OMG I can't believe the value drop on my ss/tc
10-06-2009, 11:02 AM
#29
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Our Kia forte comes with 10yr-100,000 mile powertrain, 5yr bumper to bumper, and 5 yr roadside assistance....
My last DD was a 2003 chevy silverado that I bought for $25000.00. When it was stolen last summer (at the end of June, hence the cobalt in July) insurance paid me $19500.00. So in 5 years it lost $5500, but my Balt lost $6000 in a year...
I'm not trying to argue, just saying I was really surprised, that's all.
My last DD was a 2003 chevy silverado that I bought for $25000.00. When it was stolen last summer (at the end of June, hence the cobalt in July) insurance paid me $19500.00. So in 5 years it lost $5500, but my Balt lost $6000 in a year...
I'm not trying to argue, just saying I was really surprised, that's all.
10-06-2009, 11:09 AM
#30
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10-06-2009, 11:12 AM
#31
well gee i don't know like check the stats and consumer reviews and ratings, it got a higher all around rating than the cobalt. the Forte got a 8.4 out of 10 rating where as the Cobalt only got a 6.8 out of 10 you do the math
10-06-2009, 02:17 PM
#34
a kia hold its value? uhh ok. maybe more so than 5 years ago as their reliability has gone up some but the only cars holding real value are the exotic and low production ones.
I dont care what kind of car it is, if you buy new then sell you will amost all the time lose money. even on a honda. Thats paying msrp, not you haggling them down 7k then turning and selling it. Also you have to consider the location and if anyone is even going to pay asking price. there may be a honda near you wanting $X for sale, but they may not even get close to that.
Its a cobalt, a econobox, cheaply built car, wtf do you expect? My ms3 had slightly better holding value, but thats because its a better fit and finish car with more options. It still lost value but not as fast as the SS. You have to base the value lose off msrp to compare it to other models though now what you paid otd cuz thats different for everyone.
I dont care what kind of car it is, if you buy new then sell you will amost all the time lose money. even on a honda. Thats paying msrp, not you haggling them down 7k then turning and selling it. Also you have to consider the location and if anyone is even going to pay asking price. there may be a honda near you wanting $X for sale, but they may not even get close to that.
Its a cobalt, a econobox, cheaply built car, wtf do you expect? My ms3 had slightly better holding value, but thats because its a better fit and finish car with more options. It still lost value but not as fast as the SS. You have to base the value lose off msrp to compare it to other models though now what you paid otd cuz thats different for everyone.
10-13-2009, 05:25 AM
#36
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GM made a mistake years ago getting onboard the incentive train and it's hurt them and consumers over the long haul. Now everyone expects bigger and bigger incentives but it drags the value of the car down. I bought my Cobalt for a few hundred over dealer invoice plus took another $1.5k off from that for rebates at the time but it will still be another year or two before I have any equity. I knew depreciation was going to be bad on this car going in, but I also knew I was going to keep it for a long time and that didn't bother me (that and I made sure to buy GAP coverage).
Nearly every new car depreciates the day you drive them off the lot and some are worse than others. When GM increases incentives on the left-over and end of model year cars it lowers the value for everyone else that bought one earlier in the year. Then you have used cars coming up at auction and dealers set the used vehicle and "book value" prices in part by what they're willing to pay for them. They only pay what they know they can sell a car for, and in the case of the Cobalt and even a "special" SS Turbo, it isn't going to be a whole lot. Why would I pay more for a used one when right now here in SoCal there is a leftover loaded '08 with $4.5k in incentives that could be had for just under $18k? Or the end of last year when a dealer closed and sold their stock to another Chevy dealer which resulted in a "used" loaded '09 with under a hundred-fifty miles for under $19k?
This should also be a reminder to anyone thinking about trading in their car while upside-down. You'll never get as much for your car as you would selling it privately, but if you have to trade-in just to dump your old car and get out of the payment they will roll over multiple thousands of dollars into your next car. What happens when the value of the new car suddenly drops like a rock? You end up in scenarios where you owe $25k on a car that is now only worth $15k which is all too common with younger buyers. Then a couple years later when you can afford something nicer or want something new you have to either trade it in again and get further upside-down or continue driving your old car because you can't afford to sell it and pay it off.
I once knew someone who had an older car and bought a used import luxury car, then decided a couple months later he wanted an Evo. It was "only" twenty bucks more per month even though he got hit on the trade for his couple month old car. Then a newer Evo came out he had to have it and again it was only a few bucks more per month on a longer term loan. I think he did it one more time after that. Sure, the payments may not have gone up dramatically, but now he was stuck owing on the car for probably eight years and it wouldn't surprise me if he didn't get to the point of having any equity for another half a decade.
Nearly every new car depreciates the day you drive them off the lot and some are worse than others. When GM increases incentives on the left-over and end of model year cars it lowers the value for everyone else that bought one earlier in the year. Then you have used cars coming up at auction and dealers set the used vehicle and "book value" prices in part by what they're willing to pay for them. They only pay what they know they can sell a car for, and in the case of the Cobalt and even a "special" SS Turbo, it isn't going to be a whole lot. Why would I pay more for a used one when right now here in SoCal there is a leftover loaded '08 with $4.5k in incentives that could be had for just under $18k? Or the end of last year when a dealer closed and sold their stock to another Chevy dealer which resulted in a "used" loaded '09 with under a hundred-fifty miles for under $19k?
This should also be a reminder to anyone thinking about trading in their car while upside-down. You'll never get as much for your car as you would selling it privately, but if you have to trade-in just to dump your old car and get out of the payment they will roll over multiple thousands of dollars into your next car. What happens when the value of the new car suddenly drops like a rock? You end up in scenarios where you owe $25k on a car that is now only worth $15k which is all too common with younger buyers. Then a couple years later when you can afford something nicer or want something new you have to either trade it in again and get further upside-down or continue driving your old car because you can't afford to sell it and pay it off.
I once knew someone who had an older car and bought a used import luxury car, then decided a couple months later he wanted an Evo. It was "only" twenty bucks more per month even though he got hit on the trade for his couple month old car. Then a newer Evo came out he had to have it and again it was only a few bucks more per month on a longer term loan. I think he did it one more time after that. Sure, the payments may not have gone up dramatically, but now he was stuck owing on the car for probably eight years and it wouldn't surprise me if he didn't get to the point of having any equity for another half a decade.
10-13-2009, 05:40 AM
#38
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American cars blah blah. It's almost every new car, toyota, honda, whatever it is, they all lose a lot of value when taken off the lot.
Yeah gap insurance most def. x2.
Yeah gap insurance most def. x2.
Last edited by splitintlss; 10-13-2009 at 05:40 AM. Reason: Automerged Doublepost
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