Is High Resale Value a killer?

[quicksandTRDPRO]

Wait..there is someone else floating around in Ogden besides me. :laugh:

There's plenty of us :eyebrows:

 

[hayde89]

Just to move this along at what point would you consider buying used vs new. This question honestly has me more curious than anything.

36k-37k
35k-36k
34k-35k
34k-33k
32k-33k
31k-32k
30k-32k

At what point are you incentivized to buy used over new.

 

[boyguan]

I am currently in the process of selling my 2016 Trail Premium but I am having a hard time determining how to price it. I have had it up for 2 weeks with zero calls. Couple local tire kickers I suppose. It is clean inside and out. It does have KDSS as an option as well. The only reasonings I can think of is perhaps it's priced too high because after all they have great resale value but many consumers are put off by that and would rather buy new. I know this was the case for me when I purchased but I never imagined I would have such a hard time selling. The truck is completely stock now and has 29k according to KBB I should be able to sell for a little over $36,000. I have it set at $36,000. MSRP is 41,000 which obviously it can be had for a little less because I bought at invoice at $38,800 not including taxes and fees. What do y'all think it should be worth and what are your opinions on why this thing is so hard to sell? This isn't my first rodeo selling a car but man all I am hearing is crickets

That is exactly why i bought new. I remember when it was drive it off the lot and 20% was lost. i calculated it to be about 2k per year of ownership. The earlier years maybe 2.5-3k.

 

[smangrum44]

Just to move this along at what point would you consider buying used vs new. This question honestly has me more curious than anything.

36k-37k
35k-36k
34k-35k
34k-33k
32k-33k
31k-32k
30k-32k

At what point are you incentivized to buy used over new.

This answer will obviously be different for everyone due to their budget and risk tolerance when buying used. I think ~32k-33k was my breaking point. Unfortunately, I don't have a logical breakdown to explain my reasoning there. I would just rather finance another 2k-4k to offset the risk of buying used and start with a brand new vehicle.

 

[YelloLab]

I can tell you the current average Manheim Auction price on a truck setup like yours is $33,500 (with 29K miles and avg cond. of 4.3 out of 5). Manheim is a dealer only auction and is what dealers like carmax use as a price guide to buy. This does not take into account options like KDSS but it usually won't make a difference on the "wholesale" level.

I just recently purchased a 2018 ORP w/ sunroof non KDSS because the used prices where so high on a 1-2 year old truck with low miles ...so for me it made sense.

 

[philsey]

I am currently in the process of selling my 2016 Trail Premium but I am having a hard time determining how to price it. I have had it up for 2 weeks with zero calls. Couple local tire kickers I suppose. It is clean inside and out. It does have KDSS as an option as well. The only reasonings I can think of is perhaps it's priced too high because after all they have great resale value but many consumers are put off by that and would rather buy new. I know this was the case for me when I purchased but I never imagined I would have such a hard time selling. The truck is completely stock now and has 29k according to KBB I should be able to sell for a little over $36,000. I have it set at $36,000. MSRP is 41,000 which obviously it can be had for a little less because I bought at invoice at $38,800 not including taxes and fees. What do y'all think it should be worth and what are your opinions on why this thing is so hard to sell? This isn't my first rodeo selling a car but man all I am hearing is crickets

Here's the first problem: You think your competition is a new one at 41,000 ... it's not, it's a new one at 38,800 or less, depending on negotiation, plus a new car warranty.
Hell, you're only $2k from new, less the warranty. A lot of ppl buy new-ish used cars, but you are priced too high.... but then you already know that.
Carmax is a good idea. That will at least tell you what a good wholesale value is. That, plus a cpl grand is what a dealer would ask.

 

[LaFJ86]

Just to move this along at what point would you consider buying used vs new. This question honestly has me more curious than anything.

36k-37k
35k-36k
34k-35k
34k-33k
32k-33k
31k-32k
30k-32k

At what point are you incentivized to buy used over new.

I paid 38.5 for my TEP, and I think at 32-33k I would have purchased gently used.

 

[hayde89]

Here's the first problem: You think your competition is a new one at 41,000 ... it's not, it's a new one at 38,800 or less, depending on negotiation, plus a new car warranty.
Hell, you're only $2k from new, less the warranty. A lot of ppl buy new-ish used cars, but you are priced too high.... but then you already know that.
Carmax is a good idea. That will at least tell you what a good wholesale value is. That, plus a cpl grand is what a dealer would ask.

I agree I am priced high but the only data points I am was going off are from true car and KBB. They vaulued it from 35 poor-37excellent so just off of that data I though I would throw it out there and see if it sells. The price is what the market will support according to supply and demand. So I threw out what I have been testing. But I will say while most of us got invoice on our trucks most do not so basing any estimate off of invoice is leaving money on the table. I am adjusting the pricing to see what happens but more over this has turned in to an experiment. If the car doesn't sell today, tomorrow or a month from now no harm no foul. I wont be hurt either way because I owe very little on it. BUt it woudl be nice to maximize the sales price and that is the reason for the thread. I work with capital markets and fixed income products as an anaylst so I am very comfortable throwing prices out just to see what the market will support. Thanks for the info. That is the plan but i though it would be fun to do.

 

[CRSTX]

You can probably sell it for that in California. You can always drive it down and fly home. People buy out of state why not sell out of state.

 

[Jeff_DML]

..I can think of is perhaps it's priced too high because after all they have great resale value but many consumers are put off by that and would rather buy new. ...

yeah that was me, I didn't even look at used 4runner when I got my wife's. I rather buy the exact combination she wanted with full warranty for a couple k more. But everyone is different and someone like my cousin would rather by used to save a couple of k.

GLWS

 

[bamma]

S
1. You are in a market with a TON of 4Runners available.
2. Seems like you are priced a bit high for the market:

https://www.autotrader.com/cars-for...,4RUN|Trail Premium,4RUN|TRD Off-Road Premium

Karl Malone has a certified for $36,480 with 10k fewer miles thanks yours. If I were shopping for a used 4R, I'd definitely go for the one with 10k fewer miles that is certified at the similar price...

A few others with similar mileage on Autotrader are cheaper too. Look at cars.com, KSL classifieds, autotrader, etc., and price the market. NADA and KBB are only guides. Have to see what others are listing before you know where you should be.


Good luck.

 

[bamma]

Just to move this along at what point would you consider buying used vs new. This question honestly has me more curious than anything.

36k-37k
35k-36k
34k-35k
34k-33k
32k-33k
31k-32k
30k-32k

At what point are you incentivized to buy used over new.

For a 4Runner, I would always buy new. My Land Cruiser was 50% off MSRP at 5 years old. That was worth it to me. My 5 year old 4Runner is still worth about 75% of what I paid. No sense in buying a used vehicle with unknown upkeep when new is not much more.

 

[bertfull]

I am currently in the process of selling my 2016 Trail Premium but I am having a hard time determining how to price it. I have had it up for 2 weeks with zero calls. Couple local tire kickers I suppose. It is clean inside and out. It does have KDSS as an option as well. The only reasonings I can think of is perhaps it's priced too high because after all they have great resale value but many consumers are put off by that and would rather buy new. I know this was the case for me when I purchased but I never imagined I would have such a hard time selling. The truck is completely stock now and has 29k according to KBB I should be able to sell for a little over $36,000. I have it set at $36,000. MSRP is 41,000 which obviously it can be had for a little less because I bought at invoice at $38,800 not including taxes and fees. What do y'all think it should be worth and what are your opinions on why this thing is so hard to sell? This isn't my first rodeo selling a car but man all I am hearing is crickets

Carmax will offer you less than dealer trade-in or wholesale value unless you purchase another vehicle from them. I've been in the car trade business for more than 15 years and can promise you that your best bet is to hold on to it for a couple more years or accept the loss. The vehicle was worth $5k less to dealers on the day you drove it off the lot. They know how much you paid for it based on the taxes paid shown on your registration and/or title. So, if you paid $38,500 for it brand new, it was only worth $33,500 to the dealers on that day. Now, you have more than 20k miles on it and can expect to receive quite a bit less. Sorry for the bad news...