19th Jan 2009, 10:58
My purchasing a import vehicle every ten years I can assure you is not hurting the economy at all. I don't want to put my money into the failing American auto industry.
20th Jan 2009, 19:58
"Domestics have lower resale value than imports"
This myth seems to never die. And it IS a myth. I have ran depreciation figures for friends of mine who were searching for good values in a new car. Domestics ALWAYS come out on top over a 3-4 year period. A very good example is a recent case I ran for a friend looking for a compact. The price of a Honda Civic was $5000 MORE than an identically equipped Ford Focus. After three years it would be worth $2000 more. In other words, a net LOSS of $3000. My friend wisely bought the Focus and made a $3000 profit right off the bat. If you pay $5000 MORE for a vehicle and sell it for only $2000 more, you have LOST $3000. Do the math.
I recently bought my wife a 3-year old Ford Fusion. It was priced $1000 HIGHER than a comparably equipped 3-year-old Camry, and considering the Camry's horrible reliability, WELL WORTH IT. The best returns I've ever gotten were on domestics. One 5-year-old domestic truck was sold for 92% of its purchase price. Try that with ANY import.
21st Jan 2009, 23:58
"One 5-year-old domestic truck was sold for 92% of its purchase price. Try that with ANY import."
Trucks are almost the only domestic vehicle besides SUVs and certain roadsters that hold their value. It is a known fact domestics depreciate MUCH faster than imports. My uncle paid $49,000 for his Cadillac DTS in 2006, he tried to trade it in in 2008 and was told the trade in value was $24,000. You can imagine what he told the dealer. My mother paid $23,000 for her 2004 Honda Accord new. Trade in in 2008 was $14,500. It is paid off and could nearly pay off a 2009 car if she wanted.
22nd Jan 2009, 11:07
Kelly Blue Book trade-in on a fully loaded 2004 Accord EX with moon roof, low miles and perfect condition is $11,000. In other words, if you'd bought a 2004 Ford Taurus similarly equipped you would have actually come out far ahead due to its much lower purchase price. You HAVE to factor in a car's purchase price in order to determine whether you made a wise business decision. This myth just goes on and on...
22nd Jan 2009, 12:57
"Domestics have lower resale value than imports"
This is not a myth, but a generality. You can find examples of the reverse being true, but the GENERAL TREND is that imports have higher resale.
Personal experience #1: Recently bought a 2002 Ford Windstar for $5k when the original owner paid $35k. Odyssey's in 2002 were comparable in price to the Windstar are currently worth $10-12k.
Personal experience #2: Bought a 2005 Toyota Rav4, which sold for similar pricing as the Ford Escape. The Rav4 is currently worth about $5k more than an Escape.
Personal experience #3: My father-in-law's 2007 Toyota Matrix was less expensive than the idential Vibe to purchase, and is currently worth $17k versus the $15k Vibe. It doesn't make sense when they are identical vehicles.
The GENERAL TREND is that if you are buying new, go with imports, if you are buying used, the domestic prices are too good to pass up. Anyone can relate stories of "One 5-year-old domestic truck was sold for 92% of its purchase price." but it is not the norm.
22nd Jan 2009, 16:49
"Trucks are almost the only domestic vehicle besides SUVs and certain roadsters that hold there (sic) value"
SUV's HOLD THEIR VALUE??? This statement in itself makes anything else in this comment a bit suspect. All SUV's drop in value like a brick.
22nd Jan 2009, 21:46
2002 Acura (Honda) TL Type S black automatic bought new $34,000, sold 4 years later with multiple transmissions replacements with 40,000 miles reported, all on CarFax sold for $10,000. My worst ever new car purchase.
23rd Jan 2009, 12:37
Thank you, S/A. If their value drops like a brick that's even more reason for me NOT to make a domestic purchase. Thank you for backing my argument.
23rd Jan 2009, 16:32
12:35 even if it were one replacement and even under warranty... Carfax would show up and yes diminished value. In spite of only 40,000 miles and maintained by dealer since new with middle age light footed driver. There's no other way to see the poor resale...poor. Car fax kills you at time of sale if the car has common issues such as the large qty of bad Honda/Acura TL transmissions.
24th Jan 2009, 05:24
I've had domestic musclecars while briefly parked that had notes placed under the wiper asking if I would sell for many times the original purchase price. Ever watch Barrett Jackson?
As far as strictly money, a nice truck or SUV can pay for themselves on applications or higher quality of life as well. A nice one may cost a lot but the riding comfort, each can tow, long trips with family. Being cheap and paying on a vehicle 4 years or so being beat to death in a cramped, overevved, uncomfortable small car with 3 or 4 passengers takes away a lot on what you really are saving.
It amazes me how cheap people can be at the sacrifice of better drivability, ride and they will take a lousy import warranty. The short immediate satisfaction at the gas pump can quickly be eaten away with major mechanical repairs. I'd rather work a little harder and then have a great car to own and drive. I drive a lot and actually have a passion for cars, ride, handling and am not a bean counter squeezing out pennies at the sacrifice of quality of life owning a truly miserable riding vehicle.
If I need a vehicle in my 100,000 mile warranty, I will take a new loaner car or the free shuttle into work. Sure beats driving to pick up a spouse with an out of warranty import with 51,000 miles on it that broke down again.
19th Jan 2009, 10:56
Domestics have lower resale value than imports. Those currently on the market now have not been on the market long enough for me to consider spending money on. I know the long-standing models/nameplates from import brands have reputations for quality, dependability.
The Malibu is beautiful but what will long-term reliability and resale value look like in four years.
Ford Fusion receives good ratings but has bland styling.
Dodge Avenger and Chrysler Sebring receive good ratings, but use cheap build quality, materials.
Honda Accord has the highest numbers with CR at 79 pts.
Camry is so-so but a model I'd have to consider before domestic brands.
Nissan Altima receives some not so bad scores and people I know who owned them kept them a long time and loved them.
I shop for the long-haul. If this weren't the case, I'd buy domestic. Since I do not plan to own another car for several years after the purchase, I do plenty of research before making a final decision.