Hope it wasn't Weseloh. I could'nt deal with them on two attempts to buy a Vette.

 

It's called 'first year depreciaton". I'm looking at buying the wife a new Cadillac STS and new one's are selling for mid to high 40's. However the same dealer has several "GM Certified" 06 STS's for low to mid $30's. The car equiped the way we way are fully 32% below 07 MSRP.

Tom

 

The first two years is always a bad time to sell a car. Why would anyone pay a premium for your used car when they can get a brand new one for a little bit more money. The finance rates are also lower on new cars than on used cars so the actual cost differnce in the new car is even less than you think.

 

Very well stated... That pretty much answers the question completely.

 

Gee, I think I actually did something right !! Bought my new 06 C6 December 28th, 2006, for $8,556.00 (-15%) under MSRP........

 

two words. supply/demand. period.end of story.

 

Fair deal, but not super great. Not trying to knock your price because I think it's good. However, when you buy an 06 model on basically the last day of the year 2006 when the 2007's have been out for months, you have to expect a very good deal. Dealers do not want to carry last years inventory on their lots and have to try and sell a year newer model at the same time. It almost becomes used if you know what I mean. You picked a good time to buy...

 

Doesn't GMS require that the owner keep the car 2 years before selling?

 

Thanks for your replies. I know you are all right. I was just speaking out of frustration. I will most likely keep it because I just don't want to part with my baby. I am considering Georgia Tech's distance learning master's program. That way I can keep those paychecks rolling in... best of both worlds.

 

I wouldn't personally want to buy a used C6 but the longer warranty has got me rethinking this. I'd really like to own a XLR-V but caddy depreciation is among the worst. $100k for the car new and no telling what it will be after only a few years. Proly drive one off the lot at $100k and lose $40,000 immediately. I think the vette holds it's value well all things considered. I think that 'immediate' depreciation is a measure of how the msrp/selling price compared to the 'real' value of the vehicle. So caddies drop a great deal because, IMO, they are overpriced to begin with but vettes don't drop nearly as much. With the great value that's in the Z06 they don't seem to be depreciating much at all-a measure of the very high intrinsic worth of the car.

 

Only car I didnt take a big hit on when trading it in was a 2001 325 BMW. I trade cars about every 2 years( not the vette, daily drivers) Bought it for 31500. Traded it 2 years later with 32000 miles for 24500. That was the only time I didnt take a bath. Cars are a fun waste of money.

 

1. It's an American car.
2. It's an expensive American car.
3. It's not a practical car.

Did I say it was expensive? Anyway, those are the 3 basic, hard, cold facts. No matter the date, time, or season. It's not only expensive, but it sits in the special price zone, where it's not sooo expensive, like a Rolls Royce that it could maintain its price out of exclusivity, nor is it so inexpensive that it can't depreciate all that much.

But then there's also the possibility, that...

1. Corvettes have a fan base -- that buy new. And they all have their vettes...so a used vette is a totally different group of people.

2. Like any brand-name product, they can charge what they charge. Outside of the fan-base there's a much, much smaller market for a $50,000 toy -- unlike a $50,000 ultility vehicle like a Tahoe or something. The old "No one needs a vette" argument.

3. Most dealers that would sell a used vette, have a bunch new ones on the lot already....do the math.

4. Again, the C6 is old news...vette guys and gals got theirs a long time ago. A used C7 might sell well You know what I mean.

5. Then as everyone has been saying...08s are coming.

6. Cars are the worst, most stupidestest purchase on Earth. Don't expect to ever get your money back...just be happy if you get anywhere near your money's worth!!

 

if you think resale value of Vette is bad, just wait till you find out the value of your Master's degree

I could be wrong about your profession, but in most there really isn't any difference in wages based on BS or MS, unless your profession requires it.

 

I've got a Master's I'd like to sell. All things considered, my Vette has enriched my life more than another useless piece of paper. When I look back on all the crap I learned in College, it's a wonder I can think at all! (Credit to Paul Simon for that one).

 

 

I think that just about sums it up. You need to plan on keeping a new Vette at least 3 years, if not longer, to amortize the depreciation....and you should log the miles. Don't sell it with low mileage...if you do you will never have gotten your dollar's worth. Good luck!

 

You are mostly on the mark. 15% is norm but 20% is not unreal.

 

If you walked out the door today, titled it tomorrow, and tried to sell it back to dealer next week, here is dealer's thought process:

1. Your car originally had MSRP of ?? $55,000.
2. You want to sell it back to dealer, with a few hundred or few thousand miles on it.
3. Dealer says to self, I can buy a brand new one for $49,000.
4. Dealer also says that if I put it on my lot, I need to develop a pool of $$ for the following items: checking car over, $600; potential repairs of unexpected items, paint chips, road rash, etc, $1,000;

Next: If he paid you $47,000, he realizes he could have purchased a new one from GM, with no need to worry about ANYTHING.

Next: He needs to deduct a few $$ to cover his butt--just in case a customer either knowingly or unknowingly hid some problem(s) from the dealer. Let's say $2,000 because parts are high.

Now we are at $45,000. He has not yet built any $$ in for sales commission to salesman, commission to sales manager, commission to G & I person.

He will likely subtract at least $5,000 that could be described as POTENTIAL PROFIT. Problem is next buyer will not go for the asking price.

We are now at $40,000 for the vette that you paid $55,000 last week, the one with only 1,000 miles on it.

He will offer you $40,000. He will put it on market for at least $45,000 to cover some of his overhead.

Please do not take the above literally. This is the thought process of some dealers.

Ed

 

That may be so, but getting a master's and eventually a Ph.D. has always been my goal. I would like to go to MIT if the planets will align. I would do the distance learning at Georgia Tech, but I think it will really help to do a thesis, so I can get into a good Ph.D. program.