Quote:
Originally Posted by onewhippedpuppy
Are you kidding me? Ever owned a Toyota? We bought a 4Runner new, 5 years and 60k later we sold it for 2/3 of what we paid. Japanese cars, particularly Honda and Toyota, hold their value incredibly well.
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I asked a loaded question.
Yes, I've owned some Toyotas, and your 4Runner experience was representative of the mighty giant just a couple years ago. But times have changed. The Toyota Tundra, 4Runner, and FJ now have
lower projected residual values than the top American competition. They now also have huge cash rebates, once the exclusive albatross of the Big Three.
On that note, the biggest equalizer of resale value is REAL initial transaction price relative to MSRP. If a $30K msrp Camry XLE is purchased for $28.5K then sold two years later for $18.5K it held 62% of its value and incurred $10K in real depreciation. If a $30K msrp Malibu LTZ is purchased for $26K (because of huge rebates and discounts) then sold two years later for $17K it 'only' held 57% of its value, and $9K in real depreciation. Of course the media will report that Toyota retained 5% better resale value.
The 'real' incurred depreciation is now closer than ever, measured over the entire product lines of the major manufacturers. Certain models do better, some do worse, but Toyota (and to a lesser extent, Honda) no longer have the clear advantage they once enjoyed.
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