Value on everything going down!!!!!!

I just checked the nada and kbb value on my 2 big items, 07 Malibu and 07 Denali and was shocked to see how far they have depriciated based on the 2 books. The Malibu wasnt too bad but the Denali is shocking to see how much it went down. I bought it in May and the trade in value on it has decreased almost $11,000. Thats 11k in 7 months. WOW!!! I have never bought big items like this so is it normal to depreciate that fast or is the economy affecting this?

It's normal to depreciate.... but thats fast.

My wife had an Escalade when I bet her..... thankfully it was a lease. Price was like $55k when she got in...... and under $25k two years later.

Last year I bought an 05 Avalanche with 60k miles for almost $30k under it's original sticker price.

Anything American made seems to depreciate a lot at first, then flatten out. So buy used.

(Message edited by bill_airjunky on November 11, 2008)

If you are looking at wholesale values then your Denali has depreciated a lot more than that. A few months ago I took in a 2008 fully loaded Denali that was 3 months old for $23,000 less than the customer had paid for it. It really doesn't matter much if you plan on keeping it for a while which shouldn't be to tough seeing as they're super nice rigs.

^^^Some people just loved getting bent over..

Deflation.

SUV's really took a hit when gas went to 4 bucks+ a gallon...ALL suv's. Cars and boats aren't investments and I think the reason used boat values are going down is because some people are "dumping" their boats before the repo guy shows up.

nu bu, you don't know the half of it they traded in another car they purchased at the same time as the Denali against the vehicle they bought from us. We actually lost quite a bit of money ourselves to make the deal work for them. They actually lost just shy of $40k of real money they put down when they bought their trades. Really good folks just made a mistake the first go round.

A boat could be an investment depending on what brand and year......The stock market goes down by the day

Hate autos have just always proven to be huge money pits to me, it's amazing how much money people with waste on cars. You would know better than me though working at a Ford Dealer...

I just bought an 08 Tundra Crew Max with the 4.7 liter engine loaded out with chrome, leather, power etc had 7500 miles on it for $21500. Bought when gas was $4 so that helped. A year ago thats at least a 30k or more truck. SUV and big trucks are tanking. Keep them and drive the hell out of them the only way to get the value of your car is to KILL it. Hate got my fingers crossed for you right now.

08 Denali for 23K less than paid...you stole that trade, seriously. I am guessing your customers must have paid MSRP for the Denali. I suspect that they must have, paid MSRP, just becasue they were dumb enough to trade after 3 months.


(Message edited by johnsvt on November 12, 2008)

(Message edited by johnsvt on November 12, 2008)

biggest hit is in the first year, not surprising considering the economics

Eric, I've got an 07 Denali as well, thought i got a smokin' deal when i bought it used at the end of '07 with 11k miles for $20k off msrp. I think it's probably now worth another 10-12k less in one year.

Good news is that, if you're like me, you love the truck and don't plan selling it anytime soon.

I bought a 05 F150 Lariat last year in August up here for 29K. You can buy the truck less then a year later for 22-23K.....piss me off!

Unfortunately no one is really immune from the depreciation realized with autos. The only way thats even close to getting around it is to lease but that's not for everyone .

Ewing, we gave the customer more than ACV on the vehicle.

I blew up my Dodge Durango tow vehicle with 205,000 miles on it in May. In June I bought a 2004 Denali, 60,000 miles for $12,000. Couldn't believe what I got for the money. Forget leasing, used is the way to go.

Thats a good deal Andy. I was more talking about new vehicles than used.

Don't buy anything! Save your money in gold in a tin can in the backyard! Buy guns and ammo too! This is going to be worst financial crisis in history! If you don't know about them go read about Derivatives, there is so much money that is going south in the derivative market that it will take the US dollar right down the toilet with it. No one wants to talk about it, but it's going to happen. It's going to be a world crisis this time though! Inflation is running crazy and demand is running the other way!

Ok, chicken little. I guess if I were a builder in Pomona, I'd feel the same way.

Care to cite or share any of that derivative pander??

IMO derivatives are part of the problem. derivs are based on another asset, instead of trading the asset itself. So, the deriv mkt creates another pool of "investors" away from the actual asset. no wonder they're going south, they're all based on bunch of crap someone says. Not the asset ITSELF.

If you Value being happy and getting what you want, get a good deal and move on. If you are constantly looking at the value of your vehicle like it is a stock, you will be disappointed no matter the market. Part of the problem with the economy is the fact that people like Sam are so scared, they would rather jump in bed and hide under the covers than find solutions.

I think you guys need to get some insight on how the derivative mkt works. Those derivatives are ahead of the market so had people just paid more attention they would realize that "certain" derivatives trade w/the market. And there are several different derivatives so you can't really generalize.

^ I traded MBS derivatives when rates were still coming down. Talk about good times...

So are we talking equity options or what?

I have deposits to build three multi-million dollar houses and have been saving every cent since my bro told me this was coming. While everyone was buy houses my brother told me to sell, now we are buying again... My brother is an MAI appraiser and has his Ph.D from MIT in real estate. He says the derivative crash is going to make the stock market crash look like the Reagan years.

He told me to read
http://www.relfe.com/plus_5_.html

http://www.gold-eagle.com/editorials_00/ci091500.html

The news article is from 2000....

There are several variables to derivative markets, well many markets do play on the edge because of their leverage levels, many are also sound long term investments.

Quick breakdown: Several of your high leverage derivatives were in CDO (Collateralized Debt Obligations) Structures. Now CDO's can be subdivided into ABS (Asset Backed Securities) these are your risky morgage backed assets. This market has taken such a hit that it has disappeared. CBO (Collateralized Bond Obligations) Structures are backed by bonds, well these are struggling because the whole bond market is struggling. CLO (Collateralized Loan Obligations) these are relative long term investments they are affected when companies go bankrupt which is happening right now. This market is essential to the growth of companies because companies use debt to finance operations, since it is cheaper then equity financing.

It is not possible to break down all the derivatives because it is a general term. That is like saying any investment is bad so keep your money under your bed.

right.

So asset backed securities are risky... (talk about a generalization)...

But, these leveraged CLO's are long-term investments....

Sorry ABS generally infers real estate portfolio's. And yes all of those are risky. CLO's are long tern investments some good some bad like anything else.

I can't believe that M.I.T. is giving out Ph.D.s in real estate.

that blows my mind.

http://web.mit.edu/cre/education/doctoral-degree.html