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NINETY EIGHT REGENCY

Top 10 Luxury Vehicles with the Lowest Resale Value

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Top 10 Luxury Vehicles with the Lowest Resale Value

But First Snide's Remarks: Before you go believing all of these Forbes via Kelley Blue Book residual values, remember which side Kelley’s bread is buttered (See Also: Edmunds.com Explains Kelley Blue Book Pricing)...take some time to accurately and unbiased-ly compare Total Cost of Ownership, have fun! Let me know what you think; msnide@theautochannel.com.

Washington DC July 13, 2007; The AIADA newsletter reported that poor reliability, aging designs and supply that exceeds demand are the main culprits for low resale values.

The 10 luxury vehicles likely to shed the most value over time each have at least one of those qualities.

Forbes magazine has compiled a list of those ten, along with pictures and explanations of their value-losing potential.

The top two value losers on the list are the Lincoln Town Car and Mercury Grand Marquis. Both cars are sold in large numbers to various vehicle fleets, such as limo, taxi and rental agencies, and they use decades-old technology.

Larry Batton, president and founder of Auto Appraisal Group Inc., says that these two cars "are archaic and don't fulfill the requirements of modern buyers." Other cars on this list have a similar issue: Their price is too high for the value they offer.

It's important to note that this list isn't comprised of a bunch of bad cars. Usually they perform well. The question is, how much are you willing to pay for perceived prestige?

Forbes List Of 10 Worst Residual Valued Luxury Cars - Kelley Blue Book Values

10. Cadillac SRX V8

MSRP: $43,870

Residual Value After Five Years: 27 percent*

9. Ford Expedition V8 4WD

MSRP: $32,895

Residual Value After Five Years: 27 percent

8. Cadillac DTS V8

MSRP: $41,990

Residual Value After Five Years: 26 percent*

7. Cadillac STS V6

MSRP: $42,765

Residual Value After Five Years: 26 percent*

6. Lincoln MKZ AWD

MSRP: $31,765

Residual Value After Five Years: 26 percent*

5. Mercedes-Benz E550

MSRP: $59,775

Residual Value After Five Years: 26 percent*

4. Jaguar S-Type V6

MSRP: $49,000

Residual Value After Five Years: 25 percent*

3. Jaguar X-Type Sedan and Wagon

MSRP: 34,995

Residual Value After Five Years: 25 percent

2. Mercury Grand Marquis LS

MSRP: $30,320

Residual Value After Five Years: 23 percent*

1. Lincoln Town Car

MSRP: $42,985

Residual Value After Five Years: 17 percent*

* Residual values are courtesy of Kelley Blue Book and expressed as a percentage of the original MSRP.

source:

http://www.theautochannel.com/news/2007/07/13/054954.html

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A rather predictable list. I'm kinda disappointed that the STS is on there. I wasn't so much surprised to see the SRX listed, but somehow I don't think the 2007+ model will fare so poorly.

I am a bit surprised to see any Mercedes on the list.

At any rate, how do you predict a 5-year residual value on a car that hasn't been on the market for 5 years? (STS and MKZ come to mind.)

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OH, PUHLEASE! Before we get into another snore-fest debate about how $h!ty GM's products are and how THEY ARE THE WORST INVESTMENT ON THE PLANET, if anything GM is guilty of trying to allow their dealers to actually make money because clearly the "MSRP" (which on the more expensive GM vehicles has had little meaning in YEARS) is too high. GM would argue that this allows them the flexibility to offer discounts and programs both seasonally and to adjust for rising or falling demand - which is a valid argument. I would argue that they are perhaps a bit optimistic when launching a vehicle, but in either case the actual TRANSACTION price of these vehicles is probably $3-5k LESS than the MSRP.

Which is why I argue that Black Book, Blue Book, Pink Book - whatever, are USELESS.

But it makes great headlines to make import humpers justify the $8k more they paid for their Lexus, don't you think? <_<

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OH, PUHLEASE! Before we get into another snore-fest debate about how &#036;h&#33;ty GM's products are and how THEY ARE THE WORST INVESTMENT ON THE PLANET, if anything GM is guilty of trying to allow their dealers to actually make money because clearly the "MSRP" (which on the more expensive GM vehicles has had little meaning in YEARS) is too high. GM would argue that this allows them the flexibility to offer discounts and programs both seasonally and to adjust for rising or falling demand - which is a valid argument. I would argue that they are perhaps a bit optimistic when launching a vehicle, but in either case the actual TRANSACTION price of these vehicles is probably $3-5k LESS than the MSRP.

Which is why I argue that Black Book, Blue Book, Pink Book - whatever, are USELESS.

But it makes great headlines to make import humpers justify the $8k more they paid for their Lexus, don't you think? <_<

Except, I must again plead for you to think of the guy who is stuck with one of these and a 5 year loan (or more)....

It's not fair for US luxury car buyers to have to take it in the shorts after being patriotic and buying one of these! You're constantly yammering about the great deals to be found at the US lux makes, but you hardly ever consider the ramifications of these people's experience.

It's a cold reality that needs to be addressed. These are people that have already been through the door, not import converts...it should be the easiest resale, as you've already sold them on the product before. It's an awful way to have your customers treated, IMHO.

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Since when are the Grand Marq. & Expedition luxury vehicles?

That's like the jackasses who call their Accord coupe a "sports car"

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CarBiz is right. Should I be upset that the $22k residual on my CTS lease is 57% of the $38k MSRP after 4 years?

Of course not.... after discounts, rebates, coupons, and GM card points, I drove out of the dealer for about 30k.... or about 73% actual vehicle cost after 4 years.

edit: Right now there is a $4,000 rebate on DTS before any dealer discounts...... and who in the hell EVAR pays 30k.. much less sticker.... for a Grand Marquis?

Edited by Oldsmoboi
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Except, I must again plead for you to think of the guy who is stuck with one of these and a 5 year loan (or more)....

It's not fair for US luxury car buyers to have to take it in the shorts after being patriotic and buying one of these! You're constantly yammering about the great deals to be found at the US lux makes, but you hardly ever consider the ramifications of these people's experience.

It's a cold reality that needs to be addressed. These are people that have already been through the door, not import converts...it should be the easiest resale, as you've already sold them on the product before. It's an awful way to have your customers treated, IMHO.

I feel nothing for the guy who got a DTS and paid sticker. That's his own damn fault. If he's going to be that dumb, the dealer should charge him a "market adjustment" just for having to deal with him.

This whole article is nothing but a puff piece for the imports.

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CarBiz is right. Should I be upset that the $22k residual on my CTS lease is 57% of the $38k MSRP after 4 years?

Of course not.... after discounts, rebates, coupons, and GM card points, I drove out of the dealer for about 30k.... or about 73% actual vehicle cost after 4 years.

edit: Right now there is a $4,000 rebate on DTS before any dealer discounts...... and who in the hell EVAR pays 30k.. much less sticker.... for a Grand Marquis?

First, you're quoting from a subvented lease arrangement (ie. GM foots part of your depreciation, as this vehicle is around 42%) so its not an apples to apples comparison. GM has handed you 15 points or $4,500, in real terms, not including interest!

And you get to hand it in at the end, without having to pay $22k for a car worth under $17k on trade.

Again, for the educated enthusiast, this isn't an issue. For a guy wanting to drive his dream Caddy, he's getting boned in the worst way as he doesn't have GM picking up $9,500+ on his deal.

I just don't understand the blind defense of the indefensible. Lexus 'jacks' people for MSRP, yet GM leaving someone who straight financed their CTS with a $9,500 FU is somehow OK?

You finally get people in the showroom with a pulse and this is what happens to them? Zephyr, MKZ, CTS, Jag, whatever...its BS and you'd agree if the Domestic 2.8 weren't behind the curtain.

Edited by enzl
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I have no sympathy for those who don't or won't educate themselves when making major financial decisions. A fool and his money are soon parted.

But again, using the MSRP as the starting point to calculate residual is deceptive.

30k for a Grand Marquis? C'mon.....

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So then....what are you saying? THe people who look into purchasing American cars are morons? :P

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So then....what are you saying? THe people who look into purchasing American cars are morons? :P

No, he's just restating what has obviously been the domestic lux position for years: F the customer.

And that, my friend, is why the German and Japanese luxo makes are destroying the US competition. (It's only the fastest growing, most profitable car segment....I'm sure Ford has some more assets to mortgage :rolleyes: )

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Posted Image

That image is funny! :lol:

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So then....what are you saying? THe people who look into purchasing American cars are morons? :P

WTF?

No, I'm saying that this survey is stupidly deceptive. The Grand Mark is an extreme example of course, but look at it. MSRP is 30k... but real world transaction price is 21k. This article claims that a Grand Mark is worth $6995 after 5 years. <23% of 30k>. That sounds like a fairly realistic price for a 5 year old Grand Mark. But when you compare actual transaction prices, the Grand Mark is actually worth about 33% of it's original market value.

What I want to see is where cars stack up when comparing real world transaction prices. We may find that the domestics aren't nearly as bad as this article wants to imply. I'm not saying that a Grand Mark is going to be as good as a 5-series..... but it's a full 10% better than the made up numbers from the article suggest.

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Enzl, you and people who support this Kelly Bluebook BS (Japan Inc., for example) are deliberately muddying the waters. Your arguments are totally groundless.

One of our guys has flipped his cars from Altima to Grand Prix and now is looking to lease a CTS - and he has not once been out of pocket. In fact, with the $6,500 he is going to save on the CTS and subvented interest and ridiculously high residual from GMAC, he is going to pocket a few grand AND have no payment for 39 months.

Seriously. It is easy to see how Japan Inc is managing to railroad us all into a Third World Nation. Are you playing deliberately dumb, or do you have some kind of agenda? I am not trying to pick a fight here, but you keep harping about some poor hapless schmuck who is getting rooked by GM's depreciation, but from where I sit that clearly is not the case. In fact, as long as the customer keeps buying GM, he is going to escape this cycle. Of course, if he jumps to an import brand with his 5 year old domestic, then perhaps he will get raped, because he will be hit by the double whammy of the import's outrageous interest rates, crappy discounts AND the "depreciation" that loftily gets threatened.

If GM gave the f'ing cars away for FREE, some people would not be happy.

For example: a 2007 Optra LT, has a FREE sunroof ($844 credit), 72 months 0% financing, you can use up to $700 Visa points, we can give you a further $750 "competitive bonus" just for driving any of 40 some-odd competitor's small cars (Acura, Honda, Kia, etc) and you don't even have to trade the vehicle and it doesn't even have to be yours (only be in the "household"), plus there is a $1,000 possible value for a pre-1995 beater that doesn't even have to start (Car Heaven)......GOOD GOD. Have I missed any of the deals just from GM and GMAC, before the dealer has discounted a f'ing dime?

Setting aside the Civic has a FAR higher MSRP and is at 3.9% and has no sunroof credit......JESUS. WHAT DOES THAT BRING THE TRANSACTION PRICE OF A $21K LOADED OPTRA DOWN TO? 18K? 17K? WHO THE f@#k CARES IF THE VEHICLE IS ONLY WORTH $4,500 IN 6 YEARS AND THE DAMNED CIVIC IS WORTH $8,000. WTF is 3.9% of $25k over 60 months? How can the hapless consumer afford to pay off a damned Civic in 60 months if they have no money to put down, plus still eat?

WOW. This kind of argument is just nuts. And it is literally bringing our CIVILIZATION down. Japan Inc pushes the &#036;h&#33; out of these fictious numbers, people supposedly in the know swallow it (or at least appear to swallow it <_< ) and the already jittery Mr. and Mrs. Joe Sixpack go and buy the damned Honda because YOU'VE just convinced them the bloody thing might be someday, possibly, in the event of a metor strike, be worth more than the Optra. :banghead:

This argument just goes round and round, doesn't it? :deadhorse: Without any research whatsoever, we can just troll out some stupid book, throw in a few lofty sounding MSRP numbers and then sit back and watch the crowds flock to the Toyota and Honda dealers. Don't factor in cost of money (AFTER ALL, IN YOUR WORLD EVERYONE PAYS CASH, DON'T THEY?), don't factor in the actual transaction price, maintenance, repairs or insurance. AFTER ALL, THAT SPOILS THE JAPAN INC KOOL-AID, DOESN'T IT?

THIS IS JUST CRAZY, AND WHAT REALLY GETS ME ANGRY ABOUT THIS AGENDA BEING PUSHED BY CERTAIN INTERESTED PARTIES IS THAT THEY KNOW BETTER.

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Hasn't the depreciation myth been debunked yet? There are way too many variables to really get an accurate picture. The best thing anyone can do is be an intelligent consumer....I know that is asking for alot.

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Enzl, you and people who support this Kelly Bluebook BS (Japan Inc., for example) are deliberately muddying the waters. Your arguments are totally groundless.

One of our guys has flipped his cars from Altima to Grand Prix and now is looking to lease a CTS - and he has not once been out of pocket. In fact, with the $6,500 he is going to save on the CTS and subvented interest and ridiculously high residual from GMAC, he is going to pocket a few grand AND have no payment for 39 months.

Seriously. It is easy to see how Japan Inc is managing to railroad us all into a Third World Nation. Are you playing deliberately dumb, or do you have some kind of agenda? I am not trying to pick a fight here, but you keep harping about some poor hapless schmuck who is getting rooked by GM's depreciation, but from where I sit that clearly is not the case. In fact, as long as the customer keeps buying GM, he is going to escape this cycle. Of course, if he jumps to an import brand with his 5 year old domestic, then perhaps he will get raped, because he will be hit by the double whammy of the import's outrageous interest rates, crappy discounts AND the "depreciation" that loftily gets threatened.

If GM gave the f'ing cars away for FREE, some people would not be happy.

For example: a 2007 Optra LT, has a FREE sunroof ($844 credit), 72 months 0% financing, you can use up to $700 Visa points, we can give you a further $750 "competitive bonus" just for driving any of 40 some-odd competitor's small cars (Acura, Honda, Kia, etc) and you don't even have to trade the vehicle and it doesn't even have to be yours (only be in the "household"), plus there is a $1,000 possible value for a pre-1995 beater that doesn't even have to start (Car Heaven)......GOOD GOD. Have I missed any of the deals just from GM and GMAC, before the dealer has discounted a f'ing dime?

Setting aside the Civic has a FAR higher MSRP and is at 3.9% and has no sunroof credit......JESUS. WHAT DOES THAT BRING THE TRANSACTION PRICE OF A $21K LOADED OPTRA DOWN TO? 18K? 17K? WHO THE f@#k CARES IF THE VEHICLE IS ONLY WORTH $4,500 IN 6 YEARS AND THE DAMNED CIVIC IS WORTH $8,000. WTF is 3.9% of $25k over 60 months? How can the hapless consumer afford to pay off a damned Civic in 60 months if they have no money to put down, plus still eat?

WOW. This kind of argument is just nuts. And it is literally bringing our CIVILIZATION down. Japan Inc pushes the &#036;h&#33; out of these fictious numbers, people supposedly in the know swallow it (or at least appear to swallow it <_< ) and the already jittery Mr. and Mrs. Joe Sixpack go and buy the damned Honda because YOU'VE just convinced them the bloody thing might be someday, possibly, in the event of a metor strike, be worth more than the Optra. :banghead:

This argument just goes round and round, doesn't it? :deadhorse: Without any research whatsoever, we can just troll out some stupid book, throw in a few lofty sounding MSRP numbers and then sit back and watch the crowds flock to the Toyota and Honda dealers. Don't factor in cost of money (AFTER ALL, IN YOUR WORLD EVERYONE PAYS CASH, DON'T THEY?), don't factor in the actual transaction price, maintenance, repairs or insurance. AFTER ALL, THAT SPOILS THE JAPAN INC KOOL-AID, DOESN'T IT?

THIS IS JUST CRAZY, AND WHAT REALLY GETS ME ANGRY ABOUT THIS AGENDA BEING PUSHED BY CERTAIN INTERESTED PARTIES IS THAT THEY KNOW BETTER.

If my claims are 'myth', why has the % of consumers upside-down increased?

If your dealership doesn't quote real trade-in value than you guys must be doing it with mirrors, 'cause that's how the rest of us do it.

Japan, Inc. dragging our civilization down the drain is a grossly misinformed argument that has alot less merit than 'dealers use blue-book values on trades'.

Our trade deficit has existed for years. Not buying crap 'because its Domestic' is as capitalist as it comes.

Who the f%$# wants to buy an Optra (Korean-built, BTW) anyway?

Your defense is ridiculous....And depending upon GM trade-ins when GM is quickly shedding marketshare is a sure fire way to be out of business. That's old-school thinking from someone who clearly hasn't a clue how the 2.8 will succeed in the 21st century.

I've got no agenda, and more riding on GM than you. I just see the facts on the ground and call 'em. You live in a neo80's fantasy.

Edited by enzl
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If my claims are 'myth', why has the % of consumers upside-down increased?

Quite simply... Stupid consumers and smart salespeople.

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Quite simply... Stupid consumers and smart salespeople.

Smart F&I...but that's not the issue here.

Book is book. Carbiz may know something about Canadian retailing, but the 'book' is a dealer's best friend. "Stealing" a trade is bloodsport down here.

Resale matters, whether Real Estate or cars. And I haven't even begun to point out that the 3 yr old Optra is a used market coma patient, while the 3 yr. old Civic is sold after a few days in the paper. No trade-in makes the residual value issue moot.

There's no free lunch. Bad residuals, subvented leases, record rebates & incentives mean one thing: Your stuff isn't selling at sufficient quantities. The last thing you need to do is twist the knife on your loyal clientele. And that's what it is. Rant all you want about agendas....the truth is that since the facts are against you, you have to scream about other, unrelated issues to distract the reader.

Toyota outsold Chevy & Ford nameplates last month. Fact. You need to accept you're sick to try and get well. GM, Ford & Chrysler are failing, they need a new course.

0% on a Korean rehash for 72 months ain't gonna do it. The fact such an argument is remotely plausible in certain minds exposes the disconnect with reality, IMO.

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Smart F&I...but that's not the issue here.

Book is book. Carbiz may know something about Canadian retailing, but the 'book' is a dealer's best friend. "Stealing" a trade is bloodsport down here.

Resale matters, whether Real Estate or cars. And I haven't even begun to point out that the 3 yr old Optra is a used market coma patient, while the 3 yr. old Civic is sold after a few days in the paper. No trade-in makes the residual value issue moot.

There's no free lunch. Bad residuals, subvented leases, record rebates & incentives mean one thing: Your stuff isn't selling at sufficient quantities. The last thing you need to do is twist the knife on your loyal clientele. And that's what it is. Rant all you want about agendas....the truth is that since the facts are against you, you have to scream about other, unrelated issues to distract the reader.

Toyota outsold Chevy & Ford nameplates last month. Fact. You need to accept you're sick to try and get well. GM, Ford & Chrysler are failing, they need a new course.

0% on a Korean rehash for 72 months ain't gonna do it. The fact such an argument is remotely plausible in certain minds exposes the disconnect with reality, IMO.

Why do you keep bringing up numbers sold? Toyota outsold BMW last month too... doesn't mean their resale is better.

You're also only focusing on one half of the equation. We all know that domestics have lower trade in values. We accept that. We live. We laugh. We cry. We move on.

But Domestics are also willing to deal. Except Saturn, the price on the sticker is NOT the price you pay. Until very very very recently, Toyota and Honda never had much in the way of incentives.

Yes... resale value sucks on a domestic.... IF YOU WERE STUPID ENOUGH TO PAY STICKER!

Go to BMW... try to talk them down on that 5-series the same dollar amount you talked the Caddy dealer down on the STS.

Go to Benz... try to talk them down on that E-class the same dollar amount you talked the Chrysler dealer down on the loaded 300c.

Go to Lexus.... try to talk them down on that LX570 the same dollar amount you talked the Lincoln dealer down on the Navigator.

IT JUST WON'T HAPPEN!

You'll buy the STS...or the 300c... or the Navigator...... and then you'll whine because that 48,000 <sticker> 300c is only worth 25k four years later, but you'll forget that you only paid 38k for it.

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Smart F&I...but that's not the issue here.

Book is book. Carbiz may know something about Canadian retailing, but the 'book' is a dealer's best friend. "Stealing" a trade is bloodsport down here.

Resale matters, whether Real Estate or cars. And I haven't even begun to point out that the 3 yr old Optra is a used market coma patient, while the 3 yr. old Civic is sold after a few days in the paper. No trade-in makes the residual value issue moot.

There's no free lunch. Bad residuals, subvented leases, record rebates & incentives mean one thing: Your stuff isn't selling at sufficient quantities. The last thing you need to do is twist the knife on your loyal clientele. And that's what it is. Rant all you want about agendas....the truth is that since the facts are against you, you have to scream about other, unrelated issues to distract the reader.

Toyota outsold Chevy & Ford nameplates last month. Fact. You need to accept you're sick to try and get well. GM, Ford & Chrysler are failing, they need a new course.

0% on a Korean rehash for 72 months ain't gonna do it. The fact such an argument is remotely plausible in certain minds exposes the disconnect with reality, IMO.

Well, let me see. We can call up either one of our Toyota stores if we want a trade in value on a Toyota. We often use one of the guys up the street who manages the Honda store for their trades. We have 3 wholesalers that we use. Blue book? Black book? If the phones went down and none of our other resources were available. Talk about the '80s mentality? Who even uses printed resources any more, or the internet? The prices at the auctions change every week. The customer in front of me is buying TODAY. He/she deserves TODAY'S value for his/her trade. SHEESH.

As has been lost in the braying of the Japanese cheerleaders, the point of this thread is that the American luxury brands have the worst resale value, according to some self appointed expert, based on MSRP and some "book value" that is obsolete once it is announced. If a Cadillac is $43k, but can be "bought" for $37k, then the APR is 0.9%, where is the downsize? Does Bluebook take all this into account? NO, IT DOES NOT. End of story.

Is this bad news for GM and Ford? Well, obviously it is. Can they keep this up forever? No. If they don't get off this incentive merry-go-round, they will eventually go under. Any first year economics freshman knows that. However, as long as the mystical forces keep perpetuating the lies and myths that everything American made is crap, Detroit will have to continue the incentives while they keep freshening their line ups and improving their quality, until they finally reach the point that enough consumers (and apologists) come out of the ether to realize the '80s are over.

I was using the Optra 5 as an extreme example, and because I knew it would create a reaction. But when you can finance a Cobalt for the same payment as a leased Civic, clearly the Cobalt is the better deal. Besides, I've seen Canadian figures, and in the Toronto area, leases are reaching the 60% market saturation point. The point of leasing (at least with the major manufacturers, anyway) is that you can just walk away in 3,4 or 5 years. Since payment is all that matters in that case and the Cobalt is about $30 a month LESS than a Civic around here (and that is before PERSONAL incentives, like $1,500 visa points, loyalty bonuses, etc.) are added. I JUST DON'T SEE HOW BLUE BOOK OR ANY OTHER F'ING BOOK FACTORS INTO IT.

If we "ripped off" our customers on their trades, we wouldn't stay in business, would we? If some dealers staff are so lazy that they don't shop their customer's trades with the local wholesalers and the actual make's dealers, then I would submit THEY are short changing their customers. If the Japanese dealers are using Blue Book, then they are the ones ripping off their customers, but then making the Big Three look bad is their agenda, isn't it?

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OH, and Enzl, if you think the Optra is a "used car coma patient," let me know when you get one traded in. We can't keep them on the lot. Maybe Canadians are a little smarter and can't justify the "extra" to buy a used Civic?

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First, stop twisting leasing into this. Subvented leasing makes & no buy at the end of term makes the #'s meaningless.

Second, you've got to be sh!tting me that an Optra & a Civic are comparable in anything other than size. One substituting for another assumes Stevie Wonder will be driving it and Christopher Reeve his passenger each day, so forget convincing me on that level. A Suzuki Fornza or Reno here in the US?....please...l Back of pack when introed, this thing's not getting better with age.

Third, 'book', as a generic term, only means one thing to my used car guys...we know what a bank will lend on that vehicle! The spread between trade-in and ultimate resale of that vehicle is my profit margin, so we're careful to trade 'right.'

I don't know how you do it where you are...and it sounds to me like you are leaving a whole lot of info out...such as, if what you say is true, how do you make money on used cars brought in through trade, as your professed generousity would make it impossible to make $....so where does the truth lie? Somewhere in between, I suspect, as you obviously don't have your finger on the pulse in your operations. My co. buys 1000 used vehicles/Mo. I Know

Edited by enzl
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enzl... why do you not use the actual initial purchase cost instead of the MSRP cost when figuring depreciation?

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enzl... why do you not use the actual initial purchase cost instead of the MSRP cost when figuring depreciation?

In the example you mentioned about a CTS at $30k, I did use your purchase price to bolster my argument that someone financing (not leasing) would still take it on the chin....

I agree that MSRP is relatively meaningless....however, most models within a few months of intro are sold at or close to MSRP....meaning GM's $5,000 rebates undermine all of those customers' financial positions within a couple of years after intro.

So, the guy who falls in love with the new CTS can reasonably expect that his trade will be undermined by over production and GM's 'throw cash at it' markeing schemes when he wants to trade it in.

That's not how you build owner loyalty...and GM ends up footing the bill twice....once with the rebates, then again with the lease returns that are worth (in your example) $5000 less than the residual.

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