Resale value - Will we see a disaster?

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Quark

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As we see these overly inflated prices on used cars and even new cars where dealer ask for thousands over MSRP I'm seriously wondering what it does mean for the resale value and appreciation down the road.

What do you guys think?

1. Which Trim Level (or even what specific features) will help to hold the most value?
2. Will the market continue to be crazy and given that fact the resale values in line with the craziness? Meaning we will still get more for our cars in a few years than usual? Or will we have to take very big hits, even more than usual?
3. Will the Diesel in particular hold its value and be stable? Or will the 6.2 be much more wanted since it's one of the last naturally aspirated big V8 engines?

Thoughts? Assumptions?
Never order a vehicle with resale in mind, that $4,000 option will be worth 50% what you paid for it along with the rest of the vehicle. That stripped down version will return better.
 

firsttimetahoe

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Never order a vehicle with resale in mind, that $4,000 option will be worth 50% what you paid for it along with the rest of the vehicle. That stripped down version will return better.
This guy sounds like he should
Just be leasing
 

Polo08816

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The wholesale auction price for these vehicles are dropping on Mannheim. I wouldn't want to be a dealer carrying used inventory at this point.
 

GoHeels

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The resale crowd crack me up. Yes, resale is worth considering but should not be the deciding factor.

I'm a frequent visitor over on a boat forum. Been a few years, but some mega rich ordered a boat with every single color option they offered, interior & exterior. It was appropriately nick named "Skittles". Think he gave a crap about resale or just got what he wanted? Point being... get what you want as long as you can afford it.
 

Stbentoak

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This sounds like Dave Ramsey talking with his "debt is bad" approach. No it isn't. People definitely overextend themselves by only considering the monthly payment. But saying financing is bad and most pay with cash is just wrong.

We financed (not for 84 months) but were given a rate of 2.02%. I'll take that rate all day every day for as long as its offered. I can invest my money elsewhere and make more money than I'm paying in interest.
Well that sounds great except cash and bonds are paying next to zero and market volatility is a given for the next year min. We are only one nuke away from the market dropping 25% min. Don't think it can't happen.
Could I make more? Possibly..could I lose more? Possibly to Probably..
And you don't know what your situation will be 5-6 years into a stone around your neck.
With no loan I'm free to buy and sell at will, and if something takes a dump I have a relatively new vehicle in the garage eating no hay.
Mostly the people who don't like Dave Ramsey are the ones who don't have the discipline to put your ducks in a logical financial row like he does..
And I was doing it long before he existed...
 

GoHeels

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Correct. And in 3-4 years when the time comes when your monthly finance payment is high relative you what your car value depreciates to you should pay off your loan

I'm not so sure I agree with this. To me, it all comes down to where the cash is most valuable. On a 0% loan, I'm a firm believe you are not getting a penny of my money until its due regardless of the value of the asset in my possession. You gain nothing by paying it off early other than the satisfaction of being debt free which admittedly is a good feeling.

The same applies to low interest rates. $70k loan at 2% for 84 months would cost you about $5100 in interest. By year 3, you will owe approx $40k in principal and $2k in interest. Regardless what the vehicle is worth, if can make more than $2k over the next 4 years with $40k cash, you need to invest $40k.
 

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