I took a test drive and really like 2005 Prius. I checked the used car prices of 2003 and 2004 Prius in Edmunds.com As far as I know, 2003 is the last year for 2nd generation and 2004 is the first year of 3rd generation Prius. The price difference of the two is ~$7000.00 which seems more than the price difference between old and new generation of gasoline only cars. Is the price gap big because of great improvement of hybrid technology between the generations? What is the first year of the next generation Prius? I ordered 2005 Prius and have a week to cancel it. If I decide to get a 2005 Prius, is it a good idea to sell it just before the new generation comes out to avoid the big depreciation. Any advices and suggestions are welcome.
It all depends on how long you plan to keep the car. You should know that just by buying new you're going to take a depreciation hit. I think a big reason for the classic Prius being lower in value is because of the HSD system. It's a real improvement over the old THS system. And let's face it, the 2G is just more stylish and functional. If you don't want to take a hit on depreciation, buy a used 04 or 05. Some people tend to say the car may APpreciate. This is due to the high demand. I could have turned around and sold mine at a $5000 profit the day after I got it. There are still waiting lists out there, so the value may go up for now. I think it's going to be a while before they do a big redesign anyway. And I think HSD will be around for a while too, since they're starting to stick it in other models. Honestly, I wouldn't worry about it too much.
04,05,06 then 07 08 and the new one should be here by 2009. Problem is, Toyota is cutting short the life cycle of several of their models. The Sienna is getting updated a year early and so is the Prius. So now we have to see whether they'll stick to 2009 or will move it up by a year to 2008.
Very true. I bought the Prius in order to drive it, and am not worried about how much it'll depreciate. Are you buying it as an investment or transportation?
Re: Depreciation of current one when new generation comes ou May be I think too much as my wife said. I never considered buying a car as an investment. ^^ I was just wondering about the big drop of resale price of 2003 Prius after 04 became available. New technology usually has the steeper curve of technological improvement than the old technolgy has. I guess that the technological advance relects on the resale price. Once I get a Prius, I won't too much worry about the resale value and just have a fun. I bought a 2001 SLK 320 that was a new thing then, and the resale value is the half of the original now, but I am very happy with it: very unique car with a hartop convertible, a powerful engine and great handling. As long as I don't sell it, the resale value doesn't mean much. There is always a fear to dive into the new technology and is a cost to enjoy it when others still use the old and the more mature one. Saving on gas, having fun to use a new technology and reducing the pollution are more than enough reasons to buy a Prius to me. I appreciate your advice.
I have yet to realize a depressiation for my car. I still love it just as much as the day I bought it.
I have yet to realize a depressiation for my car. I still love it just as much as the day I bought it.
Re: Depreciation of current one when new generation comes ou Oh, well, I apologize. I was just surprised by a question about selling even before buying. Yes, as new technology comes in, the old stuff doesn't sell as well. Sometimes that's a good way to pick up a bargain. I'm prepared to take a hit when I sell, but as I'm planning to drive it into the ground, that isn't a problem with me. In fact, I got rid of my old car by donating it to a charity. There was absolutely no way I could recoup my finances with that car. My father has a Studebaker and it's now above the original purchase price.
I also agree. Cars are consumable items, like chewing gum, only with a much longer lifespan and a whole lot more utility. If you buy new and keep the car till it drops it will have no resale value, only salvage value, and you have gotten the full worth out of that purchase. The longer you can keep the vehicle, and the more miles you can put on it, the better the vehicle, the greater the value you have received out of that purchase. In short, vehicles are not investments, they are capital expenditures. Since they do not (usually) appreciate they are not an investment. Investments are more likely to appreciate than depreciate, therefore they are investments. Something which can be used up and wear out is a capital expenditure, because it looses value, and will need to be replaced at some time in the future.
i personally hope that my car becomes depreciated to nothing. then it wouldnt be valuable and i wont have to worry about it being stolen. the car's value is only important to someone who wants to get rid of it. that is how i know you are not yet an owner. after you get yours and drive it a while, you will realize that you will not care what its trade in value is either
Re: Depreciation of current one when new generation comes ou I think there are several reasons for a significant difference between the value of the 1G Prius (01, 02 and 03 in the US) and the 2G Prius (04+). The 1G Prius was a compact model, the 2G is a somewhat larger car and is categorized as a mid-size car. The 2G Prius is more powerful than the 1G. THe 2G Prius gets better gas milage than the 1G. And while the 1G was a cute, but fairly nondescript little compact that could easily get lost in a parking lot full of other compact models, the 2G is a unique design with a distinctively edgy look. I became interested in the Prius over two years ago, but wasn't interested in the 1G because it was too small for me and plain looking. I determined very quickly after seeing the website preview of the 2G that it would be my next car, but that I would have to wait a couple years to do so.
i have a basic pakage Prius and mine doesnt make a sound when it locks other than the sound of the locking mechanism clicking. there is no other audible sound and that is the way i like it.
