Depreciation!

[GTNator]

There are a lot more NNBS for sale this year compared with last year and the prices are much softer both in my area and sometimes on ebay but not always.

Remember Cash for Clunkers? That debacle raised the prices of used cars considerably.

Haha, I had forgotten about that, lol, cash for clunkers.


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[Stresst]

Watching the value of any depreciating asset is setting yourself up for disappointment.

Yes of course but what I mean is this body style really depreciating much faster then the previous body styles. AND what is scary is next year they come out with a completely new body style the 2015-2019's are going to be worth pennies! Sad to say the least!

 

[07Burb]

They won't be worth "pennies" as they age their depreciation rate will slow like everything else. I'm not sure what else you'd expect from a $50k+ American made SUV. It's not going to hold it's value and the higher end you buy the more it'll fall. Not sure what you bought but think about those that paid 70-80k for their GM SUV. Most don't buy these for them to retain their value.

 

[Stresst]

They won't be worth "pennies" as they age their depreciation rate will slow like everything else. I'm not sure what else you'd expect from a $50k+ American made SUV. It's not going to hold it's value and the higher end you buy the more it'll fall. Not sure what you bought but think about those that paid 70-80k for their GM SUV. Most don't buy these for them to retain their value.

I get it, trust me. All I am saying and questioning is after owning several of these trucks over the years I think (maybe its just me) that these 2015-2018's are dropping faster then the previous generations. Again maybe its just me! lol

 

[CMoore711]

same for almost any vehicle, this is why I buy them at 5years old when they are 1/2 price. the only way to keep the value a bit is to never drive it and keep the miles off

This exactly! I’ve never purchased brand new, and don’t ever plan to.

I always buy 1-3 years old and usually CPO’d for 12 months. I drive my vehicles quite a bit, 25-30K miles a year. So leasing isn’t a good option. I typically drive a lot of miles, equally maintain/upgrade as I go, and try to get as close to 200K+ miles as I can before replacing. Because of this I’m also always willing to travel and patiently wait for the color, options, condition, that I want. The last 3 vehicles I’ve bought have been out of state.

 

[homesick]

... Remember Cash for Clunkers? That debacle raised the prices of used cars considerably.

I was thinking the same thing as I read this.

joe

 

[LT1ZOB]

They won't be worth "pennies" as they age their depreciation rate will slow like everything else. I'm not sure what else you'd expect from a $50k+ American made SUV. It's not going to hold it's value and the higher end you buy the more it'll fall. Not sure what you bought but think about those that paid 70-80k for their GM SUV. Most don't buy these for them to retain their value.

Your "70-80k for GM SUV" comment reminded me of my experience when I started looking at Tahoes again earlier this year. As I said in my earlier post, I hadn't looked at prices in the last 10 years while leasing. Not kidding, my initial reaction to these Tahoe prices was outloud laughter. I realized quickly though that it wasn't a joke, but the joke would be on me if I paid that kind of money for a daily driver built by the quality-oriented folks in the factory. (Some of you may not like the "quality-oriented" comment, but brought home my brand new vette in 2016 and proceeded to rip out the interior to bare panels and reinstall it all myself. It was a shitshow of half assed, careless assembly complete with a variety of loose nuts and bolts. Went from a rattlebox to a quiet interior and only took 60 hours of work on my part over several weekends while the car was put away for the winter). Sad how little pride the people assembling "America's sports car" took in their work.

Having said all this though, comparing depreciation of GM SUVs to other SUVs in a similar price range, leads me to believe that they are all fairly similar (maybe with the exception of a Land Cruiser). I still think it's best, unless it's some special car you plan on holding forever, to let someone else take the initial bath on price, then buy it used.

 

[swathdiver]

I forget the exact numbers but in high school economics class, the 1st year of depreciation was about 1/4 to 1/3 and by the 5th year was worth about 1/2 or something like that. For tax purposes, I still think we can depreciate the whole thing in 5 years. These truths only really change by percentages based on market value; supply and demand and what folks are willing to pay.

 

[Shadow17]

I bought it new I had a better deal new than used I look all around 34,000 miles on 2017 Tahoe for $39,000 dollar. Wow that’s expensive couldn’t find anything better some had 40,000 miles on them and 40,000 thousand dollars used and expensive. These model are mostly base model cloth seat . At least a found 2018 new one with leather so far for 46,000 thousand dollars .Sometime a used deal not worth it if your saving five thousand from used to new. And it has @al ost 40,000 miles o it

Wouldn’t this make it appear the used models are holding their value then?


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[fiatdale]

I dont know about all that. I seem to think these and all other full size barely depreciate. Everyone seems to still be paying top dollar for K2XX and some NNBS still.