Depreciation Factor on an 03---Help!!

[agodfrey]

I am looking at either an 03 or 04 EX AWD automatic with side airbags. With a little negotiation, I got the 04 dealer down to 19,700 w/dest, no options. We have not yet crunched numbers with the 03 guy yet, but I wanted to know how much to factor in for the deprecation to make it worth my while. A lot of you have more knowledge and experience than me, and was hoping to draw from that in order to make my decision. Does anyone know how much vehicles normally depreciate in the first year, etc??
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[Varmint]

It depends on the vehicle and where you are. For example, up in the Northeast, Subarus tend to hold their value quite well. But in warmer areas (where AWD isn't such a big deal), the same cars depreciate faster.

I'd suggest going to something like Edmunds.com or one of the other consumer sites. They often have software that will help give you a decent estimate.

Good luck.

[IN MY]

AAA.com has blue book for free. I found out about it yesterday and punched in my E. The retail value that is if I wanted to buy it at a used car lot was acutally more than I paid. I actually have fewer miles than I put in so I'd imagine my E would be worth even more.

[qualitydave]

I just got my new NADA book today and it list the 03 Element EX 4wd at
$19475 with a $150 deduct for miles starting at 25000.

[IN MY]

I guess I'm a little confused. It looks like I can sell my E and make money? Others here were able to get an 03 new for 17k.

[Michelle5480]

I just bought my E about 2 weeks ago from a dealer and I had to finance a total of 23.000 on an 03' with 26 miles. EX side air bags AWD. Hope I didnt get ripped off. :shock:

[psschmied]

Rule of thumb for all Hondas is that they depreciate by about 10% per year - compounded, not simple. First year is 10%, either way. For models with average defect rates, in perfect condition with less than 10K mi/year, this is a good estimate.

Because Honda can now build fast enough to satisfy demand for 2004's, an unsold 2003 E should go for 10% off its original invoice price.

[Michelle5480]

That sounds reasonable. Darn cars why do they have to depreciate. Oh well.

[psschmied]

Economics 101 - an object it "worth" what the market says its worth. Hondas depreciate slower than the average brand.

Vehicles are machines and have an expected life. They wear out. Their rate of depreciation is partly rational, and partly irrational, like the price of stocks. The only way that a machine can go up in value is if it is wanted and in short supply. If a car is popular, the manufacturer builds more.

The important thing in depreciation is to look at how long to keep a vehicle. Maintain it well, and if it isn't a lemon, the longer you keep it, the lower the cost of ownership. At around 125,000/ or 8 years old, the rate of depreciation becomes insignificant, as long as you can still get parts. If the car isn't popular enough to sell in volume, major repairs can cost as much as the vehicle is worth on the open market.

If you only plan to keep the E car for under 5 years, the 03 would probably be cheaper to own. Double-check the side air bags though, because it was a late year option. Most 03's don't have them, and they can more than pay for themselves in your insurance rates and resale value.

[Michelle5480]

I heard somewhere that Honda is considereing discontinuing the Element after 05'. If this happens wont our E's be like collector items? Like the 89 Toyota MR2 in excellent condition I heard is worth a pretty penny cause they only made a certain number of them.

I also think it would be cool if there was a way to make a convirtible E. I saw the PT cruiser in a convertible. Something to think about.

[IN MY]

I think you are correct Michelle. They are considering a convertable E too I heard, west coast first, similar to the Scion roll out for some reason. I guess they think they would sell fewer over here. There was just a report that sales for convertables in general are way down. I hope they make the E convertable before they stop production, if any of this is true.

[psschmied]

I don't know who starts these off-topic rumors, or what world they live in, but it isn't the real one.

A E convertible is a pipe dream. If you removed a significant portion of the E's roof, it would collapse in the center. there wouldn't be enough body left.

To build a convertible, you'd need to lose the rear doors conpletely, and build a roll cage. By the time you finished, it wouldn't be an E any moce. The most they could do would be make the fixed side glass panels removable, but that wouldn't make it a convertible, and I dlubt there is enough market for Honda to do this themselves.

Second, the Element is unlikely to be dropped. It made a substantial contribution to Honda's 2003 profits and unit sales, and has sold more unit than originally planned.

[Michelle5480]

Ok fine be pessimistic and live in your "real world"

Gee whiz, I didnt say for someone to go do it and produce it, it was just a simple thought is all.

If they dont discontinue the E than great.

Sorry if I seemed rude. Please dont hunt me down, I just realized we both live in Chicago. :roll:

[joerogg]

Just purchased a new 03. Paid $18,500 sticker was $21,300. I think I got a good deal?

[joerogg]

I forgot to tell you. It was a EX, and I paid $18,500 sticker was $21,300

[Michelle5480]

Did you get it with side air bags? That makes a difference in the price. I was looking it up cause I just bought an 03 too. Blue Book Price is 19,745.00.

I ended up financing a total of 2300.00 but that cause I live in Chicago. Just in taxes was like 1500.00 and financing was 2300.00

[joerogg]

No side air bag. I still think I got a great deal? I'm in the Saint Louis, Missouri area.

[Michelle5480]

You should've gotten it with the side air bags. The frontal crash test rating is good, but the crash test for the sides they did it without the airbags and it was pretty bad. Did it come with extras like the keyless entry or alarm system? That would definitely be a plus.

[psschmied]

I have car fatansies too, but being an engineer, they are always feasible, if not practical. Convertibles are tough to build well.

It looks like it _might_ be possible to build a roll cage around the inner area of the roof, down beind the rear edge of the rear doors and across the top, and down around the front edge of the front door openings. The outer ends of the dash would need to be channeled. That would permit most of the top of the Element to be removed. With a good deflector at the front edge, the blunt front end to the Element would make it possible to drive with the top off. If the top section wase narrow enough it might slide down trcks at the rear and store above the spare tire well. Kind of like a tambour door.

I'd settle for a fixed, structural, transparent roof section in the front and an inner removable liner. That would be a lot simpler.

$18500 TVP on an EX vs 21300 MSRP is a good price. My EXS/AWD/auto cost $20212 with TVP vs 21850 MSRP , so we did about the same.