer go to if they have the inventory.
Hint: Consider "the largest Acura dealer in the nation"... or do they all claim that?
Hint: Consider "the largest Acura dealer in the nation"... or do they all claim that?
#38
Originally Posted by HollywoodTSX
If you can wait, try buying at the end of the month (too late today I think). Email them an offer, tell them you'll buy that day and have no trade and your own financing. I really don't think it matters which dealer go to if they have the inventory.
Hint: Consider "the largest Acura dealer in the nation"... or do they all claim that?
Hint: Consider "the largest Acura dealer in the nation"... or do they all claim that?
Thanks for the tip! Much appreciated!!
#39
Originally Posted by GIBSON6594
Maybe i'm not understanding the question, but resale is a percentage of residual value of the car. The value after a certain amount of time doesn't really how that much to do with the original price.
Ex. $50,000 Audi A6 after 3 years=$31,000
$50,000 M3 after 3 years=$43,000
Obviously the lower the price of the car, the lower the resale price, but the price itself doesn't affect depreciation.
Ex. $50,000 Audi A6 after 3 years=$31,000
$50,000 M3 after 3 years=$43,000
Obviously the lower the price of the car, the lower the resale price, but the price itself doesn't affect depreciation.
#40
Originally Posted by Zoopa
Don't know if I'm not following you exactly, but I believe, the selling price of the car does effect the resale. This is evident in most American cars which tend to lose 50% of their value in two-years. Cadillac sedans, reasonably similar to a luxury sedan like the A6 example above lose their value in an even more dramatic drop.
No doubt, if GM was selling cars last year at employee discounts, the value of those cars will drop signifincatly. Since Honda dosent do this, values still remain high...