Sunday, October 02, 2005

Used Car Values and Honda

When buying a new car:

"If you’re a short term owner (≤ 5 years) and the car has been redesigned for the new model year, then you’ll be better off paying a bit extra for the newer version.

If you’re a short term owner and the car hasn’t been redesigned, then you might come out ahead with the older model year, but only if you can get a really big discount.

If you’re a long term owner (≥ 5 years) and the car has been redesigned, then buy whichever one you happen to like better — the difference in resale value will be minimal by the time you finally get around to selling."

This all makes sense for every other car manufacturer except Honda. The used car prices on Hondas are ridiculous. They don't go down a bit after 2-3 years. I have seen 2-3 year old civics listed for $14,900. That is almost the same price you pay for a new civic. Where is the depreciation? You can buy used Camrys or Altimas at that price. Why people pay 14k for a used civic? This is beyond me.

No comments:

Post a Comment