KBB Value dropping drasticly

djpheer

So I was in the market for a new car in October of 2013.. my car had 44,000 miles at the time and BBooked for 18,500 on a trade in for "very good" condition according to Official Kelley Blue Book New Car and Used Car Prices and Values. Now if I put in the same car with the same milage I get 15,995 on a trade. This is very disturbing. Anyone else notice this? There is no way it dropped in value that much simply due to time. Meanwhile a 2010 with everything else the same KBB's for 19,084 and hasn't changed much.

6MT-Z34

It could be since they had the steering lock problem and no oil cooler as to the other models??

SouthArk370Z

I've been looking into trading my Z for something I can get worked on and my '09 Touring with 23k miles and in very good condition is valued at $20k-21k, according to the dealers I've talked to. Not sure how that correlates to the price of a base.

Edit: The loan value is only $15k, so some dealers may want not want to pay full value since the car may be difficult to sell to someone not paying cash. I've had two dealers tell me they didn't want the car for that reason.

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Fountainhead

Hey SouthArk,
What do you mean "something I can get worked on". You seem to know the service manual backwards and forwards, what's up?

SouthArk370Z

I used to love working on cars; I've rebuilt Chevy small-blocks, top-loader trannies, &c. Not so much nowadays. I've got everything I need to work on the Z except ramps/lift, I just don't enjoy working on cars any more. Getting the IPDM out to pull the ESCL fuse was an easy job, but I would have gladly paid someone (I could trust) to do it. I still like "tinkering" with cars, but not the real "work."

I don't know the FSM all that well, I just know how to make my PDF reader search all documents in a folder.

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HighLatency

I have, my car between KBB and NADA says ~$19k trade in. One dealer offered me $17k, which goes to show you they don't really care what KBB/NADA say. I know I don't have sport or touring, but its not like my Z is a rustbucket. I also have it for sale privately and someone just offered me $15,500. Sad how bad the resale value is on these cars. I just did one of the auto-trader trade in forms. I am planning to take that to a dealer that has a car I want and see how that works, or if they'll just buy it for what it says.

Rockhound

I've seen this come up quite a bit lately, and even though I'm in the "never selling my Z" camp, I thought I'd do a little research to see how the Z's value has held up when compared to a few other cars (even though I'm a little late to the party on this thread). Bear with me on this, as there aren't many natural competitors to the 370Z, so I threw in a few sports coupes along with a couple BMWs and some Japanese entry-level lux models to see how these cars' values all stacked up 5 years on.

A few caveats: all MSRPs and KBB values were for the 'base' trims of each model with standard equipment. I used the average KBB trade-in value and the maximum KBB private party retail value to compute residual values. Residual in this case is just the amount of original MSRP retained (trade/MSRP and retail/MSRP).



Interestingly, the Z scores just above average with the fourth-highest trade-in residual (from this admittedly small sampling). The three worst residuals from KBB average trade-in value, in order, were the S2000 (likely because it was discontinued?), 335i and Mustang GT. On the other hand the M3, IS350 and Corvette serve to bring the average up with strong residuals.

Aside from a pronounced recent drop as described by the OP, it appears that there's some sticker shock in seeing the value of a 5-year old car, one that started at a MSRP just under $30k. Otherwise, aside from some anecdotes about offers and trade scenarios, it appears that the Z's value is holding up nicely (at least from a theoretical appraisal book value standpoint). Bake in variables like dealers who don't move many Zs to seasonal sales concerns in colder regions, and you can see how the value could take a hit.

Red__Zed

Your model fails to account for the vastly different msrp schemes. Ford runs constant rebates that are huge, BMW consistently sells for msrp, especially on flagships.

Rockhound

Fair enough; this is about as simplistic a comparison as you can perform. It assumes you paid full MSRP across the board, which is how I chose to normalize my calcs. This makes the Germans on this list probably the most accurate calcs, if they tend to sell closer to MSRP.

Of this list, the Mustang likely has the most wiggle room in MSRP vs actual purchase value. So if I had average transaction prices instead of MSRP, the residuals would only trend higher, including the Z.

This still indicates, to me, that the 370Z has decent value retention when compared to other vehicles as opposed to the sentiment in this thread.

MMC Racing

In late 08, I had a local BMW dealer talked down $5000 on a 2009 M3 coupe.

One could also bring up that BMW's get leased at a much higher rate than the other cars in the list..

This wasn't a 6 month, $300,000 study on car depreciation differences, it was a quick comparison based off of like categories. His model didn't fail at all, the only fail was your comprehension of it.

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SouthArk370Z

I appreciate the effort to put together the numbers. Scientific? No. Helpful ballpark figures? Definitely.

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Red__Zed

So, less than 10% off?

That's like getting 2.8k off a mustang, when in reality you'll get something like 10k off.


Thanks for proving my point.

djpheer

Yes it is sickening how if I would have gone through with the trade just 5 months ago I would have gotten $3,000 more assuming the same mileage. Now I am depressed.

murphman

Did the MSRP drop finally hit the used car values?

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DEpointfive0

Holy fuckin hell.
Dropped like a god damn rock...
$20k trade in for sport touring with nav at 40k miles

I assume so

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