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Debunking the myth of new car depreciation

5057 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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The best way to buy a new car is with the fewest options you can get. The real depreciation is what they add on for the options. It's a joke. Just another reason I'm glad I have a 0 option oxford white FiST. I'm in the business and have had over 50 cars, and I'm 42. I've done it a few times.
If you buy cars to keep them, then by all means, get everything you think you would want. I don't keep any car more than two years usually, but I also like mine with just the basics. I'm not into spending $1900 for seats on a car that stickers for $22k. Really, none of the options made sense to me. $375 to paint my wheels and calipers a different color? $895 for adding navigation when I have it on my phone and it's satellite accurate? That's the great thing about having choices.
My choices were: white with 0 options (my favorite color anyway), blue with a roof (close 2nd, but they were $500 less on my truck), or others that had every single option. Those cars were $4000 more than mine. I would want those seats if I knew for sure I were autocrossing, but those seemed like a pain to fall in and climb out of on a daily driven basis for me. I did like how the seat kept my knee off the center console though.
On a lease, it definitely makes less difference in the payment.
Yea, I sold new/used cars from late 95 to summer of 98. Most dealerships I worked for would probably mark one up $3000-4500 over what they had in it, depending on year/make/model. I have actually traded cars 3 months after buying them and broke even, and I bought whatever new car at invoice minus rebates, so it wasn't the over allowance game. One of the keys is to buy when the car is really new and there's no book on it yet. Too many people buy into KBB. They don't buy or sell cars, so they're pretty much useless. The Black Book and Manheim auction reports are where real value numbers are derived. The fact that there aren't many of the FiST being sold might help on a trade in value though.
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