Previous Model Year

[Brinson]

How much savings does a dealer have to offer you for you to consider buying a new, previous model year, car they still have on the lot?

Looking at edmunds/kbb, I see cart depreciation difference is about $1500 on most cars in the $20-$30k range. So if a dealer offers $1500 off compared to current model year is that enough for you to do it? Does it need to be more? Would less sway you?

Also, anyone have any experience doing this firsthand and can atttest to what dealerships usually offer?

 

[Zivic]

Depends. Is the previous year model the same as current model year? Substantial revision? Complete redesign/new gen? I bought my 09 odyssey when the '10s were out. I saved 2500+. Nothing changed from 09 to 10.

 

[Meghan54]

Only $1500 in the first year? Really? Most sites put depreciation at roughly 15-25% per year.

As an example, Edmunds, in the Cost to own calculations, depreciates a base 2014 Toyota Corolla at $2700 the first year. In a 2010 article, Edmunds used a Nissan 370z as an example of how much depreciation you can expect, generally. New cost was, on average for a 2010 370z, $$29,873. First year depreciation was calculated to be $$5,687. (Just driving it off the lot depreciated the car $2,559.)

http://www.edmunds.com/car-buying/how-fast-does-my-new-car-lose-value-infographic.html


I think your $1500 first year depreciation is a bit low.


Here's Edmunds TCO----pick your vehicle and it'll show depreciation over several years.

http://www.edmunds.com/tco.html

 

[Brinson]

I was taking an average of the 2nd-5th year as the difference as both current and previous year will be hit with the big amount the first year, then when I resell, there will be an additional year. So if I sold in year 3, it would be the difference between year 3 and year 4.

 

[Zivic]

I was taking an average of the 2nd-5th year as the difference as both current and previous year will be hit with the big amount the first year, then when I resell, there will be an additional year. So if I sold in year 3, it would be the difference between year 3 and year 4.

But in the same equation you need to factor in your car will likely have lower mileage than most out there.... if you go by 12-15k miles a year, quite a few less miles making it worth more.

 

[Midwayman]

Only $1500 in the first year? Really? Most sites put depreciation at roughly 15-25% per year.

As an example, Edmunds, in the Cost to own calculations, depreciates a base 2014 Toyota Corolla at $2700 the first year. In a 2010 article, Edmunds used a Nissan 370z as an example of how much depreciation you can expect, generally. New cost was, on average for a 2010 370z, $$29,873. First year depreciation was calculated to be $$5,687. (Just driving it off the lot depreciated the car $2,559.)

http://www.edmunds.com/car-buying/how-fast-does-my-new-car-lose-value-infographic.html


I think your $1500 first year depreciation is a bit low.


Here's Edmunds TCO----pick your vehicle and it'll show depreciation over several years.

http://www.edmunds.com/tco.html

To be fair, that's assuming a used car. A new, old stock car will be worth more.

In the end it really matters what it'll be worth when you sell.
12k miles on a honda accord is worth ~$500. A year is worth $1200.

$1500 doesn't sound out of range. Though they are probably desperate to sell it. $1500 under invoice for a car in that range might tempt me (Plus all normal incentives)