2013 Resale value

I was reading a post that went into the issue of looking at a car from an investment standpoint and resale value. The point people were trying to make was that you don't care about resale value because a car is not an investment. I agree that a car is not an investment, but as to resale value . . .I sold my 2013 double cab a couple of weeks ago for 500 less than what I bought it for after owning it for a year and a half. If that isn't a statement about strong resale value I don't know what is.

 

Yeah, I've seen some '11s that goes for almost the same price new

 

That is why I purchased new when I got mine. I was looking around and I saw 4X4 Tacoma's with 40,000 miles selling for darn near what I paid for mine new. 4X4 Tacoma's are probably one of the smarter vehicle purchases.

 

When I was waiting on my truck to be prepped for delivery I walked onto the used car lot and was amazed at the asking price on the used Tacoma's. All the used Toyota's on the lot seemed to hold value.

 

I bought my 2006 DC/SB from the dealer for $24,000 with 4000 miles on it in 2006, I traded it in 2013 with 175,000 miles for $11,000. ~50% depreciation in 7 years with 175,000 miles, I'd take that any day.

 

Yea when my 10 4 banger AC got hit last November I got 500 less than I bought it for. And even though I only had it 10 months I had put close to 30k on it since then!

Pretty much the reason I ended up in A newer taco in the first place. Originally was planning on getting something in the 01-04 range but they were going for 11k-13k with 150k+ miles! Crazy resale values

 

In Feb, my 05 SR5 4x4 Access Cab 4.0 6 speed with 50k on it was hit head on and totaled.
I paid $12,500 for it a few years ago and felt like I did really well on that.
Trying to find a truck with similar mileage on it meant I had to buy ~2010...
Those were trading for about $25,000 around here.

So, I bought a leftover 2013 DCSB 4x4 auto for $27,000 and felt like I did pretty well with that looking around at other current values.

I couldn't find anything in the same $12k I paid a couple years ago with similar mileage and options and all.

 

It's not even limited to just Tacomas, seems like the used csr market in General is very volatile. Used prices for late models are high, even to the point that it makes no sense to buy used with miles.

 

"I sold my 2013 double cab a couple of weeks ago for 500 less than what I bought it for after owning it for a year and a half."

I'm thinking that maybe you're forgetting the fixed costs of buying. Maybe not, but sales taxes and property taxes (if you have them) on a 2013 cost $2000-$2500, maybe even $3Gs. Not to mention that--unless you bought it outright--you mostly paid on the interest for the year and a half you had it.

People also call real estate an "investment". Generally speaking, that's only true if you buy outright, and are collecting rent. A mortgage (debt that you're paying to service) is the opposite of an investment, unless you're the bank collecting the interest.

The word "investment" gets tossed around by folks who want something shiny at any cost, as a means of justifying purchases, debt, etc.

So, I'd be careful of taking any "investment" advice off the interwebs.

edit: oh, but yeah. I bought my 2004 in 2009 for $12,500 and traded it last Oct for $11,500. Lots of moving financial parts in that deal, though. They do tend to hold value.

 

Just wanted to clarify since you stated what you did above.

"Only" is a very strong word

The first house I owned I paid 150k, the mortgage on it was about $1,300 a month and yep most went towards interest (interest is tax deductible BTW). I sold the home 2.5 years later for $315k, wouldn't you consider this an investment?

 

As I referenced in my initial comment, another post was using the term investment - I only used the term to say a car is not an investment. The gist of my comment was that I sold the truck for 500 less than I bought it for, that is all.

 

A tacoma is not an investment, there are some cars that are but not a daily diver, bread and butter truck like a tacoma. It holds it's value better than others which helps to keep/build net worth (different from investment!) which is great too. My house turns into an investment when I sell it because it's up 30% from when I bought it in 2011, however I would have to buy a new one at a higher price as well so it's questionable..., right now it's just part of my net worth and helps me build up net worth better than renting a place of similar size and piss away money...I say right now because if the housing marked would crash tomorrow it would eat away my net worth.

Anyway, depreciation is the biggest factor in cost to own, especially in the beginning so the tacoma does a good job keeping that cost in check.

 

Agreed. If you had somehow sold your tacoma for more than you purchased it for, then it would definitely be an investment. Or if your business/line of work necessitates a pick-up truck as it would be working capital. Many mis-use investment, but same is true for ironic and metaphor. I blame the schools. Anyways.... sweet job on the resale value!!

 

I disagree that taking out a mortgage is not an investment. Here is the definition from dictionary.com:

Investment - "the investing of money or capital in order to gain profitable returns, as interest, income, or appreciation in value."

http://dictionary.reference.com/browse/investment

Don't you think investing money into a mortgage would gain profitable returns down the road when you sell the house, compared to renting and flushing your money down the toilet?

In 5 years of home ownership with a mortgage I have built up about 50k in home equity that I would otherwise not have. (That is home equity minus expenses I've put into the house during those 5 years) That 50k will be a profitable return to me! Not to mention the likely increase in property value that has occurred on top of that.

 

You can't say that if you sell for a profit it's an investment, and if you sell for a loss it's not an investment!

It's an investment based on what you were originally planning to have happen. If you put money into a stock with the expectation that it's going to increase, then it's an investment weather you sell down the road for a gain or a loss.

If you enter into a home mortgage with the expectations that you will build home equity or increased property value, above whatever your interest and maintenance expenses are, and gain a profitable return then that is an investment in my book.

 

Made $500 when I sold my 2011. Crazy shit right there. Of course, I saved $1000 when I got it because I had just gotten my Bachelors degree. Minus that, I would have only lost $500 aswell.