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FLIP'N THE G-5 WHIP
2005 Black Camry
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Discussion Starter · #1 ·
Hello All. The MSRP for the 2006 Camry Standard is $19,855. the 2005 sold for around $19,110. same ball park give or take negotiations, etc. Today, the Trade in value of the 2005 is $14,000. Dealer Retail Value is $17,600, and Private Party Retail is $15,750. this is for a car with around 11,000 miles on it. question: is it more feasible , rather than wait for the 2007 to come, to just trade in the 2005, get a 2006, in order to hold up the value? say, trade in the 2005 and throw the dealer some cash like $2,000 or $3,000, in order to get into a 06 in order not to suffer the further mileage depreciation of the 05? the 05 will not sell as high in 07 as in 06. what i really want is the 07 next year...lol.
 

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You are better off keeping the 05 until you get the 07 as the 05 won't depreciate as much in the next year as an 06 would. A one year trade is hard.

Gary
 

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Premium Member
'96 Camry XLE
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11,246 Posts
You would loose SO MUCH money doing that. Keep it and wait for the '07. :)
 

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FLIP'N THE G-5 WHIP
2005 Black Camry
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895 Posts
Discussion Starter · #4 · (Edited)
Gary_602Z said:
You are better off keeping the 05 until you get the 07 as the 05 won't depreciate as much in the next year as an 06 would. A one year trade is hard.

Gary
Thanks Gary. is the one year trade hard due to dealers do not like to spend out on the high price of the trade in? Kelly Blue Book says 14k and a dealer can still sell the 05 for say around 17K. but i think they prefer to sell the 06 models right now. that is the pressure on them from the top. how is the reasoning and logic of the dealership mentality on this issue? thanks mate. and unless the 05 depreciates more than the difference, then yes. i will lose more money doing it i believe. what is your idea on the 05 depreciation during 06 with say another 10,000 miles on it? say by end of 06 car has 22,000 miles, what will be the value of the whip then?
 

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Premium Member
'96 Camry XLE
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11,246 Posts
Also, the LOW pariced Camry is the STD model, which is under the LE. The LE is ~$1,000 more. Plus think of the extra $$ in Tax you'd be spending on top of it all.
 

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Australian TN'er
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272 Posts
The biggest depreciation for the value of the car happens as you drive out of the dealer driveway. Then it'll depreciate about a third in the first 3 years of the cars life.

So the best value car would be to buy one that is about 1-3 years old =) the owners already done the big depreciation for you =)
 

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FLIP'N THE G-5 WHIP
2005 Black Camry
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895 Posts
Discussion Starter · #7 ·
Phat Devil said:
The biggest depreciation for the value of the car happens as you drive out of the dealer driveway. Then it'll depreciate about a third in the first 3 years of the cars life.

So the best value car would be to buy one that is about 1-3 years old =) the owners already done the big depreciation for you =)
Roger that. you are right about that... that is good horse trading sense. i also think they have different depreciation tables for different parts of the country or for other countries? say, a 2005 camy with 20,000 miles does not sell at the same price in New York City as in Toronto, Canada.... or Miami, FL, etc... so, maybe i will trade in for a 2004 Lexus in 2007...hahahahaha..
 

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Phat Devil said:
The biggest depreciation for the value of the car happens as you drive out of the dealer driveway. Then it'll depreciate about a third in the first 3 years of the cars life.

So the best value car would be to buy one that is about 1-3 years old =) the owners already done the big depreciation for you =)

You are right about this. I have done much cost analysis on this very subject. Typically speaking, it is best to buy a 3 year old car, and sell it (or trade it in) when it is 6-7 years old. This is due to two things, depreciation and the probablilty of repair.

Depreciation is easiest to look at. Everyone knows when you drive a brand new car off a lot, you have just lost 2k in value. That is why you are considered "upside down" in your car loan (your car is insured for less than you owe, well, depending on your down payment.). A car loses a lot of value in the first few years, but between years 3 and 10, the depreciation is fairly linear, and not as bad.

Probablity of repair is the other factor (not many people consider). In the first year, the probability of repair is really high, even for great cars like toyotas and hondas. In the first year you experience manufacturing defects. Doesn't happen all the time, but if there is a defect, you're gonna find out about it in that first year. Hence, the first couple of years having greater probablity for repair.

Years 3-7, maybe longer now with better technology, have fewest repairs. YOu have already worked through the manufacturing bugs, and haven't gotten to component breakdown.

Which is why you should sell around year 7. After 7 years or so you should typically have about 100k miles, and components will start to experience wear causing once again a greater probability of repair. This probability increases from here on out.

Bottom line: Ideally, buy a 3 year old car, sell a 7 year old car. The amount per year spent will be minimized.

:smokin:
 

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Camry Under Construction
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668 Posts
yea if i were you go ahead and keep the 05 and sell it privately when you get the 07 first off you want the 07....why settle for the 06...2nd off do not trade it in dealerships they will not give you enough for what it is personally i would sell it privately and possibly make better money off of it...but these are just my suggestions do what you want

wesley
 

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FLIP'N THE G-5 WHIP
2005 Black Camry
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895 Posts
Discussion Starter · #10 ·
great insight and the good skinny here on the options. thanks guys. my neighbor was telling me to sell it for the nada retail price, pay the difference to the bank, then go and buy a 2001 or 2002 lexus GS300 or ES300 with under 50,000 miles in order to hang on to appreciation, etc... but this sounds like nuts...
 

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Best thing you can do is to pay an extra 50-100 bucks a month to the bank against the principal.

Gary
 

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FLIP'N THE G-5 WHIP
2005 Black Camry
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895 Posts
Discussion Starter · #12 ·
Gary_602Z said:
Best thing you can do is to pay an extra 50-100 bucks a month to the bank against the principal.

Gary
yeah, best advise all night today..lol.
 

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LegendRacer22 said:
i got my 06 for $18k, and now still have a trade in value of $17.5k
I don't think so Tim!:D Trade in values are always a paper figure. Do you really think a dealer is going to give you 500.00 less than you paid for it and then have to sell it for the same or more then a new car? Dealers are not in the business to give you a good deal or to lose money!:lol:

Gary
 

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FLIP'N THE G-5 WHIP
2005 Black Camry
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895 Posts
Discussion Starter · #15 ·
yeah, copy that. the dealer will offer you around $14,000 to not more than $16,000, then turn around and sell the car retail for $17,000 or $18,000...lol. they only deal with money and PC. like a huge cartel...but not from Colombia...hehehe.
 
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