considering resale value of cars

[Goggle]

hey

I'm maybe going to buy a new Hyundai Accent (standard, with options) for about 15500, hopefully lower if the dealer gives in tomorrow. She originally claimed 18,599 was the lowest she could go (imagine that). On the other hand, I've got my eye on a 98' BMW 540I for 19,500 and I'm positive I could drag it down in price too. It's nicer than the accent and only a bit more money, considering the numbers we're dealing with.

If I spring for the BMW I'll spend more on insurance and gas. On the other hand, won't it resale for a lot more if I take good care of it? I only drive for about 20 minutes per day so I wouldn't be running either car into the ground.

It's not even the BMW that's got me thinking though. I almost feel like I'd be better off to spring for something a hell of a lot more classy than these cars and have something with more equity in the long run. If I take great care of a nice car, no matter what, it'll be more valuable and useful to me than a hyundai accent. Am I right?

It's sort of like when you're buying a house. It's a terrible idea to invest in something that you won't get anything out of down the line. While cars go down in value and property goes up, I still feel like getting a car that goes down in value slower is a better investment.

An 07' hyundai accent will probably be worth 9,500 or something in 3 years. I'm sure of it. Cars like that are worth nothing so fast.

Can any of you guys help me out here? I'm new to this car thing and I just don't want to make any crazy moves.

edit:

I find things like this: SAAB car (http://www.canadatrader.com/result/detailinfo.aspx?ID=21724082&pgno=1&srt=1)

And I wonder, like if it's in good running condition, why would I get an accent for the same price? Isn't that a horrible idea? I'm not sure sure about SAAB, their cars are sketchy, but then so are hyundais. I wish I had some cash to get this mercedes model I like but I think it's over 100 grand. I totally don't have 100 grand.

[dj_rice]

Yeah BMW is the right way to go, stay away from those Hyundais....you'll have a hard time selling it if you do cause demand for those..I doubt is very high and also u lose tons of resale value

[Goggle]

I'm glad you agree, as the minutes go by I just want to look for a better car all together. What sorts of cars are known for good resale? Without going into the hundred thousand bracket?

[dj_rice]

Originally posted by Goggle
I'm glad you agree, as the minutes go by I just want to look for a better car all together. What sorts of cars are known for good resale? Without going into the hundred thousand bracket?


I say European cars

[Goggle]

I'm really into the Mercedes-Benz C230 Sedan and the BMW 3 series Sedan. Both with full options are around 45,000. That's a bit of money, but I'm going to keep researching and see if it would be worth my trouble.

The crazy thing is the options... Some of that stuff is totally foreign to me. Controlled sun roof? whaaaat, haha. The windows on my car don't even work properly.

If anyone has suggestions for european cars to look into, I'm ready for some names

[djayz]

why not go with a honda or toyota...great resale value and cheap on gas and parts

if you get a bmw it might go through a little more gas and have a good resale value but it also has expensive parts so maintaining it may be hard on the pocket

hyundai's are pretty good cars they have come a long way from what they used to be so dont underestimate them.

[s3v3n]

buying a new car is probably the worst financial investment ever... the second you drive off the lot, your cars value has dropped several grand.

imports tend to have better resale value. however, youve gotta remember that a 98 bmw is actually only a year shy of a decade old; thats why its the price of an accent. you will pay a lot more to maintain it too; older parts wear out and break, parts on a bmw are more expensive, and the is no warranty. you have to consider that a portion of that new cars cost is the warranty and the fact that you will spend next to nothing to maintain it over the next couple years.

that being said ... the 540i is one of my fav cars ... and, personally, i would buy it over an accent any day.

[tapout]

my uncles own car lots & they will never ever ever ever trade or buy a hyundai GARBAGE POS . HONDA,TOYOTA,VW, best cars for for every thing

[kaput]

.

[bigbadboss101]

How about an Echo or a Fit?

[Khyron]

Originally posted by tapout
my uncles own car lots & they will never ever ever ever trade or buy a hyundai GARBAGE POS . HONDA,TOYOTA,VW, best cars for for every thing

Yah they said the same thing about Hondas in the 80s, those worthless rustbuckets. I do believe Hyundai was #2 for initial quality/reliability next to Toyota this year, far ahead of Merc, BMW, VW, etc. Out of all the car brands, the Koreans have the best bang for the buck by far.

That said, perception is what drives resale. If you are thinking of selling it in the next 8 years, don't buy a new car. New cars ARE a loss, UNLESS you keep them and do not cave to emotions and trade in.

You definately don't sound like you are at that point so buy a good used car that you can flip if you change your tastes.

Khyron

[CalgarySupra]

dont buy Hyundai they are POS no matter what. they are not even Japanese. (Korean)


The 15 year old who got killed rear ended downtown was in a hyundai, he was in the back seat. Makes you wonder



One Hyundai turned into my rear right fender on my supra it written off the hyundai. This happen just behind walmart in the NE. i couldnt believe how cheaply built they are. while my panel was just dented in a bit.


Buy Volvo, Toyota, or a bmw 745li

[Khyron]

Again, guys like the above are the reason Hyundai is undervalued. They look at things 10+ years ago, and apply it to the current world.

http://www.automotive.com/2006/12/hyundai/elantra/safety/index.html

http://www.automotive.com/2006/12/toyota/corolla/safety/index.html

Toyota has Hyundai listed as their number 1 market threat, replacing GM for the first time in a looong time. Elantra and Sonata have been top performers for best buy picks in many car mags for the money you spend. And 10 year warranty in the States is just madness.

Btw pretty much any newer 2000+ car will be safer than older 90's and 80s vehicles.

Khyron

[Slashin_]

hyundai is moving up in the automotive industry...in a few years hyundai will be equal with honda and toyota no doubt.

As for the topic at had,i personally hate bmw.....you pay more for the car,pay more for parts,pay more to rent tools for special jobs....just to look cool? they have good resale,but so do japanses cars.

hyundai are decent cars now,was watchin some canadian driving show,hyundai had a new minivan out....the comment were they take that van for first choice hand down,because there price is right and quality is there. them pony days are over hyundai's r cool....

personal point go with an used honda

[Goggle]

Ideally I'd like to pick up a car and own it for around ten years, and have it be valuable around then. You know, around a time when I could drop it and start putting the returns towards a kid or a home.

Anyhow, the point of mentioning that I drive so little is that in a decade, I should only have like 60-80,000km on the vehicle. Shouldn't that improve it's value a lot?

I'd also like to have something half decent to drive. I've been test driving vehicles like mad, and there's something to be said for a nice luxury vehicle.

I was impressed by the Volksagen GTI today. Any ideas on how that car's value should hold up? My only problem with the GTI is that it hasn't got a lot of features. I was also impressed by a honda hybrid. It's really cheap, too. I don't know, I have a lot to learn!

[theken]

if you want alot of features on a vw, you would need the gti vr6, or go to an audi

[Khyron]

WTF - a VW GTI is loaded! What's it missing?!?

The rabbit is the best VW value, but that value is done by removing excessive options. Honda Fit looks excellent on paper, or via USA prices, but when you add some basic options like AC to the Fit you end up in 20+K country which is crazy expensive for what you get.

Almost no normal car is worth a lot 10 years later, even if you only have 100K. Consider any vehicle a depreciating asset. If your goal is to have money for a house etc, buy something decent and used for 5K and drive it into the ground, while putting the 500/month car payment into your new house fund.

Khyron

[FiveFreshFish]

Originally posted by Slashin_
As for the topic at had,i personally hate bmw.....you pay more for the car,pay more for parts,pay more to rent tools for special jobs....just to look cool? they have good resale,but so do japanses cars.

Drive one and it might change your mind. Don't hate on something you don't know.

[lint]

Originally posted by Goggle
Ideally I'd like to pick up a car and own it for around ten years, and have it be valuable around then. You know, around a time when I could drop it and start putting the returns towards a kid or a home.

Returns? What kind of returns are you expecting on a car? Or do you mean residual as in residual value?


Originally posted by Goggle
Anyhow, the point of mentioning that I drive so little is that in a decade, I should only have like 60-80,000km on the vehicle. Shouldn't that improve it's value a lot?

You can expect maybe 5-10% more than a similar vehicle with average mileage. It will still be a 10 yr old car and still isn't made of gold.

You'd be lucky to get 50% of the new vehicle cost in 5 years time.

from edmunds.com:
2006 residual (http://www.edmunds.com/reviews/list/top10/115129/article.html)
2005 residual (http://www.edmunds.com/reviews/list/top10/103629/article.html)

[Goggle]

I was wrong about the GTI, the salesmen I talked to was really bad at selling cars and he told me the one in their lot was fully loaded. He already knew I wasn't impressed enough to buy, so I'm not sure why he told me that. You'd think he'd try to get me to buy one with a 6 disc changer or something.

yeah, I've come to the conclusion that if I get a car, I should invest in something that I'll like and enjoy until it dies. Or a better example is that I should buy something that I expect to last the longest for its price.

After a bit of research I think a jetta wouldn't be a bad choice. As for investment, I'll get very little out of it but they seem to be a comfortable, durable, and attractive car. I don't know for sure but I'll have to keep researching.

Thanks for helping me see how useless cars are if you want to save a bit of money. They're essentially money holes. It's too bad... I'd like to have something decent, you know? But I'd rather not have it be only a luxury.

Is it a bad idea to buy new if you intend to keep the vehicle until the end of its life? For example, if I buy a TDI Jetta for 33000 and it lasts me 25 years, was it a bad investment? Or could I even expect it to last that long? I realize there'd be quite a few repairs in between. I'd do all repairs on my own when possible.

I take pretty good care of my belongings. I'm familiar with taking care of vehicles anyways, I was a heavy machinery operator and mechanic from age 17 to 20, I quit a few months ago. I'm pretty sure I could learn to take care of cars the same way.

I wish I knew so much more about cars still.

edit: One thing I should mention is that I wouldn't be dealing with interest on a purchase like the jetta. Does that make it more... Worth it? In any of your opinions

[djayz]

if your going to buy a new car and drive it for the life of the car i say thats the best choice you can make because you know what the car has been doing since day one and you know how it has been kept.

on another note any car new or used can have problems so even buying a new vehicle you might run into some major problems say 8 or so years down the road...

its all about what you want now and what you want to end up with in the future.

If its going to be your first or second car and just want to learn some things about a car mechanic wise i say buy a 5000 dollar honda toyota something reliable and just do your own maintainence and repairs then once you feel youve learned enough and are ready to move on...buy the car that youve been saving up for the whole time youve been driving the car you bought for 5000.

[pinoyhero]

Something else to think about is going private rather than through a dealer, you save not only the GST but their mark-up as well. IMO if you're going used just buy a car that still has warranty privately rather than going through a dealer.

[legendboy]

yes don't buy the hyundai if only for the reason you will be throwing most of your money down the drain in the next couple years.

if you finance it your car will never be worth what you owe until you have it almost paid off

[Khyron]

Originally posted by Goggle
Is it a bad idea to buy new if you intend to keep the vehicle until the end of its life? For example, if I buy a TDI Jetta for 33000 and it lasts me 25 years, was it a bad investment? Or could I even expect it to last that long? I realize there'd be quite a few repairs in between. I'd do all repairs on my own when possible.

In theory it's a good system, the problem is when you are young, things change. Will you have kids in the next 10 years? Constantly lusting after the newest models? Cars are often emotional purchases and people can be completely financially insane with their decisions.

I'd still advise to buy cheap used, because you sound too young to know what you want for the next 10+ years. That's not to say you can't but can you really say you'll still want car X a decade from now? That's a long time.

Khyron

[heavyD]

Originally posted by Slashin_
hyundai is moving up in the automotive industry...in a few years hyundai will be equal with honda and toyota no doubt.

Ha Ha. Funny stuff.:rofl:

You guys can eat up all the good press Hyundai has been receiving but those initial quality awards don't mean shit. It's the long term reliability that counts and Hyundai is still a bottom feeder with VW for long term reliability. A guy at work here had a new Accent and it was a POS with big chunks of paint flaking off the bumpers, dime store interior parts, & could barely start in the winter without being plugged in. If that's the shit that the Canadian Automotive journalists are fawning about then I would seriously advise not believing anything that they award.

[benyl]

Originally posted by CalgarySupra
dont buy Hyundai they are POS no matter what. they are not even Japanese. (Korean)


The 15 year old who got killed rear ended downtown was in a hyundai, he was in the back seat. Makes you wonder



One Hyundai turned into my rear right fender on my supra it written off the hyundai. This happen just behind walmart in the NE. i couldnt believe how cheaply built they are. while my panel was just dented in a bit.


Buy Volvo, Toyota, or a bmw 745li

omg, you can't be serious.

[rc2002]

Originally posted by djayz
why not go with a honda or toyota...great resale value and cheap on gas and parts


Yup, if I was budget concious, that's what I would go with. Can't really go wrong there. If you buy a car used for a good price you might even be able to sell it for the same price after a couple years of driving.



Originally posted by lint
You'd be lucky to get 50% of the new vehicle cost in 5 years time.


I'd say 50% is more like an average. If you make the right choice, you can maximize the residual value. I see extremely good market value on a lot of cars, for example ITR, 300ZX, 3 series BMW's, Civics, etc.



Originally posted by Khyron


In theory it's a good system, the problem is when you are young, things change. Will you have kids in the next 10 years? Constantly lusting after the newest models? Cars are often emotional purchases and people can be completely financially insane with their decisions.

I'd still advise to buy cheap used, because you sound too young to know what you want for the next 10+ years. That's not to say you can't but can you really say you'll still want car X a decade from now? That's a long time.

Khyron

That's very sound advice. I've been through about 7 vehicles in the last few years. Most of them I thought I'd keep until they died so I dumped money into them. But you'd be surprised how fast you'll change your mind when you see cars coming out with the new bells and whistles or when your life even slightly changes direction.



Originally posted by heavyD


Ha Ha. Funny stuff.:rofl:

You guys can eat up all the good press Hyundai has been receiving but those initial quality awards don't mean shit. It's the long term reliability that counts and Hyundai is still a bottom feeder with VW for long term reliability. A guy at work here had a new Accent and it was a POS with big chunks of paint flaking off the bumpers, dime store interior parts, & could barely start in the winter without being plugged in. If that's the shit that the Canadian Automotive journalists are fawning about then I would seriously advise not believing anything that they award.

:werd: Magazines are a load of crap. I don't believe anything that I read. Thing is, they can write anything they want. And a lot of times, the articles aren't totally objective. Some people are biased towards a certain manufacturer, or there's pressure put on them to make them write certain cars up in a positive light. The general public doesn't see Hyundai as a leading company, and I don't see that changing anytime in the near future. Just check out the autotrader and see what resale is on Hyundai's. Just as bad as domestics.

[slick2404]

www.edmunds.com

check out the reviews for the 01-04 Jettas....it changed my mind pretty quick. As for the newest Jetta's thier impressive, except maybe the chrome was a 'touch' too much...:confused: dont know what they were thinking.


Personally, I think Audis are the way to go for value, style and comfort. Check em out, you'll enjoy them

[Khyron]

"They've made incredible quality strides to the point that some models are up there and beyond where Toyota and others are in terms of quality," said industry analyst Jack Nerad, of auto researcher Kelley Blue Book. "I think their goal is to be more of a full-line manufacturer, and they look to companies like Toyota to be the role model for them.''

It's just funny because in the 80s all the rednecks were saying that Honda's were shit, and if you bought one you were a fool. Everyone knew someone that had a rusted out old Civic.

The point to saving money is to avoid the trends of the masses. Save 4-5 grand and buy a car that is only down (marginally) by old codgers perceptions. Anyone who follows the industry at all knows Hyundai is the one to watch. However, nothing is free and if you decide to sell the car, you will lose that 4-5 grand back on resale due to that same perception. It's been said that those who are worried about resale shouldn't be buying new anyway, or they can't afford the car in the first place.

Khyron

[alloroc]

Look into a late model 2004-2006 legacy

You have the safest car, great resale, options galore and awd.