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value of purchasing 2004 vs. 2005

Discussion in 'Gen 2 Prius Main Forum' started by betshsu, Jun 19, 2004.

  1. betshsu

    betshsu Member

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    It's really close to the end of a typical car's model year, and despite no official announcements, I'm guessing the 2005 Prius will come out at the end of the summer. So do you think there is a big disadvantage in terms of value of the car in the future in buying a 2004 model at this point rather than a 2005? Particularly if you're scheduled to possibly get a car in August? I know there won't be any big differences between the 2004 and 2005 model, but with a typical car, the older the model year the less it is worth when you try to resell it. At the moment, the Prius isn't your typical car, but who knows in 10 years.

    I didn't think I cared (I'm scheduled for a 2005, but if my dealer is really getting as many cars in the packages he says he is, I think I could get a car in the next two months), but I'm also not desperate for a new car (ie, my current car is not on the verge of breakdown). So would it be better for me to hold out for a 2005 even if I'd rather have my new toy now :mrgreen: ?
     
    #1 betshsu, Jun 19, 2004
  2. jamarimutt

    jamarimutt New Member

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    I terms of resale value, it makes sense to wait for a 2005 if you feel you may want to trade in your car in 2-3 years. As the years pass, the one-year difference becomes less and less important. If the msrp of the 2005 Prius is higer than the 2004's, the resale value at five years may be for all practical purposes identical for both cars.
     
    #2 jamarimutt, Jun 20, 2004
  3. drbob

    drbob New Member

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    I would think that there would be a price increase in 2005. And I'm not 100% sure on this, but doesn't the tax credit drop from $1,000 to $500 next year?
     
    #3 drbob, Jun 20, 2004
  4. Tempus

    Tempus Senior Member

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    The Tax Deduction is based on the Calendar Year, not the car Model Year, so if you buy a 2005 Model Prius in the year 2004 you are still entitled to the $1500.
     
    #4 Tempus, Jun 20, 2004
  5. 8AA

    8AA Active Member

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    And the tax deduction is going from $1500 to $1000, not $500. In calendar year 2006 is will be reduced to $500.
     
    #5 8AA, Jun 20, 2004
  6. rocketman7

    rocketman7 Junior Member

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    Also note that it is when you actually take delivery of the car that's important. If you get the 2005 model in 2004 then you get the $1500 deduction - if you get it Jan. 1 2005 then it's $1000.
     
    #6 rocketman7, Jun 23, 2004
  7. bruceha_2000

    bruceha_2000 Senior Member

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    I believe Dianne said there will be a price increase, not huge but there will be one. No way to calculate the potential difference in resale 'gross' without knowing the price of both up front.
    I'm not at all surprised that they are moving the price up some. Given the lousy $$ to almost any other currency rates, Toyota isn't grossing as much per car now as they were in October at MSRP. Gotta cover those production costs!
     
    #7 bruceha_2000, Jun 23, 2004
  8. Tempus

    Tempus Senior Member

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    The Dollar Exchange Rate isn't only a Prius issue. All foreign cars would be affected, but it is certainly a consideration.
     
    #8 Tempus, Jun 23, 2004
  9. Brian

    Brian Member

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    The 2004 Prius will always hold that 2004 Car of the Year sticker. The 2005 might not get that place again.
     
    #9 Brian, Jun 23, 2004
  10. hdrygas

    hdrygas New Member

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    I faced a similar situation several years ago and discovered that the credit union considered the earlier model as a used car and charged a higher interest rate than the later model. This was a bit later in the year October. I have no idea what they are doing today that was 10+ years ago. That would be a factor for me.
     
    #10 hdrygas, Jun 23, 2004
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