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Debunking the myth of new car depreciation

5053 Views 13 Replies 9 Participants Last post by  Redlinez
I'm sure you ALL heard the "don't buy a new car! It loses so much value after you drive it off the lot" crap. I heard it from everyone. But then today I got a very interesting call :)

I bought a black ST without any options for 21k about a month ago. A guy from a local dealer (I traveled all the way to vegas to get mine, was well worth the trip) called me today saying they have a used orange ST at a tent sale. It has painted wheels and a moonroof. and SIX thousand miles. They are asking $25,401 for it!!! I almost died. A tent sale.... 6k miles... and that's almost how much you'd end up spending on a brand new one. What a freaking joke.

Made me feel a heck of a lot better about my purchase. I can probably turn this thing around for a profit right now! But I would never do that :) I love my baby too much. Anyways thought you'd all enjoy that. Have a good weekend!

here is the car listing for those interested -

If you want the sales guy (who honestly is a douchebag, but he said I get $100 if I sell it) his number is 801-687-5770 and his name is Doug
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Coming from a former car salesman, I hope you didn't think that the price a Dealership put on the window of that used FiST is any indication of the actually value of your or any of our cars... There is a huge difference between a Retail and a Private Party value. Kelley Blue Book does give you an idea, but in reality most dealers will use car auction sites to see how much similar models have recently sold for when making a trade offer, so your Trade Value ends up being thousands less than Private Party (which is thousands less than Retail). So a $26,000 ST3 FiST sells to the original owner, gets traded in 1 year later for probably $16,000, gets marked up by 40-50% to $24,000 and will be sold for $18-20...

But if any one of us tried to sell one of ours, we should expect to get out about 80-90% of the original purchase price from it, and none of us can get as much as a Dealer because of the perception that getting a used car from a Dealer translates in the car being properly serviced and cleaned (which in many cases, never happens). Dealerships can also offer extended warranties, which often makes them more revenue than the sale of the car itself (why do you think Certified Pre-Owned vehicles have become so popular?)
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