Featured Toyota can’t keep up with demand

IMHO; both Toyota & Honda build just shy of demand - that keeps customers coming back for more and allows everyone to profit. Except maybe the consumers; but when your top of the heap - why not??? This also keeps used resale values high too.

 

Most cars depreciate 10% or more the minute you drive off the new car lot. At 1% a year you could drive for decades and still have value. I'm sure you meant some other number.

My 2019 Toyota Rav4 hybrid cost $37.5k new. Could sell for $27k now. 6 years depreciation averages maybe 6% a year and that is good. Most cars depreciate more. Mine just happens to have the right color and accessories and in good condition with no accidents. And relatively low miles at 44k.

So the 1% makes little sense...I'd bet you meant more.

 

Well, yes. I did say I was exaggerating.

The point was, as a used car buyer Toyotas aren't a good deal anymore.

• If I were in the market for a $30,000 or more car, I'd buy a new Toyota.
• I ain't buying your 6-year-old RAV4 for $27k. Maybe someone else would, but not me.
• The average Toyota lasts between 15 to 20 years. So you could average that to 17.5 years. At that rate, if you drive a $37.5k RAV4 for 17.5 years then that's $2,146 per year of depreciation, assuming it's worth basically nothing at the end.
• But at that rate, it should be worth at most $24.6k after 6 years, and that's going by depreciation alone.
  • That next owner gets zero new-car warranties.
  • That next owner may have to shell out the money for a new HV battery before those 17.5 years.
  • Also possible a catalytic converter.
  • Depending on various factors, it's not that far fetched to say he might even have to put in a new engine block.
• At that rate, you might as well as spend that $2,146 per year on a new car. Or, if you can get $27k for a 6-year-old car, that's only $1,750. How is that fair for the used car buyer? I don't get why anyone would pay $27,000 for a 2019 RAV4.
• Contrast that with my 2013 Toyota Avalon. It was around $40k brand new. I bought it 5-years-old for a little over $15,000 with lower than average miles, good CarFax, good mechanic inspection report, and hardly any problems until now, except the radio. That's the kind of deal I'm looking for as a used car buyer. I don't think those exist anymore, not for a Toyota at least.

 

I had a 2017 Prius Prime and it offended my engineering design rules. So I traded it in for the 2019 Tesla Model 3 sitting on my driveway.

Bob Wilson

 

Huh:

• ~$500 - replaced underbody air shields due to road debris ~90,000 miles
• ~$1,200 - replaced front suspension control arms ~120,000 miles
• ~$1,400 - replaced failed coolant valve assembly ~140,000 miles
• ~$9,000 - replaced failed traction battery ~150,000 miles

Guess I'm doomed with my "NOT FOR SALE" 2019 Tesla Model 3. Looking for a 2024 Tesla Model 3 to replace my 2017 BMW i3-REx (that I just drove to pick up my supper pizza.)

Bob Wilson

 

What was so offensive? I was wanting to buy one back about 2017.