Re: Top 10 highest resale value vehicles

When it comes to leasing, the MSRP PLUS any package discounts, are used to
determine the residual value. I.E. An MSRP of say $40,200 that shows a
package discount off the original price, if the options were ordered
separately, of say $1,500, then the residual on a two year lease would be
say 72% of $41,700.

Ones payments are based on paying 24 months, plus interest on around
$11,675, or $486+. If the actual retail is, lower the buyer walks away and
the leaseor eats the loss.

On the other hand it one bought the vehicle at $40,200+and paid $1675+ for
24 months, the buyer would eat the loss if he traded.

When one figures their cost of any vehicle one must ALWAYS look at the total
cost to drive it homes, not only the selling price on which you and the
dealership agree. First they lowball your trade, then the dealer installed
"smoke and mirrors high profit options," added dealer fees (profits.) One
must add, taxes, and the cost of financing that are all part of what it
costs to drive home the vehicle. Always get a total drive home price
BEFORE you sign on the dotted line, whether you buy or lease, would be my
advice. Many dealers had hundreds or even thousands to their "selling
price" after you have agreed on the selling price

When determining resale values of used vehicles, generally, base MSRP is
used with additions (or subtractions for, or lack of, options with additions
or subtractions for mileage and overall condition for the model year. In
the real world a buyer needs to determine the resale value of his vehicle
based on his actual purchase price. I.E. Two similarly sized and equipped
vehicles may have a similar MSRP but if one person buys from a dealership
that added a $2,500 smoke and mirrors package and the other buys from a
dealer that discounts his vehicle $2,50o, then when both trade they both get
$10,000 for their trade, the guy that got the discount actually has the
vehicle with the better resale value. No only is he ahead on the purchase
price he has a much greater RETURN on his original investment. Especially
if he financed the purchase.

Toyota often advertizes their superior 'resale value' but just try and get
an advantage of that so called better resale value when he gives you a trade
price. Toyota dealers are famous in the business for getting their
customers to buy another Toyota while offer less than wholesale for their
Toyota trade.

Educate yourself, check NADA and look at the spread between the wholesale
and retail prices of domestic and most imports. You will discover it is
the import DEALERSHIPS that are getting the better return on YOUR
investment. When I was in retail we sold just about every brand you can
name in our stores is six eastern states. We consistently made a much
higher PRCENTAGE of profit on our import brands than domestic brands because
buyers though they were "better" and we reaped the benefits of their
beliefs. We even made a much higher PRCENTAGE of profit on service because
they were willing to pay much higher shop rates as well. LOL





"Tomes" <ask.me@xxxxxxxx> wrote in message >>>>
But, the problem with this is these are the *expected* resale values
of the vehicles 2 or 3 years from now and they are as a percentage of
the actual price of the vehicle. So if a Lincoln Navigator is already
steeply discounted, well, the discounted price is actually used and
not the list price.

The numbers appear to be used to determine the price of leases, not as
actual prices.

****************
The Featured Vehicles to the right of the story are not the vehicles
with the highest residual value, i.e., Navigator, Explorer, etc.

You have to watch the slide show to see the vehicles with the highest
residual value.

Interesting that with current resale numbers often exceeding retail new
car numbers that the Prius is not on this list.

I was wondering about that, too.
Cathy

Maybe this is all happening since that article was authored.
Tomes


.

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