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Acura resale value exceeded by Infiniti?

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Old 03-17-2005, 05:19 PM
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Acura resale value exceeded by Infiniti?

saw somewhere the residual for Acura TL after 39month lease is 49%, but infiniti M35 is 56%.

So Honda product doesn't hold their value as well as they did before?

I went to a infiniti dealer yesterday to see the new M and had a crush on it.

Its so muscular and elegant at the same time. Interior is much better than A6 or 530i. Got a lease quote on a M35x with Journey package ( MSRP $46000 )

39 month: $684
42 month: $672, includes 9% PA lease tax, nothing up front.

I guess it is not bad a deal.......
Old 03-17-2005, 05:25 PM
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you're comparing cars that are in two totally different classes... try comparing the TL with a G35
Old 03-17-2005, 05:27 PM
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when I leased my 03 TL , they told me the residual after 39 month is 56%, so it dropped for the 04/05 because of the crappy build quality?
Old 03-17-2005, 05:30 PM
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feel like i responded to a similiar thread but anyways...

the m35 is a nice car, but you should not compare it to the TL. not in the same class as stated above. for that price, i would get german technology. i love my TL because everything comes standard. compare to other cars, i would have to spend thousands more. but everyone has their own opinions.
Old 03-17-2005, 05:58 PM
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Originally Posted by gainful
when I leased my 03 TL , they told me the residual after 39 month is 56%, so it dropped for the 04/05 because of the crappy build quality?
Yes, that's EXACTLY it. Have you decided on what to buy yet?
Old 03-17-2005, 06:00 PM
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When I was looking at the TL and G35 coupe, both leases had a 50% residual after four years/15,000 miles.
Old 03-17-2005, 06:09 PM
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Poocha, after reading all the problems and test drove the 05 TL, i am leaning towards the M35 instead of the TL. I am looking for a "base" M35 so that I can pay $40k instead of $50k for a M with all sort of tech shits.
Old 03-17-2005, 06:18 PM
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If Acura relocates their production back to Japan the build quality will go way up and the resale will follow. What you are seeing is American-based production finally catching up with the brand. My '89 Acura Legend Coupe had a $35K sticker and was of higher quality than my '04 TL. That's a pathetic statement to have to make.
Old 03-17-2005, 06:38 PM
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^ lol....
Old 03-17-2005, 06:49 PM
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Originally Posted by mrjoshua
If Acura relocates their production back to Japan the build quality will go way up and the resale will follow. What you are seeing is American-based production finally catching up with the brand. My '89 Acura Legend Coupe had a $35K sticker and was of higher quality than my '04 TL. That's a pathetic statement to have to make.

go to an infiniti forum, say freshalloy.com and see all the complaints about Infiniti's cars.... forums are to discuss problems people have with their cars because its a common place to get help for those sort of things. Can you imagine how boring it would be to see threads that say, "OMG, guess what guys, I drove my car to work and NOTHING went wrong!" or "my CD player works this car rules?!?!?!" I mean be realistic. You will have the same types of problems on an Infiniti, or an Audi, or a BMW, or a Merc, or any other car, why? NO CAR IS PERFECT!!! if you think one is, you need to get a reality check. Japanese quality surpassing American quality is a story of the 80s. Honda's Ohio factory is one of THE BEST rated factories in quality in the world. And in overall quality Acura beats Infiniti.
Old 03-17-2005, 07:48 PM
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We traded in our 2004 MDX and were amazed at what we got. Details - 6 mos old, 17,800 miles, NAVI, Touring, not a scratch. We paid $37,800 in March '04. Trade-in was 33,800. Also factor in the tax credit of $2,750 and there was no way we could have sold this ourselves for $36k.

Oh we traded it for an FX35

Acura's hold there value very well
Old 03-17-2005, 09:43 PM
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Originally Posted by cTLgo
go to an infiniti forum, say freshalloy.com and see all the complaints about Infiniti's cars.... forums are to discuss problems people have with their cars because its a common place to get help for those sort of things. Can you imagine how boring it would be to see threads that say, "OMG, guess what guys, I drove my car to work and NOTHING went wrong!" or "my CD player works this car rules?!?!?!" I mean be realistic. You will have the same types of problems on an Infiniti, or an Audi, or a BMW, or a Merc, or any other car, why? NO CAR IS PERFECT!!! if you think one is, you need to get a reality check. Japanese quality surpassing American quality is a story of the 80s. Honda's Ohio factory is one of THE BEST rated factories in quality in the world. And in overall quality Acura beats Infiniti.
Who mentioned Infiniti? Why is it that when significant issues are brought up about a brand new vehicle that is marketed in the 'luxury' segment of the industry it's construed as inherently negative?

No car is perfect. Well, the LS400 is probably the closest thing to perfection that has ever been brought out in the automotive world, but that's another story. I'd like to see documentation on Honda's Ohio factory being so highly rated. That's a rather relative statement otherwise, kind of like JD Powers 'initial quality' ratings, which are a joke. Any manufacturer can make a vehicle that doesn't fall apart in the first year. It's 3+ years that counts.

A few years ago Acura did beat out Infiniti in overall quality, but I'm not sure that this is the case any longer. What I will give you is that the cost advantage Acura holds is still there, and that's one of the primary reasons I bought the car.
Old 03-17-2005, 11:41 PM
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Originally Posted by cTLgo
go to an infiniti forum, say freshalloy.com and see all the complaints about Infiniti's cars.... forums are to discuss problems people have with their cars because its a common place to get help for those sort of things. Can you imagine how boring it would be to see threads that say, "OMG, guess what guys, I drove my car to work and NOTHING went wrong!" or "my CD player works this car rules?!?!?!" I mean be realistic. You will have the same types of problems on an Infiniti, or an Audi, or a BMW, or a Merc, or any other car, why? NO CAR IS PERFECT!!! if you think one is, you need to get a reality check. Japanese quality surpassing American quality is a story of the 80s. Honda's Ohio factory is one of THE BEST rated factories in quality in the world. And in overall quality Acura beats Infiniti.
In objective measures, Infiniti consistently ranks second to Lexus in terms of overall reliability and quality (per JD Powers). I've been a regular member of both the TL forum and G35 forums and I can honestly say that there have been more quality complaints on this forum than the G35 forum. If you check consumer reports, the G35 rates higher in reliability than the TL. I believe Honda is easily more reliable than Nissan but Infiniti imports all its cars from one of the best factories in Japan and has an edge over Acura.
Old 03-17-2005, 11:46 PM
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Originally Posted by gainful
saw somewhere the residual for Acura TL after 39month lease is 49%, but infiniti M35 is 56%.

So Honda product doesn't hold their value as well as they did before?

I went to a infiniti dealer yesterday to see the new M and had a crush on it.

Its so muscular and elegant at the same time. Interior is much better than A6 or 530i. Got a lease quote on a M35x with Journey package ( MSRP $46000 )

39 month: $684
42 month: $672, includes 9% PA lease tax, nothing up front.

I guess it is not bad a deal.......
That's NOTHING but a marketing angle. The old M35 sold SOOOO poorly that they had to do SOMETHING to give the new M appear to be a better deal. The ACTUAL street values/resale on Inifity's is a fraction of the resale on the Acura's. Just do a search on a 2003 M35. You will see that after only 2 years, it is about 50% of the original. 56% residual after 39 months? Yea, RIGHT! Truth is that you can only get that deal from infinity, not from a third party leasing company. The underlying premise is that Inifity is trying to buy customers.
Old 03-17-2005, 11:56 PM
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Originally Posted by ndabunka
That's NOTHING but a marketing angle. The old M35 sold SOOOO poorly that they had to do SOMETHING to give the new M appear to be a better deal. The ACTUAL street values/resale on Inifity's is a fraction of the resale on the Acura's. Just do a search on a 2003 M35. You will see that after only 2 years, it is about 50% of the original. 56% residual after 39 months? Yea, RIGHT! Truth is that you can only get that deal from infinity, not from a third party leasing company. The underlying premise is that Inifity is trying to buy customers.
although it is true that the old M wold poorly it might not be the case with the new version. the previous model's value will be alot less because it is not popular. however the 2nd gen seems to be liked by many which might help it hold its value.
Old 03-17-2005, 11:58 PM
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Originally Posted by gainful
when I leased my 03 TL , they told me the residual after 39 month is 56%, so it dropped for the 04/05 because of the crappy build quality?
Residual value is a moving target just like interest rates and pricing. Also, be aware that the number that you read or hear about is an "average" which has minimal effect on an individual transaction even a lease.

Dealer, manufacturers and lenders play around with the residual based on factors other than what they think the car will be worth. They will all come up with a different number based on many factors. If your lease is based on 56% you still may have gotten screwed, depends on what the car is worth when the lease is up!
Old 03-18-2005, 02:25 PM
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nda, there was no M35 before the 2006 model.

MR1, you guys are really blinded by your enthusiasm towards TL.
Old 03-18-2005, 05:29 PM
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Originally Posted by gainful
nda, there was no M35 before the 2006 model.

MR1, you guys are really blinded by your enthusiasm towards TL.
Your right. Turns out it was marketed as an M45 rather than the 35. I guess the older one had a bigger engine? Seems odd if that's the case, but maybe. Looks like the KBB value for a used 2003 with 25K miles (which would be low) is around $27,500. For a car that was originally $49K, that's a pretty darn steep depreciation in only two years ($22,000 loss). Even though the 2006 LOOKS better than the 2003 and no doubt performs better, I can't see it getting a legitimate 56% residual. Infitiy's simply do NOT hold their value like the other premiere cars (Lexus, BMW, Merc). They actually don't hold up well to even the second teir players (like Acura) if you look at the history.
Old 03-18-2005, 05:38 PM
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Originally Posted by ndabunka
Your right. Turns out it was marketed as an M45 rather than the 35. I guess the older one had a bigger engine? Seems odd if that's the case, but maybe. Looks like the KBB value for a used 2003 with 25K miles (which would be low) is around $27,500. For a car that was originally $49K, that's a pretty darn steep depreciation in only two years ($22,000 loss). Even though the 2006 LOOKS better than the 2003 and no doubt performs better, I can't see it getting a legitimate 56% residual. Infitiy's simply do NOT hold their value like the other premiere cars (Lexus, BMW, Merc). They actually don't hold up well to even the second teir players (like Acura) if you look at the history.
You are comparing a failed transition model (2003 M45) to the new updated M35/M45. Sorry but have you seen the new M45 (0-60 in 5.3 seconds!)? It is a killer car and will compete extremely well with the new German models. The G35 is just as good as the TL in resale value (and more reliable to boot). Infiniti is the hot brand right now and resale will reflect it.
Old 03-18-2005, 05:50 PM
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I spoke with a former Infiniti salesman and he told me that the heavy depreciation their model line used to take had to do with an inability to differentiate the product line significantly enough from Nissan's line. The exception was the Q45, but its depreciation was hurt by the G20 (Altima), the I30 (Maxima) and the QX4 (Pathfinder). The G35 represented their rebirth as a premier luxury/performance car company serious about competing with BWM, Mercedes and Lexus. The G35 is holding its projected resale value and the M45 should reinforce this trend. However, Infiniti pushes sales by selling G35s to rental car fleets as they did with their I30/I35 line. This is one of the biggest reasons heavier depreciation sets in. Acura, to my knowledge, does not do this, but when I traded in my '01 TL its resale was $2K below what it was projected to be. The dealer even admitted that the TL's resale value had been somewhat of a disappointment.
Old 03-18-2005, 05:57 PM
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Originally Posted by gainful
saw somewhere the residual for Acura TL after 39month lease is 49%, but infiniti M35 is 56%.

So Honda product doesn't hold their value as well as they did before?

I went to a infiniti dealer yesterday to see the new M and had a crush on it.

Its so muscular and elegant at the same time. Interior is much better than A6 or 530i. Got a lease quote on a M35x with Journey package ( MSRP $46000 )

39 month: $684
42 month: $672, includes 9% PA lease tax, nothing up front.

I guess it is not bad a deal.......
So do you think lease residuals are based on actual projected resale value or supply/demand based on sales targets and projections? The residual is lower because Acura knows they can meet their sales targets on this car at the lower, more profitable rate. Don't be so naive. If you don't like the deal, find a better one!

If the Infiniti is such a good deal, why didn't you get it? Are you waiting for someone here to help you make up your mind, or trying to spread Infiniti flames in an Acura forum?
Old 03-18-2005, 05:59 PM
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Originally Posted by gainful
you guys are really blinded by your enthusiasm towards TL.
On this forum? Imagine that!
Old 03-18-2005, 06:10 PM
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Originally Posted by gainful
Poocha, after reading all the problems and test drove the 05 TL, i am leaning towards the M35 instead of the TL. I am looking for a "base" M35 so that I can pay $40k instead of $50k for a M with all sort of tech shits.
You'll regret not shelling out for the extras. Resale on a base model is much lower than a loaded one. Who wants a base model anyways?
Old 03-18-2005, 06:18 PM
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hmm.. i was originally gonna wait for the Infiniti Skyline GT-R, but I read in an article that Nissan might not have the funds to develop the Skyline. also Nissan has been having these great deals, such as no hassle invoice prices, 0% apr, high residuals.. it seemed like a desperate company, so i went with the TL..
Old 03-18-2005, 06:35 PM
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Originally Posted by cornelius
hmm.. i was originally gonna wait for the Infiniti Skyline GT-R, but I read in an article that Nissan might not have the funds to develop the Skyline. also Nissan has been having these great deals, such as no hassle invoice prices, 0% apr, high residuals.. it seemed like a desperate company, so i went with the TL..
Actually, Honda was much more hurt by the weakening of the US dollar than Nissan. Nissan has been extraordinarily successful in the last 4 years thanks to Carlos Ghosn (called the most powerful man in the Auto industry). They also boast the second highest profit margin of any auto manufacturer. They are far from being in trouble and recently took the #2 spot away from Honda in Japan.

BTW, why would you cross shop a GTR ($75k) to a TL ($35k)? If I were in the market for a GTR, I'd go cross shop a Porsche, Merc, etc...
Old 03-18-2005, 06:51 PM
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Originally Posted by EZZ
Actually, Honda was much more hurt by the weakening of the US dollar than Nissan. Nissan has been extraordinarily successful in the last 4 years thanks to Carlos Ghosn (called the most powerful man in the Auto industry). They also boast the second highest profit margin of any auto manufacturer. They are far from being in trouble and recently took the #2 spot away from Honda in Japan.

BTW, why would you cross shop a GTR ($75k) to a TL ($35k)? If I were in the market for a GTR, I'd go cross shop a Porsche, Merc, etc...
The TL is a great deal. The GTR.. Its one of those things that money couldnt buy.
Old 03-18-2005, 08:07 PM
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Originally Posted by gainful
nda, there was no M35 before the 2006 model.

MR1, you guys are really blinded by your enthusiasm towards TL.
What the heck are you talking about. My response was regarding risiduals, period. The information was not brand specific. You might want to read it again.
Old 03-18-2005, 09:44 PM
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Originally Posted by ndabunka
Your right. Turns out it was marketed as an M45 rather than the 35. I guess the older one had a bigger engine? Seems odd if that's the case, but maybe. Looks like the KBB value for a used 2003 with 25K miles (which would be low) is around $27,500. For a car that was originally $49K, that's a pretty darn steep depreciation in only two years ($22,000 loss). Even though the 2006 LOOKS better than the 2003 and no doubt performs better, I can't see it getting a legitimate 56% residual. Infitiy's simply do NOT hold their value like the other premiere cars (Lexus, BMW, Merc). They actually don't hold up well to even the second teir players (like Acura) if you look at the history.
I agree. Infiniti has awful resale as a whole. Its tiring seeing fanboys point that the G35 has decent resale. What about THE REST of the lineup. Its horrible. Period.

Originally Posted by mrjoshua
If Acura relocates their production back to Japan the build quality will go way up and the resale will follow. What you are seeing is American-based production finally catching up with the brand. My '89 Acura Legend Coupe had a $35K sticker and was of higher quality than my '04 TL. That's a pathetic statement to have to make.
Many here feel that way.
Old 03-18-2005, 10:09 PM
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Well I would say the acura resale sucks since the 2g has had all kinds of powrtrain issues and well the 3G as well oil jets etc.

So it is really hard to say what a car is worth before you go to trade. You will not know until it is time to trade it in ... I know people want to believe they got the best deal the best trade in...lol

Truth be told, many people on here are testing out their own 0-60 times... that plus rattles etc does not make the resale very good. I am talking about something with 10,000 miles on it. I am talking real world 3-4 year old used cars that have 45-60k miles. That's when you find out what the car is really worth.

But by then you might be on your 3rd set of tires and 3rd set of brakes... trust me acura might stand by the warranty when you are the owner of a car, but when you go to trade it in, they dealer has to sell it to an informed buyer about potential issues... which means... the resale is not as good as you might think it is or what edmunds or kelly tells you...
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