Are the dealerships killing my resale value???
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Are the dealerships killing my resale value???
Everytime I see ads in the paper for new trucks I see major discounts from Ford all the time, which is great if your looking for a new truck but not so good if you just recently bought one. Is it me, or is this the reason for the bad resale value on our trucks? I see people trying to sell their newer truck on the autotraders for a big loss, but it is still cheaper(sometimes) to buy a new one at the dealerships, with all their incentives(cash back, major discounts, etc). It is definately not quality or the product itself. Is it just me, or are these discounts killing us with resale????
Sorry if this has been discussed. I did do a search first
Sorry if this has been discussed. I did do a search first
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Joined: Dec 2001
Posts: 752
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From: North of Dallas, South of Frisco
And, even if it wasn't, the dealers are gonna tell youit did...
Ford Family pricing is one of the reasons I only got $21,000 from Acura for my 2003 Expy when I traded it in Feb 2006 (28 months old). Surprisingly, we got $12,000 (At Ford) for our 2001 SuperCrew, and it was 56 months old.
So, after 5 years, it was still worth 41% of it's MSRP ($29,000), and 50% of what we paid for it ($23,995).
My 2003 ($43,395) was worth a little less than 50% of it's MSRP in 28 months, and 61% of what I paid for it ($34,000). Whereas my 1999 Supercab ($26,894) was worth only $16,000 after 18 months, a loss of 41% of its value in 18 months.
Part of the problem is, Ford is OVERPRICING their vehicles, and their rapidly depreciating to their true value (In most cases). For some of us (Who negotiate) we don't get screwed as badly, but for the sap that comes in, writes a check for MSRP, and leave- he or she ends up taking a bath on resale value, especially if you trade vehicles every 2-3 years. You know they're over priced because they wouldn't cut $10,000 off an Expedition, and sell it to you, if they weren't STILL making a profit. The problem is, for an 2007 Expedition at $46,000, you are in the price range of some far nicer vehicles, and people take their money elsewhere, so to keep vechicles moving, even at a discount, they are discounted as much as possible...
Vehicles in the $46,000 Price Range
Just to name a few...
Talk about the fleecing of America: I went to a local Cadillac Dealership, thinking I could slide out of this MDX and into a 2006 Escalade (Since the 2007's are out). Now, the MSRP on the 2006 Escalade is circa $51,000 (Before any discounts, and surely- they have discounts- right?)
Apparently, the Escalade is such a hot seller, there are no discounts, and not only that, this dealership did not have a single 2006 Escalade on the lot that was MSRP'd under $85,000.00.
You read that right, Eighty-Five THOUSAND dollars. And for what? They had 20 - 24" rims on them on the lot, Brembo brake package, and a few extra do dads. Maybe $4,000 in add-ons, and they turned that into a $34,000 mark-up.
I don't know about you guys, but if they day comes that I spend $85,000 on a vehicle, it's going to have S550 or 750 Li on the trunk. It sure as hell won't be a Ford, Chevy or Dodge (Unless I get a Viper, that is...).
Ford Family pricing is one of the reasons I only got $21,000 from Acura for my 2003 Expy when I traded it in Feb 2006 (28 months old). Surprisingly, we got $12,000 (At Ford) for our 2001 SuperCrew, and it was 56 months old.
So, after 5 years, it was still worth 41% of it's MSRP ($29,000), and 50% of what we paid for it ($23,995).
My 2003 ($43,395) was worth a little less than 50% of it's MSRP in 28 months, and 61% of what I paid for it ($34,000). Whereas my 1999 Supercab ($26,894) was worth only $16,000 after 18 months, a loss of 41% of its value in 18 months.
Part of the problem is, Ford is OVERPRICING their vehicles, and their rapidly depreciating to their true value (In most cases). For some of us (Who negotiate) we don't get screwed as badly, but for the sap that comes in, writes a check for MSRP, and leave- he or she ends up taking a bath on resale value, especially if you trade vehicles every 2-3 years. You know they're over priced because they wouldn't cut $10,000 off an Expedition, and sell it to you, if they weren't STILL making a profit. The problem is, for an 2007 Expedition at $46,000, you are in the price range of some far nicer vehicles, and people take their money elsewhere, so to keep vechicles moving, even at a discount, they are discounted as much as possible...
Vehicles in the $46,000 Price Range
- Lexus GX 470
- Infiniti FX45
- Infiniti M35/45
- Infiniti QX56
- Lexus GS 350/430
- Mercedes E350
- BMW 525/535
- Acura RL
- Acura MDX
- Toyota Sequoia Limited
- Toyota LandCruiser (OK, you'll need a few more G's)
- Audi A6
- Audi Q7
- Chevy Corvette
- Porsche Cayenne (Yes, a Porsche, starting at $43,000)
Just to name a few...
Talk about the fleecing of America: I went to a local Cadillac Dealership, thinking I could slide out of this MDX and into a 2006 Escalade (Since the 2007's are out). Now, the MSRP on the 2006 Escalade is circa $51,000 (Before any discounts, and surely- they have discounts- right?)
Apparently, the Escalade is such a hot seller, there are no discounts, and not only that, this dealership did not have a single 2006 Escalade on the lot that was MSRP'd under $85,000.00.
You read that right, Eighty-Five THOUSAND dollars. And for what? They had 20 - 24" rims on them on the lot, Brembo brake package, and a few extra do dads. Maybe $4,000 in add-ons, and they turned that into a $34,000 mark-up.
I don't know about you guys, but if they day comes that I spend $85,000 on a vehicle, it's going to have S550 or 750 Li on the trunk. It sure as hell won't be a Ford, Chevy or Dodge (Unless I get a Viper, that is...).
Last edited by Bighersh; Dec 18, 2006 at 01:57 PM.
Senior Member
Joined: Mar 2002
Posts: 4,867
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From: NH
FOMOCO promotes it's dealers to screw it's customers, FOMOCO believes it's great if a dealer can bend you over and get everything they can, it's a fact...
Why do I know it's a fact because FOMOCO has done NOTHING to stop it. Look at the GT500 where most dealers mark it up $10k plus. FOMOCO just sits back and laughs about how stupid it's customers are and how smart their dealers are for screwing them over and over...
Why do I know it's a fact because FOMOCO has done NOTHING to stop it. Look at the GT500 where most dealers mark it up $10k plus. FOMOCO just sits back and laughs about how stupid it's customers are and how smart their dealers are for screwing them over and over...
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Joined: Sep 2005
Posts: 2,622
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From: San Diego
Originally Posted by 01 XLT Sport
FOMOCO promotes it's dealers to screw it's customers, FOMOCO believes it's great if a dealer can bend you over and get everything they can, it's a fact...
Why do I know it's a fact because FOMOCO has done NOTHING to stop it. Look at the GT500 where most dealers mark it up $10k plus. FOMOCO just sits back and laughs about how stupid it's customers are and how smart their dealers are for screwing them over and over...
Why do I know it's a fact because FOMOCO has done NOTHING to stop it. Look at the GT500 where most dealers mark it up $10k plus. FOMOCO just sits back and laughs about how stupid it's customers are and how smart their dealers are for screwing them over and over...
It's not a FoMoCo thing either, BMW does it on just about any new car....and Mercedes. They are supposed to be ultra-nice and treat you with class there, right? Toyota did it with TACOMAS when the double cab was new.
Nothing wrong with markup on rare cars.
You people are so whiny about markups and resale. It's not like it is anything new, do your research FIRST.
If you don't want to own a vehicle that will likely lose a substantial amount of its value after you purchase it, don't. I for one was fully aware that my truck wouldn't hold it's value like a Toyota, but I didn't buy it to sell it.
