SRT8's value depreciate quickly?

[Kobe24]

Friend of mine was looking at car over the weekend, so I drove him to the dealership. The salespeople come out and they are making comments on how they like the car alot. Just for fun with no intentions of trading it in the appraisal guy was sitting there and stated he would give me $27,000 for it, I grabbed my friend from the salesperson and told him lets go, just for that comment alone I knew these guys were crooks. A year ago when I traded in my 300c I got 29-30 for the trade in towards my SRT8. Looking at KBB the trade in value should be around 34,375. Given the $27,000 that is a tremendous hit a year especially given the fact that when I got my SRT8 there were still dealer markups. Are the 300 models in general on the lower side of trade in or are the SRT8's


Top of the line brand new 07 300 SRT8 retails 48,325 fully loaded just of off retail price and what the crook I mean dealer offered of 27,000 it would be a drop of about $ 21,000 in a year or going off of Kelly Blue Book it would be a drop of $13,950 in a year


Looking at an Acura TL 07-08 retails for 36,225
Kelly Blue Book retail is for same miles and like features of the 300 trade in value is $27,600 drop of $ 8625 in a year


Lexus IS350 similar features $ 42,640
Kelly Blue Book same miles of the 300 and TL

$ 32,300

drop in a year 10,340


Cadillac CTS-V $ 53,470.00
Kelly Blue Book $ 36,775 with like miles and options as the SRT8 drop of
$16,695


Pontiac GTO $ 33,785
Kelly Blue Book with like miles for all other cars $23,425
drop of $ 10,360


Should we expect for the prices to continue to go down and what shoudl we expect in terms of value in about 2-3 years.


Any thoughts thanks

[JerseyVics]

I wouldn't take it personally... its their job to make the most money they can.

[Bo]

Yes..... it sucks!

However, since there are dealers out there selling loaded 3SRT8's for 33-35K (trying to clean out the lot)...... you're gonna take it on the chin.

I know I did...... I only got 2K more for my SRT8 than I did for my RT..... and the RT had another 6K miles on it......

--Bo

[Super T]

Nope, that's probably about right man.

[jim383]

most of the dealers go by what the auction is selling them 4 they never go by the kbb it is just a guide . our dealer just sold 2 06 srt-8 mag 1 for 32000 other 1 for 34000 which had all the options you could order. 1 that sold for 34000 they gave him 28500 for and it was the fleet manger personal car.

[formerice]

Or just keep driving it . My RT Magnum is at 105,000, heck I got too many more mods to do. I used to drive Toyotas. Guess what, when they get 100,000 miles on them Toyota dealer won't give you squat, that's why I'm driving 2 Dodges, my Dodge dealer gave me $4,000 more for my old Toyota!

[CVP33]

Domestic muscle depreciates quicker than Michael Jackson memorabilia.

CTS-V's - Sticker at $52K resale 1 year later at $35K
Corvette's - Sticker at $50K resale 1 year later at $40K
SRT-8's - Sticker at $47K resale 1 year later at $32K

I experienced the CTS-V and SRT-8 resale sticker shock on 3 occassions.

2004 CTS-V
2005 CTS-V
2006 SRT-8

[WA 2 FST]

Yes..... it sucks!

However, since there are dealers out there selling loaded 3SRT8's for 33-35K (trying to clean out the lot)...... you're gonna take it on the chin.

This is very true. I just bought a leftover '06 model 300C SRT8 (brand new car with 15 miles on it, never sold/titled) for low-$30s. A pre-owned one with low-average miles should be had for $28-29k and that is retail, so a $27k trade offer is about right, IMHO.

[Nixon's SRT]

Just have to work them alittle bit.

I just traded my 300c 2005, no options, no HID, no Nav/bluetooth, had boston 6 speaker set up and 29k on it. They offered me 21k on trade when I was purchasing my new 06 srt8 off the show room floor. I walked out of there getting 26,500 for my trade, and the srt8 for 33,500 out the door, and it has every option but rear VES. If they want your business they will work for it. Took me 5 days and about 20 calls from them with 10 offers to take it. Dealers know they have to remove these 06 srt's.

[Kobe24]

I know cars depreciate but it appears dealers are low balling the customer. This same dealership is selling a 06 Magnum with 10,951 miles no rear DVD listing it as "Rare" being an SRT8 Magnum for $45,000.

I know I would not except anything ander $32-34K

In the Seattle area they are still selling for premium's with dealer markups which means they are asking $50k loaded


Dealer prices in Seattle Area
Example Dealer (1) 2007 SRT8 minus Rear DVD $47,175
Example Dealer (2) 2007 SRT8 rear DVD $ 48,425

this is pretty consistent for all dealers in the seattle area, so after walking out the door just going off the prices they are setting (without any negotiating) you are at $50,000 with any tax and licensing and any dealer markups or inclusions




Scenario (a) I trade it in for $27K they do anything that needs to be fixed

lets say $500 tops to do a detail and any other basic prep work and maybe replace or fix windshield chip.

Dealer gives me $27,000 the spend $ 500 at most which means they are out of pocket $27,500. They turn around and sell the vehicle.. given the market and what they sell for and are still commanding in this area $38,000-$40,000
as a consumer could walk into a dealer and see (a) my car which has upgraded grille. wood kit, tinted windows, cold air intake, upgraded subwoofer and amp overhead DVD and rear DVD and see that they could save at 38-40 up to $12,000 over buying new. The dealers here can still ask a pretty hefty price for Used SRT8's (a) there really arent that many and (b) they are still asking a pretty hefty price for them new

Now given the fact that they are selling a Magnum SRT8 with less features for $45,000 lets just say they sell the 300C SRT8 in this case for $40,000

The customer comes in and sees a new one sitting there for $48,000 and sees the my loaded SRT8 with more features for $40,000. The customer sees this as a win, they save thousands over new with added features

The dealer has just won. Not only did they lowball the trade for 27,000 they also made a profit of $12,500 on the re-sale of the vehicle.

This is the reason why I ran out of the dealership and given the fact that they were charging $45k for a Used Magnum SRT8 blew me away.

I guess this is where the dealers make the majority of their profit is on trade ins and used cars as their really isn't a MSRP they are required to go by or many regulations as there are with New Vehicles.

Dealermarkups on hard to come by vehicles when they are first released really kill the trade in values of cars

[pir8magnum]

Its a double standard for sure - if its on their lot, its RARE and commands a higher price.

If YOU have it, its not worth squat and you'll be lucky to get whatever they give you.

Car depreciation is largely a byproduct of the dealer structure. I wish auto manufacturers would just sell direct to the public and eliminate the 'sales' part of the equation.

Then they could concentrate on 'service', which is sorely lacking right now.

[DriveATransam]

you can thank all the "screamin deals" that everyone gets now that they have been out for a couple years. that drops resale in the bucket. if the dealer buys ur car for 27K miles and lists it for 34K, willing to sell for 31K....why would anyone buy a used car for 31-34K when mr overstock down the street is selling a new one with 0 miles for just a couple thousand more, if not the same price?

[Darthvader]

The books are just a guide. They are based on many variables. The dealers base the value on what they bring at the auctions these days based on the fact that used car lots affiliated with larges dealers are dwindling. So they just pass them on to wholesalers who sell them at auctions that wind up at used car lots. My buddy is a dealer and we can log into the states largest autioneer and watch the values like a ticker tape.

So it would follow that the values would vary from area to area based on supply and demand. If a car has a high demand and a low supply the dealers with used car lots sell them themselves if no off to the aution through the wholesale house. So your car gets discounted to the bottom of the barrel so the wholesaler can even make a few bucks at the auction. Some used cars get sold 3 time before making it to a lot. Thats why it's hard to buy a car for the amount you are offered on trade. By the time it makes it to a lot more money has been dumped in it.
However,some dealers put them on lot's like that srt8 with a low price and make a fast 3k.