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Do you really?
A dealer said he is selling a 2012 Toyota Corolla for $15K (500KM)
A 2013 Toyota Corolla is going for $16K
So basically, after waiting a year, you saved $1k
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May 17th, 2013 05:07 PM #1
Do you really lose 25% of the car value instantly?
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May 17th, 2013 05:25 PM #2
Is the 500km model actually used? Or has it just acquired that from being transported from one dealer to the next?
The 2013 Corollas have lots of incentives on them too, as the 2014 refresh is on the horizon, which is going to change the picture too. Reply With Quote
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May 17th, 2013 05:38 PM #3
According to Consumer Reports, the average new car loses 47% of it's value in the first 3 years of ownership.
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May 17th, 2013 05:40 PM #4
#1 don't buy Corolla.
#2 that's what the stealer is selling you the car for, not what he bought it for and not what you'd get for it if you owned the car and were selling it. Fact is that dealer is probably not going to get that much for it, or if they do, they're selling it to someone unsuspecting/oblivious which there are plenty of in the marketplace (not everyone is an RFDer).
No you don't lose "25%" exactly everytime, all the time. You're gonna lose several thousand at least though, "as soon as you drive it off the lot". That is, if you bought a brand new car one day and had to sell it within a few months afterwards (for whatever reason) then yeah you're going to take a bit of a hit. Not going to be 25% necessarily but a lot more than you would probably like.
Think of it this way, if you buy a car today that costs $20k after tax, use it for a while put a few thousand kms on it and then have to sell it again, who is going to pay you near to the new price when they can just go buy a new one for nearly the same. Would you buy that car? Cutting the price by a thousand or two really isn't going to do much for you in terms of getting the car sold. You're gonna have to "swallow" costs like frieght and PDI and probably give a few thousand in discount before anyone will take any interest. Sell it to a stealer and then you're probably going to lose more than 25%, lol. Reply With Quote
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May 17th, 2013 05:42 PM #5Look at it this way. I have a 2012 Corolla for $15k. I have a 2013 Corolla for $15k. What would you pick? The answer is obvious. Unless there are discounts, no one will buy old stock. Common sense.
Originally Posted by techcrium
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May 17th, 2013 05:42 PM #6Deal Addict
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No you really don't lose that much(25%) Originally Posted by techcrium
The faulty perception between cost differences is people always compare the price they just paid (which included frt/pdi/fees/HST) to adverts they see of one year olds in newsprint.
What a dealer asks for is not always what it sells for so don't even use that as any gauge whatsoever. Originally Posted by techcrium
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May 17th, 2013 06:03 PM #7
OP, if you believe in that logic or crack that the dealer is selling you, you might as well buy brand new.
The moment you drive your brand new car, I mean 2013/2014 model off the dealer's property, and drive back in and say I change my mind, can I get a camry instead? Guess what? They're not gonna give you back what you paid for. You just took a hit of at least $3000-5000. Dealers are called the stealership for a reason. They are not your best friends, although they want you to believe them to be. They do not always have your best interest in mind. They are a business to sell you a car or service. Unless its a lemon, they will not refund you the value of your purchase.
edit:
when you trade in your car, they will give you lower than black book value as they have to resell that to make money to profit as it costs them money to bring it back to certified condition or what not. Reply With Quote
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May 17th, 2013 06:11 PM #8The only reason it "depreciates" according to people who claim it is because they use the wholesale value for the comparison (i.e., $20000 new, but worth $16000 the moment you drive off the lot). This applies to both new vehicles and used vehicles. Originally Posted by techcrium
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May 17th, 2013 06:33 PM #9
What you will lose right off the bat will be pdi/freight/admin fee/AC tax etc...
That will amount to $2000 easily. Reply With Quote
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May 17th, 2013 06:39 PM #10
You lose that much only if you sell it back to the dealer, otherwise, I don't believe so.
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May 17th, 2013 06:42 PM #11
Depends what you pay for the car v.s fair market value, had a co-worker who spent 32,000+ on a ford focus (lol) currently worth maybe half that.
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May 17th, 2013 06:55 PM #12
Would you pay full price for a preowned corolla of any km?
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May 17th, 2013 08:44 PM #13While I agree there are some slimeball dealers out there, I hardly see how this scenario makes them a stealership. Originally Posted by maniacshopper
If you, as a customer, walked onto a lot and there were 2 identical vehicles, except one had been previously titled and returned, and the other was brand new, which one would you choose? 10/10 people are going to take the brand new one. No one is going to take the previously titled 'returned' vehicle unless there is a good financial incentive. Someone is going to have to pay for that "financial incentive"/depreciation.
When I was looking for a CTS Coupe last year, I came across one with 264 miles on. Exactly what we wanted, and it was priced $3500 less than everyone else. I pulled the Carfax, looked at the GM VIS, and could find nothing wrong with the car. Dealership said the owner had bought it, then returned it for a sedan as the coupe was impractical. In the end I was still suspicious and stayed away; bought elsewhere.
As a customer, if I choose to return a car, it's reasonable that I have to pay for the depreciation. If you think the dealer is going to give you $5000 less than what you paid for and then sell it for full retail, you're crazy. Try selling a "brand new" car privately and see what you get._______________
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May 18th, 2013 04:42 PM #14
25% seems a little excessive. And are you sure the 2012 one is the same/similar as the 2013 one? The base model 2013 Corollas start at $16K, but which one is the dealer selling?
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May 18th, 2013 06:00 PM #15 Reply With Quote
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