trade-in value for hondas is better?

golden_zap · Apr 4, 2006

um, i dont know if this is true, but my friend told me that it's better to buy a Honda because they make the most reliable engines, therefore, whenever you are trading in your Honda, the value of it will always be slightly more than competitors?

is this true?

thanks.

egads · Apr 4, 2006

A Honda engine will go to well over 200k with nothing but normal maintenance. Of course the same could be said of a Toyota. Al lot of resale value has to do with public perception. As we know here at the Odyclub, Hondas are not infallible. They have components that are poorly designed or poorly manufactured. Automatic transmissions anyone? There were some Toyotas that had engines that produced oil sludge. So as with anything there are exceptions. But if the public thinks they are better, you get the benefit.

wild willy · Apr 4, 2006

Dealers LOVE to get Honda's on trade.....Because they can sell them quickly for a nice profit. You can bargain much better if you have a honda in your garage to get rid of.

Better engines........Bull shiat!

Timing Belts..Blah!

bambam05ody · Apr 4, 2006

I recently traded in a 2004 Civic for a 2006 Civic. My 2004 only depreciated $1,400 in 17 months and about 17,000 miles of ownership. That's based on the sticker price of the 2004 vs the trade-in credit I received towards the 2006.

Now my former 2002 Pontiac Montana - The sticker was about $31,000. Purchased it new in July of 2002 and traded it in on my Ody in March of 2005. After 32 months and 32,000 miles - about $14,600 for trade in. Ouch!!

If you want to do some research - go to edmunds.com and look at the true cost to own numbers for different cars. They have figures, including expected depreciation, for all of the available cars out there.

TX WJ · Apr 4, 2006

After we sold my wifes 2000 Civic LX with 70,000 miles for $8000 (she paid $14,000 when new) I knew that it would be Hondas, Acuras and Toyota for me from here on out.

wild willy · Apr 4, 2006

When we got married in 1999..My wife had an Si with 70k on the clock......When she bought it it was around13-14K.

I drove it one time to Pitt and traded it the next day....9k on a trade was pretty damn good!!

skinny2 · Apr 4, 2006

Yes, the Hondas will likely be worth more on trade/resale than the competitors. They're also generally more to buy when new as well. I'm not sure the difference is really as huge as some make it out to be.

I paid around $32,000 for my Ody. KBB claims with 11k miles, it's worth $24,050 on a trade. I don't really consider 25% depreciation in one year all that great. The Tahoe we traded was 3 years/45k miles and we got 50% on trade compared to what we paid when new.

Remember, when you look at residual value %, it's comparing resale to MSRP. Since many vehicles sell well below MSRP nd have incentives, residual % isn't all that terrific of a gauge. I suppose there are some dumb-dumbs that pay sticker for a Taurus, but for the most part the resale difference isn't as large as many folks would like you to believe.

bambam05ody · Apr 4, 2006

"After we sold my wifes 2000 Civic LX with 70,000 miles for $8000 (she paid $14,000 when new) I knew that it would be Hondas, Acuras and Toyota for me from here on out."

I got $4,750 out of my 1997 Civic LX with 113,000 miles, and it was a standard transmission. Plus, I traded it in on the 2004 I mentioned in my previous post. Amazing, isn't it ?!?

"I paid around $32,000 for my Ody. KBB claims with 11k miles, it's worth $24,050 on a trade. I don't really consider 25% depreciation in one year all that great. "

IMHO.....KBB tends to be a little low on the trade in value side somtimes vs NADA. Plus, the first year usually takes the biggest hit on the depreciation.

NADA lists my Ody at $21,625 trade and $24,850 retail. KBB lists it at $20,675 trade and $26,665 retail (both excellent condition). Not bad for a one year old vehicle that was $26,000 new.

skinny2 · Apr 4, 2006

I think the LX will likely have the best resale value over the term.

I have a couple dealerships as clients and know the workings fairly well. Generally, they try to get in a vehicle at KBB trade, but a lot of it depends on how desperate they are for the sale/trade. I ended up $500 over KBB on the Tahoe trade, but I was $500 over invoice on the Ody so big whoop I guess.

They also look closely at what the vehicles are selling at the auctions. Vehicles with a lot of lease returns like an Accord can hurt trade-in. If a dealer can buy it at auction for $1,000 under KBB trade, why get too aggresive with a customer?

Honda/Toyota have less depreciation in years 1 & 2 than the domestics, but then they pickup in years 3 & 4. That's why sometimes a slightly used Honda/Toyota doesn't seem like a great deal.

bambam05ody · Apr 4, 2006

"I think the LX will likely have the best resale value over the term."

As a percentage of original cost, yes. Although they are very nice, most of the fancy options of higher-end models depreciate faster than the "base" potion of the vehicle. I have always been a big fan of the Honda "LX" line...1993 Civic LX, 1997 Civic LX, 2006 Civic LX, 1995 Odyssey LX, 2005 Odyssey LX. The DX and VP models offer great value at initial purchase for the basic "here to there" transportation buyers. However, they tend to make resale harder as the line is lacking a lot of the little extras that most people look for as almost standard equipment these days. Items such as power windows, power locks, cruise, A/C, CD player. And most people looking for value in a used vehicle don't care (or are not able) to pay a lot more for upscale options like DVD navigation, etc. Most of the people that want those options have the preference and ability to but new anyhow.

"I have a couple dealerships as clients and know the workings fairly well."

Ditto!

"Vehicles with a lot of lease returns like an Accord can hurt trade-in."

I think that, together with fleet sales, is what hurts the domestic makers the most.

6spdtl · Apr 4, 2006

Depreciation in Hondas is much better than in most cars. Maintaining good residual value has always been a Honda priority. That is one of the main reasons Honda avoids gimmicky rebates and incentives, that coupled with known reliability make them a particularly good car investment.

golden_zap · Apr 5, 2006

Thanks for everyone's replies.
so im guessing i can summarize it as "the trade-in value is better because it's a japanese brand".

:stupid:

6spdtl · Apr 5, 2006

golden_zap said:
Thanks for everyone's replies.
so im guessing i can summarize it as "the trade-in value is better because it's a japanese brand".

:stupid:

Not quite. Toyotas and Hondas do have higher resale values because they also have a much stronger used market. Not all "japanese" makers do nearly as well.

If you are interested in car depreciation go to kelley's blue book website.

anewman3 · Apr 5, 2006

I just got $19,500 on a trade-in on my 04 with 39,800 miles, a hole in the bumper and a wrinkled hood. KBB said it was worth $18. Car-max offered us $16. Actually Car-max gave us blue book once on a car and we were surprised. The next car I took there they offered about 2500 below Blue book. This last time I told my wife "I bet they offer 16,500" and they offered 16. What's funny about it is that the no haggle procedure works both way there. We very easily got up and walked away because there is no discussing it. Of course he through in a couple of "so it's not that bad huh?" and "so should we right this up?".

I don't think so, thanks anyway, sorry for wasting two days of your time looking at cars.

CPSDarren · Apr 5, 2006

Keep in mind that you will often see Honda on the top of residual and resale value calculations published in magazines. These are almost always calculated based on a percentage of MSRP. Many other brands sell for much more substantial discounts to MSRP, even before significant rebates are included.

As a point of reference, I purchased a 2001 Odyssey LX for MSRP and sold it 5 years later for $14,500 to a private party. Trade-in quotes were around $12,000. At that price, I was competing on the market with some 2004 base model Grand Caravans. Of course, they were probably leases or rental cars and sold for considerably less than the Odyssey did. Fortunately, no rental car market for Hondas...

CPSDarren · Apr 5, 2006

anewman3 said:
I just got $19,500 on a trade-in on my 04 with 39,800 miles, a hole in the bumper and a wrinkled hood. KBB said it was worth $18. Car-max offered us $16. Actually Car-max gave us blue book once on a car and we were surprised. The next car I took there they offered about 2500 below Blue book.

We got a quote from Carmax on my wife's 5-year old Chrysler Cirrus for considerably above blue book and were quite surprised. We ended up taking their quote to the Carmax new car dealership where they also gave us the tax savings on the new car and the result was almost the private party value.

The next two quotes from Carmax were somewhat below blue book, including our 5-year old 2001 Odyssey that was in very good shape and nicer IMO than the Cirrus. Go figure.

hondafans · Apr 6, 2006

I was just offered $29,000 for my 04 Acura TL 6MT with 18,500 miles. I paid $33,000 18 months ago. I hope to have a new Taffata White Odyssey Touring w/navi sitting in my driveway some time next week. It looks like I'm good to go for $7100 out the door with my trade.

golden_zap · Apr 7, 2006

but aren't honda engines generally the most advanced and whatever?
isn't that why all hondas are "fun to drive"?

loveboxers · Apr 7, 2006

I owned a 92 Accord that I paid $15k for and sold it 80k miles and 6 years later for $8,250. It was the best value retaining vehicle I've ever owned.

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06 Touring R&N
slate/olive

trade-in value for hondas is better?

golden_zap

egads

wild willy

bambam05ody

TX WJ

wild willy

skinny2

bambam05ody

skinny2

bambam05ody

6spdtl

golden_zap

6spdtl

anewman3

CPSDarren

CPSDarren

hondafans

golden_zap

loveboxers

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