Used Prices

[OverTork]

The dealer where I bought my car has a used one on the lot identical to mine, even has about the same miles on it. It's a 2005 Salsa Red, package #4 with 15,229 miles. They are asking $25,980. I'm going to stop in there when it's gone and ask what they finally took for it. Are they holding they're value that well where you're at?

[Springtime]

<div class='quotetop'>QUOTE(OverTork @ Apr 1 2006, 06:12 PM) [snapback]233487[/snapback]</div>

The dealer where I bought my car has a used one on the lot identical to mine, even has about the same miles on it. It's a 2005 Salsa Red, package #4 with 15,229 miles. They are asking $25,980. I'm going to stop in there when it's gone and ask what they finally took for it. Are they holding they're value that well where you're at?
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Anyone who does their homework will realize that you could get a 2006 pkg #6 ( roughly equal to a 2005 pkg #4) for about $26K. With the tax credit of $3150 the cost of the 2006 is down to $23K. So, no I don't think the value of the car is anywhere near $26K.

Factor in for a private sale that you can't offer financiing or accept a trade in on this car and the price drops even lower for a private sale - unless you are in an area where 2006 models are not available.

Of course there are a lot of people out there that don't do their homework - so someone with poor credit and a clunker to trade in might actually pay that much to a dealer who is willing to finance the purchase at a 12% interest rate.

But, if we assume that Prius owners are a little bit smarter than the average car buyer ( and they qualify for the fed tax credit) - no I don't think it is worth $26K at the moment. After the tax credit expires you may see the resale value go up a bit to maybe $24K, but at the moment I think it would have to be down around $22K to be a better deal than buying a new 2006.

Springtime