Trade-In valuations

[Styria]

I was going to elaborate on this subject as part of our Honda Jazz which we bought in March 2013, priced at $20,500.it is quite a bit of a special version, known as the Jazz Vibe S, with some extras such as roof spoiler,15"Alloy Wheel, convential 5 speed Automatic (as distinct from CVT), Metallic Paint, electric folding mirrors with built in direction indicators but, perhaps most importantly, built in Japan, as distinct from Thailand.

Of course, it has been Dealer serviced (always BEFORE time), and has now travelled just on 28K. Kilometers. Would I be wrong in assuming that the value of a car is likely to drop by 45 per cent over three years, although I have noticed that the Honda Jazz has quite an avid following in the Classifieds, showing asking prices somewhat above the 55 per cent valuation. I should also state that the little car is still like new and has been driven in the rain on two occasions, and it is always garaged. So one could assume that it would be a perfect used car to buy, as it also has 12 months warranty left over.

I have slightly flirted with the idea of possibly trading on a used Honda AWD drive CRV, used about three years old, or perhaps a Civic Hatch Demonstrator, so I decided to front up to a Honda Dealer (Scott's) at Artarmon, just to have a look as I was in the area. They did have a Demo Civic Hatch in the showroom (in fact two), so I decided to pop the question of trade-in value - as a matter of interest. I didn't expect anything staggering by way of a "great" deal, knowing full well the reputation of dealers and trades. However, I have to admit at being quite floored by the valuation the Salesman came up with on the basis that "we would like to see the car to give an accurate price, perhaps on the weekend, if you can make it", and he kindly quoted me, wait for it, $5K. to $7K. In my view, that was an interesting enough experience to recount on TK. Needless to say, we won't be visiting the dealer on the weekend. Regards. Styria......or at any time for that matter.

 

[Styria]

As a matter of interest - over a period of twenty minutes, 66 people have read this thread. Am I having myself on, or is this for real ? Regards. Styria

 

[motec 6.9]

Unfortunately that is probably all they will offer. And my older brother who is in the trade in Brisbane tells me as soon as factory warranty has expired they have no resale on any car. As the younger buyers want latest and if no warranty will not even look. That one reason for the increase in warranty to try and keep some resale to retain buyer loyalty. His words were no warranty sell it to sims as dealers cant move them . Unfortunately a quick look on car point found a 2012 Vibe S with 16000km for $12800 . But I have found the same with a few cars in last 10 years that within 3 to 4 years they are worth less than $5000 at sale time . You found that with your Statesman. I found that on my Territory Ghia AWD it was just over $60000 new traded it in at 6 years for a Territory Titanium AWD which was $62000 drive away. I got $10000 for the trade so in 6 years it lost 80% .

 

[Styria]

Geoff, obviously I understand all of that and naturally one would expect the dealer to operate on a profit. No problems with that. As stated in my thread, our Jazz is a 2013 purchase (December 2012 manufacture), so it is somewhat younger than the example you are quoting.

When I was at the Parramatta Honda dealer, they had in stock (and it has been sold since !) a Jazz about exactly the same as ours, but it was a manual transmission car. $13,000 sticker price, about same mileage but what struck me were the tyres. The tyres on the front were a different brand to the ones at the rear, and it seemed to me that they would not have been on the car when new. In contrast, the four Dunlops fitted to "Daisy" (Julie's Jazz) are a new car fitment and show every sign of lasting another twelve to perhaps even twenty four months. You have to ask yourself what the story would have been with that car, and the choice of tyres. Plus Manual vs. Auto.

I guess the warranty period plays a significant part when purchasing second hand. I have spoken to any number of people, have had a thorough look on the internet, and generally most Hondas seem to attract very favourable opinions. I spoke to one CR/V owner the other day (he purchased new in 2008) and in 90K. kilometres has had absolutely no problems. Regards Styria

 

[CraigS]

Just goes to show that if you buy a new car, it is worth driving it into the ground !

 

[Helmet]

Why don't you just sell it privately ? Then do a better deal on a new car with no trade involved and cash in your pocket.

 

[sean sherry]

A very valid topic Styria. Our 2010 C Class with 40K is following Craig's advice. Little Wifey likes the look of the New C Class and that is the closest she will get to such a depreciating asset. The cost of keeping up with the Joan's far out weighs the cost of maintence over the years. Deprecation is the killer.
most of the expensive Electronic Parts for our Mercedes and 2014 VW Golf
can be obtained from Europe or the States for around one third of the local costs.
Eg., a Mercedes " S.A.M. " electronic control Unit ( there are Two of ) costs $1800 each here but a reco. unit with a years warranty from the UK is about $400. I have had two of them replaced under Warranty within two years.
The list goes on.

 

[motec 6.9]

I wasn't having a go Styria as I said I took 80% hit on Territory Ghia. But being December build means to trade its a 2012 not 2013 model. Its how they work. So that means the one I quoted with 16000km is same year and it was Auto. Yes its a private sale add by the way. As for Asian cars most seem to be able to do 3 or 4 hundred thousand KM with only regular maintenance. As for your peace of mind I know of a gen one Jazz in Perth has 360000km and still runs like a top. Still with original owner and always serviced on time. But no part has ever failed on this car.

 

[Styria]

Why don't you just sell it privately ? Then do a better deal on a new car with no trade involved and cash in your pocket.

Helmet, that would more likely be the course we would pursue. Obviously, we'd have to compete with a dealer's second hand car warranty (three months - 5K.), but I am not all that sure how good that warranty would be. I think in our case, should we ever decide to sell, we would probably arrange for a thorough NRMA Inspection which may offer a prospective purchaser peace of mind.

Just another little snippet. Our Daisy actually sports disc brakes at the rear - fairly unique to the Japanese built Jazz. Even the latest model, Thai built, is fitted with drum brakes at the rear. Regards Styria

 

[Oversize]

Unfortunately that is probably all they will offer. And my older brother who is in the trade in Brisbane tells me as soon as factory warranty has expired they have no resale on any car. As the younger buyers want latest and if no warranty will not even look. That one reason for the increase in warranty to try and keep some resale to retain buyer loyalty. His words were no warranty sell it to sims as dealers cant move them . Unfortunately a quick look on car point found a 2012 Vibe S with 16000km for $12800 . But I have found the same with a few cars in last 10 years that within 3 to 4 years they are worth less than $5000 at sale time . You found that with your Statesman. I found that on my Territory Ghia AWD it was just over $60000 new traded it in at 6 years for a Territory Titanium AWD which was $62000 drive away. I got $10000 for the trade so in 6 years it lost 80% .

That's $8333 per year! If you threw that into the pokies you'd be crucified! A few guys at work are leasing fully maintained vehicles...

 

[Michel]

Styria:

Why on earth would you consider getting rid of the Honda at this stage?
This is a car that would last you another 10 years without any dramas if you continue caring for it the way you do.

As far as getting value out of a new car, you have to be able to depreciate it through a business somehow.
Otherwise, you will get a (financial) hit the day you drive it out of the showroom registered to you.

 

[sean sherry]

Yes Michel, you hit a raw nerve there. I sorely miss not having a Business to depreciate a Car through. Private ownership drains the Pocket. Gone are the days when a new Merc could be bought every two years and traded for the purchase price. Still I can't complain, as like the Squirrel, I put a few Nuts away for the Winter time.

 

[Oversize]

It always pays to have a plan & stick to it. I'd say unless you can claim depreciation you'd be better to use it until it becomes unreliable & repair costs increase.

 

[Styria]

From my point of view, obtaining a "quasi" trade-in valuation, has been an interesting experience. I am by no means upset or hurt by the salesman's estimate - maybe he thought I'd look stupid enough to come at his quote. I am just a little disappointed that a Honda dealer would place such a low value on one of their own products.

It is totally co-incidental that we went for a trip up to The Entrance this Sunday just gone, and as a matter of curiosity, decided to carry out another fuel consumption test. From memory, previous tests gave us about forty miles to the gallon. This time, I decided to utilize the car's cruise control feature when and wherever possible, sticking to about 95 to 100 on the inside lane - you know, the "old fuddy" trick - just go as slow as possible without becoming a mobile chicane. Would anyone like to know the outcome of the test ? 216 kilometres, using 11.26 litres of fuel, or in Imperial terms, 54.6 miles to the gallon. I seem to have my doubts, but will double check later on today. That mileage is quite extraordinary. Regards Styria

N.B. Have carried out a further check. 72 kilometers, 4.8 litres, South Wentworthville to Crows Nest and return. In total, 180 miles, 16.08 litres for the two days (Sunday and Tuesday), overall consumption 51 mpg.

 

[Styria]

It always pays to have a plan & stick to it. I'd say unless you can claim depreciation you'd be better to use it until it becomes unreliable & repair costs increase.

Mark, from what I have read on the internet, it would appear that the Honda Jazz (in particular) is stone reliable. Hardly anyone posts 'poor' reviews, and 100K. in mileage is just about totally trouble free - tyres yes, and brake pads, and some earlier models had some rear axle bearing issues - that's on older cars. Other than that, zilch. Regards Styria

 

[sean sherry]

Do I now take it Styria , that you intend to follow the advice of others on the Forum, and just run the Honda for ever ? I certainly have with our C Class and Golf. I have now ceased to be concerned about Trade In Values. The depreciation on a new replacement Car would pay for maintenance for years to come, even with some left of field expenses.

 

[sean sherry]

Up Date on the Honda Civic, now with 5 star crash award.

Kia has been obliged to amend the fine Print on their Capped Service Charges.
Apparently they were free to raise the costs after the Agreement was fixed with Customers. And not tell them. Some Customers are to be reimbursed as a result of this.

A big tick for my local VW Dealer. They are not concerned that the Car is being Serviced by an Independent Workshop and even offered to run a Diagnostic Check just before the Warranty expires to ensure that all is well with the Car. Depends how they are spoken to I guess.

 

[sean sherry]

Correction... Should read Honda Jazz not Civic awarded 5 Stars

A Seniors moment !

 

[Styria]

Hi Sean, it is quite co-incidental that we have received an invite from Trivetts to attend their 3 day end of financial year sales symposium. In other words, they are keen to strike deals. What I have noted is that some of their "package" deals usually encompass the lower spectrum of variants in the model range.

For instance, the latest Jazz model lacks disc brakes at the rear, and also the repeater flashers contained withinn the exterior mirrors now only feature on the better specked models.. So, you're not always comparing like with like, and the unknowing or uniniated can easily get caught out and finish up with an inferior specced product. Regarding longevity, and mechanical reliability, I have been told that the Jazz engine is fitted with a double row timing chain, and not a timing belt that requires replacement at the 100K. mark. That's very reassuring news. So Sean, we are certainly not going to rush into any unwise actions. We have time on our side.

I have also spotted an almost identical Jazz for Dealer sourced sale in Doncaster, VIC. Advertised as a 2013 model although manufactured in 2012, built in Thailand as distinct in Japan (like ours), manual transmission (not Auto) and priced at close enough to $14k. Interesting to say the least, considering the more than "generous" trade-in offer. Honestly, what was he thinking.............. Regards. Styria

 

[BenzBoy]

Yes, strangely I also received an invitation to Trivet's end of year sale - complete with a glass of champagne and a chicken sandwich. No mention of Honda though....
Styria, there is no way you are serious about selling the Jazz so let's face reality. You like Julie's car and it is economic madness to sell so stop even thinking about it. My sister has put almost 300,000 kms on her Civic in 5 years and apart from replacing brakes all she has had to do is a set of rear shock absorbers because one began leaking. It was less than $200 for that job - you're on a good thing so stick to it. (Well unless your heart desire something like Mr Fast and Furious and then you will have to dig deep into the wallet to keep it up to speed.)
Regards,
Brian