Depreciation after 4 months?

[Hendog]

Looking at a 2015 car which sells new for Slightly under $32k plus PDI and taxes brings it to about $36-37K.
Guy is leaving the country after only 4K km (2500 miles). What's it worth? He's looking for $ 30k.

[Rick Lee]

Not according to the guy on the Liberty Mutual commercials.

"How can my car depreciate before its first oil change?"

[wdfifteen]

I don't know about BC, but where I live (Ohio, USA) you have to pay sales tax again, so the taxes aren't relevant. What are you, as the second owner, giving up? Any warranties or anything?

[Hendog]

I would have to pay taxes too. I'm pretty sure the warranty transfers. Lots of details I would have to check; liens, claims etc. But before doing that due diligence, if it checks and comes to an offer then what is reasonable?

[wdfifteen]

Hendog, in this situation you don't want to pay what is reasonable unless you have to have the car right now. What do you mean by "sells for slightly under $32k?" Is that MSRP or actual selling price, or ?? I'd look at insurance replacement value as a good guide to what the pros think it is worth as a used car.

[Arizona_928]

The 30k is prolly more then what a dealer has offered for the car.

[Por_sha911]

First off, the car is 1 year old (2016 on the lot). As far as trade in value is concerned, you lose at least 20% the moment you drive a new car off the lot with 1 mile on it. The dealer has to make the car cheap enough to be used versus new since new has better finance rates, more warranty...
If you can buy a new 2016 for $32-34k then why buy used 2015 just to save $2 or 3k? The only exception to this would be a highly desirable limited availability car.

[Hendog]

OK, my bad. I priced a 2016 on line for MSRP which came to $31,650: so that was not a accurate comparrison.
More accurately, a new 2015 MSRP runs $31,700 less $2K cash incentive brings it to $29,700. The seller is already too high given I can get a zero mile car for $29,700 (plus freight, PDI, paper work��...)

[Arizona_928]

IMHO it's not worth it in that case. ^^

I was debating that when I bought my TDI. Buy a used same year with 20-30k miles for slightly cheaper then new. Still paying tax title dealer fees either way. Might even get some promotional 0% financing which would make it a no brainer in that case. Might even be able to bargain price a new one down enough. Either way too many variables without knowing what kind of auto you're looking at buying....

[Hendog]

The seller in this case is private. So my question remains; what is his 4K km car worth compared to a brand new one running $29,700?

[Hendog]

Originally Posted by Por_sha911

As far as trade in value is concerned, you lose at least 20% the moment you drive a new car off the lot with 1 mile on it.

Really? That much? This works in my favour...

[Steve Carlton]

If it's just a few months old (lost warranty), I'd say you should be buying it for maybe $27K or else what's the point? You could get a brand new one (probably) in the color you prefer (maybe) with options you prefer as well for a little more. If the car's a year old, then you've lost more warranty vs new. I'd be concerned the car hasn't been in an accident for sure, just to be careful.

[KFC911]

That insurance commercial is for idiots....as posted, the second you drive your "new" car off the lot, you're gonna take a pretty good hit....I haven't purchased new since I was in my 20s....

[recycled sixtie]

Yes Hendog be really careful. That is not enough of a discount off of the new price to justify the purchase. I am not an advocate of new car purchases but that amount of $$$ puts you in the high risk category. As the above says you are paying so much $$ you might as well buy new.

This seller says he is going overseas. Yes but is he really? You will have to do due diligence re clear title, accidents etc. Is the warranty transferable? Here in Alberta we don't pay taxes on private sales. In BC you do then?

Perhaps you don't want to state what make of car it is for fear of losing the car to somebody else ? I would be more detached and objective.
Guy

[red-beard]

Originally Posted by KC911

That insurance commercial is for idiots....as posted, the second you drive your "new" car off the lot, you're gonna take a pretty good hit....I haven't purchased new since I was in my 20s....

I'm not so sure these days. It depends on the value prop of the vehicle. I buy through the internet sales department at dealerships. Usually, it is a low fixed price. I shop many dealers in the area. The savings vs. MSRP can be substantial.

I purchased a 2010 Ford F250, diesel, 4WD, Lariat with most of the options for $42K. MSRP was $56K. I paid less than a similar F150. And with the accelerated depreciation, My "net" on the truck was $28K. A year later, I could have sold it used for more than I paid.

[Arizona_928]

Originally Posted by Hendog

The seller in this case is private. So my question remains; what is his 4K km car worth compared to a brand new one running $29,700?

Since you won't tell us what kind of car you're looking at buying.

A 4km car is worth whatever someone is willing to pay for it.

[Hendog]

A little research shows average depreciation right off the lot is 11%, and then 15% for each year thereafter.
Given I can get a brand new 2015 RAV4 AWD XLE with nav for $29,700, I would say this guys car is worth $22,468. That's wholesale.
It would be a starting point and somewhat of a low-ball to him. I'm in no rush. I'll go look at it and maybe explain my rationale to him on the pricing, which will not necessarily get him to release it at that price but only serve the next person when they make an offer.

[Steve Carlton]

I don't know about BC, but around here your numbers seem pretty low. If $29,700 is bottom-dollar on a new one, I'd think a dealer would look at it like they could sell it for $27,000+. Most people would be grateful to get a deal like that. That said, paying up to $24,000+ would be attractive to a dealer, wholesale. If it's the model you want and a color you could be happy with, why risk losing it trying to be greedy?

[Hendog]

i'm not good at car price negotiation, which is why I'm tapping the brain trust here. If you go to Toyota.ca and put in that model/year 2015 RAV4 AWD XLE with nav it will give you a price of $31,700 less $2k for incentive which comes to $29,700. Of course there is still freight, PDI, and whatnot which they do not provide on-line, but I imagine out the door with taxes will come to the ballpark of $37K.
So, what is the private guys car reasonable depreciation hit?

[Steve Carlton]

$31,700 minus $2,000 of incentives sounds like the retail price minus the factory incentives, so I would think that car could be purchased for less with the dealer himself providing a discount. What sort of online resources do you have in Canada for car shopping? Is TrueCar or Costco up there? Do your local dealers have internet sales departments?