Do you ever worry about resale value?

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Re: Do you ever worry about resale value?

Post by DKaz » Mon Apr 01, 2013 2:33 pm

I just thought, a lot of things can affect resale value. Choice of colour, lack of A/C, getting a 2WD truck or SUV, whatever those two wheels may be. Timing could be a big one too, fuel efficient cars are in high demand when fuel prices are high, while SUVs are in demand when fuel prices are low. Certain vehicle types sell better in certain markets than others. Try selling a Smart or Scion IQ in Texas. Luxury cars in general seem to drop in value a lot faster than non-luxury vehicles.
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Re: Do you ever worry about resale value?

Post by ashowofhands » Mon Apr 01, 2013 5:58 pm

Not with my current car - I intend to keep it until it dies.

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Re: Do you ever worry about resale value?

Post by Rope-Pusher » Fri Jul 19, 2013 7:55 pm

Some good discussions on leasing, some new trends in leasing and the history of leasing.
http://www.autoline.tv/show/1723
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Re: Do you ever worry about resale value?

Post by Rope-Pusher » Fri Jul 19, 2013 7:59 pm

Rope-Pusher wrote:Some good discussions on leasing, some new trends in leasing and the history of leasing.
http://www.autoline.tv/show/1723
Interesting point is that leasing limits the financial risk, so while it isn't the least expensive method of ownership, you don't get stuck with some huge surprise bill, which a person of limited means might not have the resources to deal with.

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Re: Do you ever worry about resale value?

Post by AHTOXA » Fri Jul 19, 2013 9:20 pm

DKaz wrote:I just thought, a lot of things can affect resale value. Choice of colour, lack of A/C, getting a 2WD truck or SUV, whatever those two wheels may be. Timing could be a big one too, fuel efficient cars are in high demand when fuel prices are high, while SUVs are in demand when fuel prices are low. Certain vehicle types sell better in certain markets than others. Try selling a Smart or Scion IQ in Texas. Luxury cars in general seem to drop in value a lot faster than non-luxury vehicles.
I actually see many Smarts or IQs here. definitely more Smart cars here than in Chicago.
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Re: Do you ever worry about resale value?

Post by tankinbeans » Fri Jul 19, 2013 9:34 pm

I leased this last time because I wanted to force myself to stick worth a car for a set amount of time. Previously I financed and traded too often. Leases can be broken, but require more hoops than trading.
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Re: Do you ever worry about resale value?

Post by Boston Fit » Sat Jul 20, 2013 6:30 am

Rope-Pusher wrote:Interesting point is that leasing limits the financial risk, so while it isn't the least expensive method of ownership, you don't get stuck with some huge surprise bill, which a person of limited means might not have the resources to deal with.
I would say that leasing swaps one set of financial risks for another - reducing some, but elevating others. Factors like length of possession, annual mileage, primary purpose (business or personal), and a dozen others will determine which option poses lower overall risk for someone.
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Re: Do you ever worry about resale value?

Post by Rope-Pusher » Sat Jul 20, 2013 7:31 am

Boston Fit wrote:
Rope-Pusher wrote:Interesting point is that leasing limits the financial risk, so while it isn't the least expensive method of ownership, you don't get stuck with some huge surprise bill, which a person of limited means might not have the resources to deal with.
I would say that leasing swaps one set of financial risks for another - reducing some, but elevating others. Factors like length of possession, annual mileage, primary purpose (business or personal), and a dozen others will determine which option poses lower overall risk for someone.
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Imagine you're leasing a pick-m-up when the price of gas soars. You could do a lease swap or, at if you 're close to the end of your leasing contract, wait it out to the end of the lease, turn it in, lease something else, and not have to worry about the loss of residual value. FNU had bought the truck, you would be stuck with losing a big portion of it's value while trying to sell it in a down market, or holding onto it and paying a lot for fuel.
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Re: Do you ever worry about resale value?

Post by Boston Fit » Sat Jul 20, 2013 7:43 am

Rope-Pusher wrote:Imagine you're leasing a pick-m-up when the price of gas soars. You could do a lease swap or, at if you 're close to the end of your leasing contract, wait it out to the end of the lease, turn it in, lease something else, and not have to worry about the loss of residual value. FNU had bought the truck, you would be stuck with losing a big portion of it's value while trying to sell it in a down market, or holding onto it and paying a lot for fuel.
Correct, and that is an example of a risk that can be managed through a lease. At the same time, other risks would go up. The net risk, and thus the "correct" choice, depends on individual needs.
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Re: Do you ever worry about resale value?

Post by Rope-Pusher » Sat Jul 20, 2013 8:09 am

Boston Fit wrote:
Rope-Pusher wrote:Imagine you're leasing a pick-m-up when the price of gas soars. You could do a lease swap or, at if you 're close to the end of your leasing contract, wait it out to the end of the lease, turn it in, lease something else, and not have to worry about the loss of residual value. FNU had bought the truck, you would be stuck with losing a big portion of it's value while trying to sell it in a down market, or holding onto it and paying a lot for fuel.
Correct, and that is an example of a risk that can be managed through a lease. At the same time, other risks would go up. The net risk, and thus the "correct" choice, depends on individual needs.
Precisely! Needs and conditions. Kind of like betting that you're gonna die during the period of time that you purchase term line insurance. What might normally be considered "Being dealt a losing hand" could make you a winner compared to all those fools who purchase insurance and then don't die.
You could say that when you lease a vehicle, you unload some of your risks back onto the dealer for a fee.
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Re: Do you ever worry about resale value?

Post by theholycow » Sat Jul 20, 2013 8:26 am

Leasing is a more structured way to buy a few years of a vehicle. If you have stability and structure and can afford the extra cost it can simplify your car ownership experience. I'm not sure what kind of gamble you're still taking once you've decided on a lease; it's all on paper from beginning to end. I'd say the only thing left up in the air is if you damage it in a way that you're not going to claim on insurance, like modifications, or if you decide to go over your miles.

Don't forget that with a lease you can sell the car any time. The buyout value is probably pretty similar to what it would cost to pay off a purchase loan. Not that that's easy...I wanted to sell out of my VW but I couldn't get any bites. It's tough to sell a late model car that you bought/leased new unless you can take a loss due to the sharp drop in value the day you drive it off the lot.

However, the real strength of leasing is for companies, not individuals. Leasing simplifies paperwork and takes a bunch of complications and labor out of vehicles.
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Re: Do you ever worry about resale value?

Post by Rope-Pusher » Sat Jul 20, 2013 9:01 am

theholycow wrote: However, the real strength of leasing is for companies, not individuals. Leasing simplifies paperwork and takes a bunch of complications and labor out of vehicles.
Leasing business assets is like hiring temp workers. On the show in the link, they got into that a bit near the end. Leasing automobiles to individuals was a later development.
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Re: Do you ever worry about resale value?

Post by Rope-Pusher » Sat Jul 20, 2013 9:44 am

AHTOXA wrote: I actually see many Smarts or IQs here. definitely more Smart cars here than in Chicago.
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They neglected to mentioned the paucity of parking plots in Texas, but I'm sure that's a reason you've seeing more than your fair share of Smarts.

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Re: Do you ever worry about resale value?

Post by daleadbull » Sat Jul 20, 2013 9:57 am

I could see resale being a concern if your particular car comes with both automatic and manual. In that case, a particular customer interested in your car might be looking for a auto which could hurt you.

On cars that only come with a manual, it doesn't hurt resale at all. For example, my car only comes in a manual so if a person is looking to buy a Golf R then by extension he already knows that he's getting a stick.

In either case, its not a big deal. You can always trade it in when you buy a new car.
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Re: Do you ever worry about resale value?

Post by Tups » Sun Jul 21, 2013 6:58 am

Not really. Neither of my cars has any.
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