Really worried about resale. I bought an Acura because honda has nice resale but now i look at edmunds resale values for TLs and it shows that there is a 10K dollar drop when the model shape changed to the new shape. I was planning on keeping this car for a little less than 10 years and now im really worried for its resale value. Any comments to this nonsense?

 

:ibsomeonepostsabouthowa16yocanbuyanewcarandwhysho uldtheycareaboutresalevaluewhentheirparentsboughtt hecaranyway:

 

Forget about the resale value if you plan to keep it for ten years. And that is valid for most any car.

 

I dont know about other people and their children, but I care for what my parents work hard to buy. Im sorry for your parents if you never gave a crap about them and i feel sorry for you if your children think like you do. SO can someone please reply with a useful comment?

 

How many years can i squeeze out of the TSX before selling? I have a 5 year loan and then i need to use it for as many years as i can without a bill. Im thinking 7 years. Any suggestions?

 

Danish.....


I don't judge anyone on how they got their car so in response to your question....


I have been thinking about this myself and am probably going to drop mine after about 3 years. (05 CG AT).

I don't have much experience with the Honda/Acura warranty but my rule of thumb was to sell my VW's when they were about to go out of warranty. So it will either be about 3 years or right when it is going to go out of warranty.

That is the plan as of now. I mean, you, me, all of us, whoever paid the dealer for a sticker price all took some sort of a hit the minute we left the lot and will never make all the money back....so with that said, a few year old car, in good shape, usually gets the best money.

IMO

 

>> I was planning on keeping this car for a little less than 10 years

:mark_my_words_youwillwantadiffrentcarin5years:

with normal, proper care and usage, pretty much any Honda can last FAAARRR longer than you are willing to keep it.

 

I agree about wanting a new car sooner than that. I was at the dealer today and saw all the S2000's lined up. I was about ready to trade in the TSX right there!!!!!


Do the Honda/Acuras hold their value that well?

 

Acura's as a whole have very good resale value relative to most other cars. For example they have better than most Hondas. Body styles change. It's a fact of life. New styles are more attractive than older syles (Accords being the exception). Another fact of life. All you can really do is keep an eye on Honda and sell before (and if) a newer body style is coming out. But then again by that time you'll probably have sold your TSX anyway.
At your age you really shouldn't be worried about stuff like this. Let your parents lose sleep over it. If you really are interested though.. see how much a 01 Acura CL is still worth...do a KBB or Edmunds look up. Now compare that to most cars of that age.... like a 01 Accord.
Go get some good REM.
ENJOY THE CAR DAMNIT! THAT'S AN ORDER! :wink:

 

The 04 was on Edmunds top 10 best resale value list

The 05 wasn't

The TSX resale is going to be really good, don't worry about it, unless its the only factor in your decision.

1- This isn't a TL
2- All cars get redesigned over 10 years

 

Thought this recent wsj article was interesting and on point with this discussion:

http://online.wsj.com/article/SB1134...oo_hs&ru=yahoo

On the chart, Acura is lower than Honda in terms of its overall residual value after 3 years (approx. 53% to 50%).

 

If you look at the TL, the redesign from the 1st gen to 2nd gen wasn't that significant as far as technology / advanced features, styling, etc.

The current TL (3rd) gen is vastly different with tons of new features etc and much bolder styling, creating a distinctly newer car.

It's hard to say what the 4th gen TL with offer, but I doubt it will be as significant as the difference between 2nd & 3rd.

 

Can you snippet that article for those of us non WSJ online subscribers?
Thanks.

 

Very Good point!

 

That's great, but resale values on cars that are more than 8 years old are all around the same ballpark, with very few exceptions.

So if resale value is a big concern, it would make a lot more sense to buy cars that are extremely economical.

 

Even if the resale value is on par with other cars 10 years from now, it will probably be much more sought after than most cars. If you want to get a feel for resale values - go to Autotrader and compare - you'll be very plesantly surprised.

Also, you can't always compare the whole brand resale to an individual model. TL = volume model = lower resale. TSX = lower volume, less discount = higher resale.

 

Sorry about that... I thought that it was a public link. Here is a snippet (the important information -- the charts -- are buried in the article:

The Best Car Deal
Latest Resale-Value Rankings Are a Map
To How Cars Will Do at Trade-In Time
December 12, 2005

Auto makers can give customers a deal in a variety of ways -- cash upfront, discounted interest rates, free gas cards. But the brands that are doing best in the U.S. market are those that offer buyers a payoff not at the time of purchase, but at trade-in time.

In its annual review of projected resale values for new models, due out later this week, Automotive Lease Guide ranks BMW, Lexus, Honda and Toyota at the top among major, high-volume auto-industry brands. These same four brands were the best last year, and the year before that. ALG ranks BMW and Lexus rank No. 1 and No. 2 among luxury brands in terms of projected resale value; Honda and Toyota are No. 1 and No. 2 among non-luxury, or mainstream, brands.

According to ALG's forecasts, a 2006 model BMW will hold 53.6% of its value after three years, on average. By contrast, ALG projects that a 2006 Jaguar, last place among the brands surveyed, will hold just 38.1% of its value after three years. The latest Honda models are projected to retain 53% of their sticker price after three years; at Buick, the last-place mass-market brand on ALG's survey, models are projected to hold 37.9% of their value on average.

2006 LUXURY RESIDUAL RANKINGS
Brand Residual
BMW 53.6%
Lexus 52.5%
Land Rover 51.2%
Mercedes Benz 50.8%
Acura 50.4%
Infiniti 50.0%
Luxury Avg. 49.4%
Audi 48.7%
Cadillac 47.8%
Volvo 44.9%
Saab 43.8%
Lincoln 40.2%
Jaguar 38.1%
Source: Automotive Lease Guide

Put another way, ALG is saying that if you pay $25,000 for a Honda, you should be able to get about $13,400 for it within three years at trade-in. But a $25,000 Buick will probably be worth just $9,475 -- a difference of $3,925.

Consumers are smart -- they're demanding a good chunk of that difference upfront. The evidence: The average rebate for a GM vehicle in November, according to Autodata estimates, is $2,715 more than the average Honda rebate.

The names at the top of ALG's projected-resale-value lists generally are among the brands that are holding or gaining share in a tough U.S. market. Despite their generous and heavily promoted red-tag sales and family-plan deals, General Motors and Ford are losing money and market share in the U.S. this year. Poor resale value -- and consumer awareness of that problem -- exacerbate their problems.

Chrysler outspent GM and Ford on discounts last month, according to Autodata. But Chrysler has managed to gain share, and make money, in large part because of well-designed, smartly promoted products such as the Chrysler 300 and the Hemi engine. But Chrysler faces challenges. The Chrysler brand was above average on ALG's 2005 projected resale list, with an average projected resale value of 43.9% But for 2006, ALG says the average among mainstream brands has gone up to 44.5% from 42.5% a year ago, and the Chrysler brand has slipped to 43.3%.

Resale value "has become one of the biggest competitive advantages," says Raj Sundaram, president of ALG.

ALG's forecasts for a car's residual value -- the value of the vehicle at the end of a lease -- guide a lot of finance companies when they structure terms for a lease. To oversimplify, if you want to offer a customer a three-year lease at $299 a month (a total of $10,764 in payments) it's a lot easier for manufacturer to do that if the $25,000 car in question is likely to be worth $13,400 when the three years are up than if it's only likely to be worth $9,475.

With interest rates rising, Mr. Sundaram says leasing will likely again become an attractive way to structure deals around the industry's magic monthly-payment price points ($299, $399, $499.) Without strong projected resale values, weak brands will likely get weaker and strong brands stronger.

This isn't just a Detroit problem. According to ALG, luxury brands with below-average projected resale values include Jaguar, Saab, Volvo and Audi. Among mainstream brands, Korea's Hyundai and Kia and Japan's Suzuki join Detroit names such as Ford, Chrysler, Chevrolet, Mercury, Dodge, Pontiac and Buick below the average 44.5% residual-value mark.

But the Detroit brands have a huge need to turn around the negative perceptions of their vehicles and pricing strategies, a bad impression that's creating a vicious cycle. Consumers expect Detroit cars to lose their value faster than a Honda or a BMW, so they demand bigger price breaks up front, which in turn drives down the future resale values of the Detroit brands.

2006 MAINSTREAM RESIDUAL RANKINGS
Brand Residual
Honda 53.0%
Toyota 51.8%
Volkswagen 50.6%
Subaru 50.5%
Nissan 48.6%
Jeep 46.8%
Mazda 46.5%
Saturn 44.6%
GMC 44.6%
Average 44.5%
Chrysler 43.3%
Hyundai 42.9%
Pontiac 42.1%
Ford 41.8%
Chevrolet 41.7%
Mitsubishi 41.5%
Mercury 41.4%
Dodge 40.0%
Suzuki 38.2%
Kia 38.1%
Buick 37.9%
Source: Automotive Lease Guide

Breaking this cycle is one of the main reasons GM, Ford and Chrysler have tried to wean buyers off big rebates by promoting "value pricing." Again, to oversimplify, all three companies are trying to launch new models with comparatively reduced sticker prices or more features in hopes that customers will perceive the vehicles as inherently good deals without another $4,000 in the glove box. So far, this effort isn't going so well: October and November sales for GM and Ford were dismal.

But Mr. Sundaram says there are signs that the industry's troubled brands can turn around resale-value problems if they deliver compelling, well-designed vehicles at rational prices and then stick to their guns.

Mr. Sundaram says GM's forthcoming generation of large SUVs, represented by the Chevy Tahoe, could be among the top three models in the large-SUV segment, with a projected residual value of 52% after three years. That's just behind the Toyota Sequoia, No. 1 in the large-SUV segment at 55% projected residual value. Mr. Sundaram's reasoning for giving a high mark to the new Tahoe: "It's a hell of an execution," even though the large-SUV segment as a whole is challenged by higher gas prices and slumping sales.

Paul Ballew, GM's executive director of market and industry analysis, says the relatively strong residual-value prediction for the new Tahoe is a good start, but adds that over time GM hopes to improve that model's performance. Overall, Mr. Ballew says, GM prefers to base calculations of likely resale value on transaction prices, not sticker prices as ALG does. But Mr. Ballew says "residual values are extremely important." To lift the performance at Buick, he says, GM is overhauling the brand's model lineup and intends to cut back on sales of Buicks to daily rental-car fleets -- a practice that pushes up market share in the short run, but generally pushes down resale values over the long haul.

Brands can rehabilitate themselves. Land Rover, for example, will be the No. 4 luxury brand for 2006 models, joining BMW, Lexus, Mercedes, Acura and Infiniti in the group of above-average luxury brands. In 2005, Land Rover was below average. The difference: Land Rover has a strong new model in the LR3, and the Ford brand slashed its average upfront discount in November by $2,027 to just $870 -- less than half BMW's $2,070 per vehicle level. (The industry-average discount in November was $2,363 a car, according to Autodata.)

Cadillac has also improved in recent years and is now just below average for 2006 model luxury brands. Good cars such as the CTS make a big difference. If Cadillac could just sort out the problems with its SRX crossover utility, they'd be at the average, Mr. Sundaram says.

The Ford Fusion midsize sedan will get a 46% residual rating, which is comparatively strong, Mr. Sundaram says.

The Big Three Detroit brands "are coming around -- they want to improve," he says, but adds that there's a problem: "The top guys are not necessarily making any mistakes."

 

Thanks good article. It's nice to see that Acura is not only above average for luxury cars, but also that it's much better than Audi. This is odd since it seems that VW does better than Audi, yet Acura has about the same residual as VW.

 

I've had VW's and my friends have Audi's. One had a TT and the other an A4. Don't keep ANY VW/Audi once they go out of warranty!!!!!!!!

I am very happy with Acura...for now!!

 

if you're keeping a car for 10 years, and putting 12-15k a year on it, don't sweat the resale. you got your money's worth and should just keep it til it dies at that point. cars are worth more to you than they are to others when they hit that 150-200k mark

though, we sold our 93 camry with 202,000 miles on it for $2,000

i sold a 91 nissan sentra with NOTHING (no power steering, manual transmission, POS) for $1,100 with around 140,000 miles on it. we shoulda kept the nissan and just ran it into the ground for back and forth driving, but the car sucked, no power steering and no AC is brutal.

 

Part of Acura's resale ranking includes the old RL, which was a resale dog, the NSX (which sold for $15k off MSRP when new), and the '99 to '03 Cl/TL which had auto tranny problems and have had resulting reduced resale values.

I would expect the TSX to have really good resale because it's fairly priced to begin with and relatively limited production numbers compared to the TL or the MDX.

Just look at Integras and RSXs, those hold their values really well.

 

If you want to put a smile on your face go on ebaymotors.com and look at the fact that only 9 TSXs are for sale (including damaged ones) but there's an 04 with 30K+ miles on it selling for over $25,000. I've never seen a car keep it's value like the TSX. If they had ratings specifically for the TSX based on what consumers are paying it would be much higher than it is. My

 

ebay buyers are so stupid sometimes. why would ANYONE buy an 04 with 30k for $25k???????? how is that even remotely possible. i hope there's mods on that car!

 

Perhaps they're betting on the fact that because the car is rare someone would be willing to pay that much to get their hands on it. Supply and demand. And even though they may be stupid it doesn't change the fact that the money's being shelled out for it.

 

the asking price for a 2004 silver TSX with no navi and 100k miles on it is 16,950. that makes me feel good. i'd gladly sell my 2006 TSX with navi at 100k miles (hopefully not that many in 3 years) for 10k below my purchase price, which, including tax, would mean i'd sell for around 20K. that'd be an awesome price.

 

i think i've decided i'll sell my car on ebay when i do it.

maybe i'll sell a picture of the car first. like the guy did with the xbox 360. he got $400 or something for a picture of an xbox 360. i love ebay.

sorry for the thread hijack.

anyways.....point is....ebay is a good place to sell stuff, including cars!