Residual Values

[FL335i]

I've owned my truck now for 25 months and 52k miles. Figured I'd take a moment see how my purchase decision stacked up compare to if I had bought a F150, Ram or Tundra. All 2014's, with 52k miles, crew cab short beds, 4wd comparable trim to my LT. The old "what if" question...

 

 

Tundra - trade in of approx 30k Toyota did not have incentives at the time either. I believe it was right when the refresh came out. Similar situation to the Ford, starting at full sticker of mid 40's for what I wanted, figure a $40k sale price for a $45-47k truck (like the Ford). Putting this choice at $10k depreciation.

 

Silverado- Trade in of approx 26k I paid $37k for my truck. GM had IIRC $8,500 cash and I got the GM family discount. So I paid about 4k more compare to the RAM, still less than starting at full sticker on a F150 and doing the usual few thousand negotiation. I paid around 37k, putting this at $11k Depreciation.

 

F150- Trade in of approx 25k Ford did not have the Aluminum out yet, and in Aug of '14 Ford had zero incentives on the F150. Was ok with an older model truck but figured Ford would of had a good amount of cash on the hood to compete with the '14 GM truck, they did not... So I found Ford's very high priced when I was shopping. Guessing I would of been around 40k sale price for a 45-47k truck, putting this option at $15,000 depreciation.

 

Ram- Trade in of approx 22k. I had them down to $33,500k (and a free TV!). Depreciation of $11,500k.

 

There you have it. Looking back on my life choices. Seems like the Tundra really does hold it's value the best... it's worth the most out of the bunch by far. I don't think I did terribly bad being I had the GM family discount and GM cash incentive. I think I did the 2nd best option in terms of depreciation. But all the reports saying the Tundra is the best in class for residual values seems to be true. Still can't believe it for an old platform truck.

 

[qwank]

You are speculating final sale price. No incentives, who says they would even budge that much on the price? At sticker price depreciation is $15-$17K on the Toyota.

 

I wouldn't be caught dead in a Toyota.

[Silvern Sentry]

I agree with the person above pretty hard to compare after the fact. I get what you are doing and I in fact did the same kind of evaluation when purchasing by comparing the estimated over/under on the back end of the lease and my cost per year to drive each of the brands. Toyota was by far the most expensive per year at 9k and followed to ford by 8k . GM was substantially less about 6-6.5k. GM was definitely the best lease financial wise. These were only estimates I came up with knowing I put on very low miles and what used trucks with such mileage were selling for at the time, the risk to me if if used truck market bottoms out which is so low risk i felt safe with my conclusion.

[[email protected]]

You are speculating final sale price. No incentives, who says they would even budge that much on the price? At sticker price depreciation is $15-$17K on the Toyota.

 

I wouldn't be caught dead in a Toyota.

 

True:

Take his Chevy at $37K, add the $8500.00 back, plus what? $2K for Family Discount - - You have a $47,500.00 Chevy. So Sticker for Sticker - $17,500.00 depreciation for Toyota and $21,500.00 for the Chevy.

 

The real question is - in any case, how much does the Customer actually pay for depreciation? And/Or how much of that depreciation is the Selling Dealer going to pay.

 

FWIW,

Carl B.

[FL335i]

^ agree with the above Carl. I think what i'm doing is very realistic. Look at the ram, I actually negotiated on one and almost bought it. So I know for a fact my number was 33,500 on the Ram. And today if I go trade it in it's worth 22k. Kbb has always been very close to what I actually get for trade value. Assuming Toyota would not deal much, then the Tundra would by far not be the best deal. But it its worth the most out of the bunch today if it were in my driveway, that is a fact. Yes my truck is stickered around 47,500. So again, I think the moral of the story is not brand A vs brand B, but rather buying a good deal and figuring out how in 5yrs will the truck you bought be worth the most out of the bunch or cost you the least depreciation over 5yrs. Regardless of any brand loyalty, all of the trucks listed lost A LOT of money, period. Depreciation is really the biggest cost of a vehicle... I still stick to my time tested business model, buy a 2-3yr old vehicle and keep it as long as possible. That seems to be the best $$$ plan I've done. However on my wife's buick, we got it new for the going price of a 2yr old version so I couldn't pass that deal up. my truck is a long term business vehicle and in August of 14 there were no 2yr old K2XX's and I was not a fan of the older silverado's with 8.6" axles and drum brakes. Regardless, my plan is to keep my truck as long as possible. Superintendent I work with kept his last silverado 180k. I'm looking for 200k+ as meticulous as I keep my truck.

[camcamaro1991]

You really should blame poorly informed & uneducated customers & KBB is full of S!*t, the Toyotas are dated chassis, frames, & sheet metal, lack in design, they get poor fuel economy, most owners drive them into the ground and then trade or sale them.. or recycle. GM's you can pass down to your kids, or when you pass on your kids will fight over who gets the truck. Never seen anyone fight for Toyota.

 

I drive through my neighborhood and watch family's hand wash their GM trucks & SUV's, never seen a toyota owner hand wash his truck...

 

GM's really do offer the best powertrain, from boats, to helicopters, track to almost anything, putting a SBC or late model LS-LT engine in is like sex. Shoot I want to add 2 LSA/LT4''s added to my boat. I would love to straddle a 650hp LT4 in my waverunner, squeeze the throttle and HANG ON!

[FL335i]

camcamaro- I agree the Tundra is outdated. But other people's perceptions are our reality. Wrong right or indifferent. Toyota built a heck of a reputation in the 80's and 90's that's still with them. Again, not playing brand wars, but rather business facts. For whatever reason a $47k Tundra is worth $30k today and my $47k silverado is worth $26k. $4k difference in two years. That's a lot of cash if you have to work for it. Again, I did not negotiate on a Tundra like I did the Ram so I can only speculate the purchase price, but I know I did not have a family discount nor did Toyota offer $8,500 in cash either. Looking back, I'd say I made the right decision. I got the freshest, safest truck with a great discount combo and I wanted the truck. I think if I had bought a F150 for say $40k, if they came down that much, that would of been the worst decision. The Ram looks to be a wash compare to where I"m at today... Pay less worth less. Just interesting to look back and digest the data.

[Brianibew]

You really should blame poorly informed & uneducated customers & KBB is full of S!*t, the Toyotas are dated chassis, frames, & sheet metal, lack in design, they get poor fuel economy, most owners drive them into the ground and then trade or sale them.. or recycle. GM's you can pass down to your kids, or when you pass on your kids will fight over who gets the truck. Never seen anyone fight for Toyota.

 

I drive through my neighborhood and watch family's hand wash their GM trucks & SUV's, never seen a toyota owner hand wash his truck...

 

GM's really do offer the best powertrain, from boats, to helicopters, track to almost anything, putting a SBC or late model LS-LT engine in is like sex. Shoot I want to add 2 LSA/LT4''s added to my boat. I would love to straddle a 650hp LT4 in my waverunner, squeeze the throttle and HANG ON!

Ha! The GMs of today would not last that long to be "passed down to your kids". Nice try tho.

[camcamaro1991]

Ha! The GMs of today would not last that long to be "passed down to your kids". Nice try tho.

wanna bet?

 

My dad left me his 1997 Chevy 19 year old truck, still runs great! Its my daily driver. Like my 2016 will for my kids, 2016's are build a heck lot better & safer than any 1997.

[Brianibew]

wanna bet?

 

My dad left me his 1997 Chevy 19 year old truck, still runs great! Its my daily driver. Like my 2016 will for my kids, 2016's are build a heck lot better & safer than any 1997.

Funny thing is, I had a 1997 c/k 1500 short box regular cab that was a great truck, simple yet reliable. I owned a 2003 Silverado 1500 for 10 year, more complex than the 1997, but still fairly reliable, I then owned a 2014, the most unreliable and laughable vehicle I've ever owned. I've got family and a couple friends that have also bought into the new K2s with similar results that I had with it. You may get them to last the long haul, but you'll go broke trying to do it. Good luck my man.

[camcamaro1991]

Funny thing is, I had a 1997 c/k 1500 short box regular cab that was a great truck, simple yet reliable. I owned a 2003 Silverado 1500 for 10 year, more complex than the 1997, but still fairly reliable, I then owned a 2014, the most unreliable and laughable vehicle I've ever owned. I've got family and a couple friends that have also bought into the new K2s with similar results that I had with it. You may get them to last the long haul, but you'll go broke trying to do it. Good luck my man.

 

Its not luck, been in the business too long to know you never buy a first year new chassis.

[Brianibew]

 

Its not luck, been in the business too long to know you never buy a first year new chassis.

2014-2016 have had the same problems. Like I said, good luck.

[Donstar]

They "don't build them like they used to" is true when it comes to gm trucks. They keep getting better! Residual value, I believe, is mostly impacted by condition and current demand. If I'm looking for an older pickup, I'll take a stock cream puff over brand. I was walking through my GM Dealership lot yesterday, and noticed that the more "original" a vehicle looked, the higher the price. A lower mileage "customized" truck sells for less than a stock version of the same model!

[Brianibew]

They "don't build them like they used to" is true when it comes to gm trucks. They keep getting better! Residual value, I believe, is mostly impacted by condition and current demand. If I'm looking for an older pickup, I'll take a stock cream puff over brand. I was walking through my GM Dealership lot yesterday, and noticed that the more "original" a vehicle looked, the higher the price. A lower mileage "customized" truck sells for less than a stock version of the same model!

Residual value is influenced the most by the huge discounts some manufactures give just to be able to move units.

[f8l vnm]

only 1 problem the tundra is the ugliest truck out next to the titan. I do respect the toyos for their value and build but overall if I wanted a 10 year old truck I would get one.