big hit in depreciation

[Super Unique]

I bought my 2008.5 speed3 last year this month. Well, today out of curiosity, I ran the numbers through kelly blue book just to see how much of a hit I have taken in value the first year. OUCH!

paid 23k, today in "excellent" condition worth only 17k

Thats a not very trivial 6k depreciation the first year. Granted, I have no intention of trading anytime in the next 6 years so it doesn't matter to me, and the residual will be minimal at best.

[not yellow]

sounds like you bought it new?
that's just the way it goes when you buy a brand new car off the lot...
i switch cars pretty regularly, but it's almost always one used car to another. i usually lose very little/nothing monetarily in the transition.

[derspi]

Welcome to the world of buying new cars. You pretty much lost that 6K the moment you drove it off the lot.

[crossbow]

Not to mention the economy is shit right now...hell you can get a slightly used 2008 sti for like 26k now...

[Silver Ecstasy]

It takes a couple years atleast, until your depreciation will start to level off a little. As long as you can keep the mileage in decent shape, you should be able to stabilize within 3 years or so, especially when people revolt against the 2010 MS3 and start buyin up older MS3's. Just like when the 08 STI's came out, you could NOT find a sedan 07/06 STI anywhere and people were paying top dollar for them.

[Circle9]

The fist year is a bitch for depreciation, after that, it will slow down a lot. Don't forget that $23,000 also includes about $1500 of taxes.

[squidmotion]

i try to make it back on the other end, by driving it another 10 years after i pay one off... :)

[jred321]

which value did you use? my 2008 normal 3 GT which i paid $20,xxx + TTL for 13 months ago is listed at $16,075 in excellent condition as a trade in, $18,360 private party, and $20,510 (i think that's about what i paid new so that's ridiculous) at a dealer according to KBB.

does the normal 3 depreciate less than the MS3?


the first year is always the worst. after that it still goes down but only a little every year

[jred321]

oh yea and from my point of view i think depreciation is great on this thing if i only lost $4k in the first year on the trade in value, $2k on private party

[dizzin9]

private party value for my car is $21,125, trade-in value is $18,900 (wiggle)

bought car from a friend for $18k. (breakn)

[protege02]

this is one reason why I buy newly used cars(other reason is financing can be ridiculous on cars 3 years or older). I look around for cars with around 5k-15k miles on them, and negotiate starting at the kbb price as a rip off considering they bought the car for a couple thousand less. i.e. an 08 ms3 retails for $22k from what a dealer should sell max, but if someone trades the car in the max they should expect is $17.5k. so I would go in and target the good price(which is $16.6k) as the most i'll pay for because the dealer always have something bad to say about your used car, even if it's in great shape, so I b.s. them back and say your car isn't excellent either and look for small evidence of it, such as small rock chips and stuff no one can actually prevent or find something ridiculously small and be like see look. I've found this to work really well, and it's worked great for me twice. I got my 02 protege for $15k out the door fully loaded with a sticker price of $19.1k in 03 new, I got the 02 spec v in 05 for $11k even with an $2200 extended warranty used with 36k miles and they were asking $13.5 for the car, and the two cars before that were given to me. I plan on doing the samething with getting an ms3, but I'm going to low ball them tremendously because of the economy. I'm shooting for a used 08.5 or 09 sometime around august, but one of the dealers near my house still have 6 new speed3's on the lot, and they've been there for at least 7 months now that I know of considering the 08.5s have been there for over a year now. 4 of them are 09's. My advice is to print that stuff up on kbb and go from there, but don't show them anything until you get what you want, and be willing to go some where else too.

[Circle9]

I don't think the MS3 depreciates to badly. Compare it with the Civic Si which is considered to have very good resale value, a loaded '07 Si with lower miles will go for around $15,000 at the dealer.

[emessthree]

I bought my 2008.5 speed3 last year this month. Well, today out of curiosity, I ran the numbers through kelly blue book just to see how much of a hit I have taken in value the first year. OUCH!

paid 23k, today in "excellent" condition worth only 17k

Thats a not very trivial 6k depreciation the first year. Granted, I have no intention of trading anytime in the next 6 years so it doesn't matter to me, and the residual will be minimal at best.

KBB doesn't accurately take into account limited production vehicles. The demand for an MS3 should be higher than an average car because of the limited numbers.

That isn't to say your car didn't lose value because it definitely did, but I wouldn't put too much stock in the KBB value to be 100% accurate.

[jred321]

KBB doesn't accurately take into account limited production vehicles. The demand for an MS3 should be higher than an average car because of the limited numbers.

That isn't to say your car didn't lose value because it definitely did, but I wouldn't put too much stock in the KBB value to be 100% accurate.

I hate to rain on your parade but the ms3 isnt exactly a collector car. I interpret mazda saying limited edition to mean limited to the number they can actually sell like all other mazdaspeed vehicles. They make a good amount of them and plenty change hands so they have a decent size sample to pull from. Its never spot on for any car because so much is open to negotiation but itll put you in the ballpark

[emessthree]

I hate to rain on your parade but the ms3 isnt exactly a collector car. I interpret mazda saying limited edition to mean limited to the number they can actually sell like all other mazdaspeed vehicles. They make a good amount of them and plenty change hands so they have a decent size sample to pull from. Its never spot on for any car because so much is open to negotiation but itll put you in the ballpark

Your reading comprehension sucks, when did I say it was a collector's car?

I said KBB isn't 100% accurate and doesn't always reflect certain factors of a said car, such as being a limited production run.

[GoFast]

Your reading comprehension sucks, when did I say it was a collector's car?

I said KBB isn't 100% accurate and doesn't always reflect certain factors of a said car, such as being a limited production run.

First, no need to get upset that quick.

Second, he never stated that you said it was a "collectors" car. He was saying that while it is a "limited production" car, it isn't SO limited that it could be considered a collectors car so therefor, any retained value of it based on it being a limited production car would be minimal at best.

[jred321]

Your reading comprehension sucks, when did I say it was a collector's car?

I said KBB isn't 100% accurate and doesn't always reflect certain factors of a said car, such as being a limited production run.

What im saying is being limited production only has a bearing on price if it is a collector car. They make more ms3s than many other non limited edition cars. Limited production run in mazdaspeed cars is just a marketing term

[Hyun]

protege/miata were the true limited production mazdaspeed cars I believe.

[astraelraen]

You guys should go price used CX7s. I bought my 2007 CX7 for ~25k and got a "decent" deal for the time. It's worth maybe 15k trade-in right now at 1.5 years old and only 8500 miles.

That's a depreciation hit lol.

The car market sucks right now. You can get 1 year old used Lexus in my area for 10-15k off the new MSRP.

[Nliiitend1]

I owe substantially less on my car than it is currently worth...(dunno)

You should never buy a car without putting at least ~20% down.

[jred321]

protege/miata were the true limited production mazdaspeed cars I believe.
not really. remember the 2003.5 MSP? the "oh shit people are actually buying these we should make more" models? and they had trouble clearing the miatas off the lot at the end of their model run. both were only limited to the number that mazda could sell. that is the only way in which their production was "limited." they just tracked how many they made and which one went where so people could slap a number on it.

[GoFast]

I owe substantially less on my car than it is currently worth...(dunno)

You should never buy a car without putting at least ~20% down.

what is the relevance of you saying "I owe substantially less on my car than it is currently worth...(dunno)" to this thread. Nobody in this thread is saying that they are in a situation of owing more than there MS3 is worth

It doesn't matter if you put 100% down, your car will depreciate just as much as everyone's.

[Design]

This is one of those cars that is a risk buying used, especially if you don't know who the previous owner was. I have no intention of selling my car within then next 6 years, so I expect absorb most of the depreciation anyways.

As one investor put it, "the best car investment is one that you drive until the wheels fall off."

[GoFast]

This is one of those cars that is a risk buying used, especially if you don't know who the previous owner was. I have no intention of selling my car within then next 6 years, so I expect absorb most of the depreciation anyways.

As one investor put it, "the best car investment is one that you drive until the wheels fall off."


and that "risk" is part of the reason for such a large decrease in value.

[Design]

The good thing is that these cars may become a decent starting platform for the next generation kids. The Neon SRT-4, for example, took a pretty big hit the first few years. But now they've leveled out and sell for 8-10K. That's not bad for a 4-6 yr old car.

[boostdog]

i don't care what any of you say...you have it good compared to the value that my wife's dodge caliber is worth now 2.5 yrs later...guess that's what you get when you buy a dodge....nothing by the time it's paid for!

fyi we paid 19 for it new in 06...it was one of the 1st in our state. 36k miles and 2.5 years later it's worth about 7k.

[Hank3]

Ouch!

[jred321]

it is a dodge caliber though. you had to know what you were getting yourself into before making that purchase

[GoFast]

it is a dodge caliber though. you had to know what you were getting yourself into before making that purchase

(doh)

[Nliiitend1]

I guess I just don't see what everyone is crying about. (dunno)

Anybody who bought this car for it's resale value was being a bit short-sighted, IMO.

Of course, my entire perception is probably skewed a bit since my last two cars were Ford Focuses. (lol2)

[Super Unique]

It's not a matter of intending to get rid of it, but you never know. and it's always good to keep yourself educated on the value of things. Like I said in the original post, I have no intentions at all of getting rid of mine.

I can't see these being highly sought after due to the looks of the new model. But if anyone ever figures out the engine management to any degree of success, you can bet they will be sought after in the coming years as a decent platform to start with for serious mods.

[soulfood76]

This is all interesting considering I'm looking at getting a brand new mazdaspeed 3 right now. I can get a 2008.5 Grand Touring for 20,289, and a 2009 for about 23,000. I was thinking the no brainer here is the 2008.5 unless someone can tell me why the year makes almost 3,000 worth of difference.

[squidmotion]

new car + drive off lot = depreciation

[FrequentFlyer]

Mazda resale sucks in general. It was the same way with my Miata when I sold it. Unless it's a Honda/Acura or a Toyota/Lexus, you're not going to do very well.

[protege02]

This is all interesting considering I'm looking at getting a brand new mazdaspeed 3 right now. I can get a 2008.5 Grand Touring for 20,289, and a 2009 for about 23,000. I was thinking the no brainer here is the 2008.5 unless someone can tell me why the year makes almost 3,000 worth of difference.

get a used one with like 10k miles on it and save about a good $5k or more.

[badself]

Mazda resale sucks in general. It was the same way with my Miata when I sold it. Unless it's a Honda/Acura or a Toyota/Lexus, you're not going to do very well.

100% true. I bought my 2008 CX-9 in April, 2008 and by July, 2008 it was possible to get another $5k off sticker of the same vehicle. These fire sale techniques destroy resale. Why buy a used one when the cost of a new one ends up being a stone's throw away.

Folks talk and reason the issue away by saying they'll drive it till the wheels fall off. Yeah, until it gets totaled in a second of bad judgement by me or somebody else. Then the depreciation factor gets pretty damn real and unavoidable.

[GoFast]

.

Folks talk and reason the issue away by saying they'll drive it till the wheels fall off. Yeah, until it gets totaled in a second of bad judgement by me or somebody else. Then the depreciation factor gets pretty damn real and unavoidable.


....GAP insurance my friend....

[open_season]

....GAP insurance my friend....

While GAP insurance might help you in that situation, I think that the overall point is that the resale value is not as high as we would like it to be and the way the dealers/manufacturers are doing business does not help our cause. Just my 2 cents....

[GoFast]

yes, that is the overall idea behind this thread, but not of that post

[Design]

The real issue right now is the credit crunch, plain and simple. Most would-be MS3 buyers have a limited credit history and cannot secure the required loan without a co-signer. In general, you'll find the value of "pocket rockets" drop quickly up front, but level out as long as demand remains hot. Mazda has a lower resale than many of its Japanese counterparts, but demand is still very good for this car. In So Cal, for example, the average life of a used MS3 on the dealer lot is about 4-5 days.

[Super Unique]

I was well aware of the resale tendencies of Mazda products, which is precisely why I went with gap insurance when I purchased. Having previously owned a toyota, a honda, early mazdas, and some american iron, along with a Lotus product, I am still surprised that there is this lower resale on Mazda due to perceptions.

I can tell you clearly Mazda quality is better than any of the others I have named. At least right now it is. My speed3 is the first vehicle I have owned that I really loved to drive, and had no real problems with. True enough there was the radio bug, but mazda handled it well.

My toyota had zero soul, and was a mechanical wreck.

My Honda was dead reliable, but had no on road character

My RX2 was a great driver, but mechanically needy

The Lotus was a great driver, good overall reliability, but very finicky on maintenance (86 esprit turbo)

[squidmotion]

Folks talk and reason the issue away by saying they'll drive it till the wheels fall off. Yeah, until it gets totaled in a second of bad judgement by me or somebody else. Then the depreciation factor gets pretty damn real and unavoidable.


you got me there... but i usually put up a huge down payment, 5k or better. that usually takes care of it, though my insurance covers what i owe on the car.

i guess if you are planning on buying and selling a new car every two years, you have to expect to get slammed. all cars depreciate. it's just the facts. hehe, you should see what happens to BOATS!

i totally agree that you can save big money on a year old car. or even one with 10k miles or so on it... i have also had good luck with that, more-so when i could pay cash outright for the whole deal. but on the other hand, the two cars that i've bought new, and taken care of from day one, have served me trouble free miles. and also got a very good trade-in value (according to KBB) at mazda... so good i nearly fell out of my chair.. honestly, i was going to keep the xterra, but i couldn't justify it after what they offered me for it.... so they do hold their value a bit more on the long end, sometimes...

i guess i don't understand the question, or just don't care about depreciation.... i bought this car because i thought it was a kick-ass value... and i fit in it. my wife likes it, impressive mileage for the performance, super fun to drive, etc. wow, i took a 5k hit for driving it off the lot in my name.... darn.

[MikeHTally]

25% is actually a bit low compared to some brands. Mine was $24,700. Edmund's shows just over $20k now.

[Super Unique]

Since Chrysler filed bankruptcy, watch their values drop like stones made of lead :)

[MikeHTally]

If GM follows, they'll have $25K rebates on $20K cars.

[Super Unique]

Here is an interesting tidbit for us. When I purchased my speed3 one of the alternatives I considered, and what turned out to be a front running competitor the 2008 dodge caliber srt4 was running very very close to the speed 3 in purchase price.

Today I ran the numbers for both and here is the telling results.

dodge caliber srt4 - excellent trade in value 12,900
mazdaspeed 3 - excellent trade in value 17,900

both 1 year old with 24000 miles on the odometer.

Glad I did go for the speed 3 in this instance :)

[Silver Ecstasy]

Wow, great test! The CSRT4 feels like a $12,000 car on the inside..

But then again, there are people who could give a damn about the interior and only care with how fast the car goes, period.