Say BYE BYE to our resale!

The 2004 was allowed a *deduction* (subtract $2000 from your adjusted income), not a credit (subtract $2000 from your tax due). If you claimed a credit you should file an amended return, soon, before you get a fat letter from the IRS with red print on the envelope.

 

Wow!! I'd like to see that, you still can't SEE a prius on the lot around here.

 

Dr. Fusco is right. Although none of us can forecast what will happen to Prius values way down the road---say, 9-18 months---because sooner or later, Toyota supply WILL gradually catch up with consumer demand (but that's a complicated picture, influenced by gas prices among other things)---what you're going to see is a temporary BUBBLE. A "negative" bubble, if you will. And even then, it will not apply equally in all parts of the U.S., depending mainly on availability at local dealerships.

There's already plenty of evidence on PC threads that some people have been willing to forego tax incentives simply to get their hands on a Prius. Some people are ineligible for the 2006 credit because of higher income. And some people still don't even KNOW about the tax credit.

Don't panic. What's happening right now was predictable. The likelihood that your Prius will even regain its INFLATED resale value in a little over half a year is great.

 

Remax - do yourself a favor and never "invest" in stocks. If your approach to retirement investments matches that of your car "investments" then you will lose everthing...and ask if you can raid MY pension fund!

 

Cars are very rarely (if ever) a smart investment idea. Just drive it until the wheels fall off and smile - it's a good car.

 

I recall some investment advise from my younger days, "buy cheap cars and expensive houses". Worked for me.

Well, the Prius isn't exactly cheap, but I'm going to get one January anyway

 

Want a good investment in a car? Buy a 2006 Prius, take the $3000 tax credit, get HOV stickers. Then wait until you can't get the credit anymore and no more stickers are available to resell the car. Even with this, tho, you probably won't GAIN from the resale, only lose as little as possible.

 

Remax... Hurry, pump every dollar you can borrow into Tech stocks before the bubble bursts...

You're just as far behind the curve on that as you are with trying to drive a prius for a year and then get more back for it used than you paid new. Stupid idea to try it, and it didn't work.

Toyota is supposed to put 150,000 cars into the market in the usa this year. I think that alone will help with the supply problem. There are still 100,000 existing prius from the prior years... that will help with the supply problem... All that's left is for us to watch you depreciate off about $4000 this year. Have fun..

 

I'm with the farmer on this one: resale value only matters if you're gonna sell it.

 

I am actually more concerned about long term resale with my 2 prii, vs standard cars. I am planning to drive them for about 100K miles each... and assume the value is near zero... or close to it.

Normal cars do not have expensive batteries to replace... and I think that perspective buyers of 100K mile used cars will be leary of a potential repair bill that they cannot afford.

I do not like driving old cars... so I probably will not own the car beyond 100K miles. I have a 7yr/100K extended warantee, along with the 8yr/100K hybrid component warrantee.

If I assume zero residual value... then I will not be dissapointed at the end.

/Jim

 

Being one of those "drive into the ground" sorts as well, I agree too.

 

Really? I like driving my father's Studebaker and enjoyed the opportunity to drive a Model T (although I had to relearn about shifting).

 

Yes, the Prius will take a temporary, artificial, decline in resale value, but that time will be much shorter than most of us expect.

After the first of the year, when a majority of the general public learns of the hybrid tax rebate, the Prius waiting lists will soar - the Priis will be spoken for much sooner than the 60,000th Toyota Hybrid is sold . . . once again increasing the scarcity of the Prius.

Combine that with the expected return to higher gas prices in the middle of 2006, and you have the recipe for increased resale value . . . scarcity plus demand.

 

Once the credit is completely phased out for Toyota by 2007, it will be like it never happened. Besides, realizing the entire credit on your bottom line tax liability will vary for most. I would think that local/state incentives will have more of a resale impact for you. If someone can purchase a new car with reduced or no sales tax or get a state income tax credit, that will have a more lasting impact on potential buyers in your zip code.

 

This is gonna be hard to explain.... but here goes.....

I don't think it will hurt you if you don't sell for several years.

Its kinda like owning a stock and the stock value drops..many lose out by selling, when in reality, they haven't lost a dime Until they do sell!

If you own 100 stocks worth a total of 1000 and the stock drops to 9.00 a stock you think you've lost 100.00 bucks right?... wrong.. only if you sell!
Your stock value is a theoretical value that really never exist unless you sell!
Once the stock returns to 10.00 a share you break even.

In other words, if own a prius is worth 25K and now its worth 22 or even 20, that is only realized if you sell soon because all those who are in the market for your car "also" may have the means to pay a little more and get the new!
Yes, if you sell your 04 or 05 today, there will be little incentive to buy with the current 06 incentives! BUT if you wait for several years.. "like 5+ or maybe 8+ years", or even untill the tax incentive is all used up and not availiable any more....all the people in the price range of your older car will not be able to consider the new ones!

Another thought:
Of course this technology will fluctuate in value just like the stock market.. its a hot item! They are talking about halving the price of the hybrid drive which means that even the current 06 buyers may not be able to sell compared to the next ones coming out!

However, If the technology heats up too much, it will be like buying a computer.... no matter what you buy, you will loose out in a year or two as the newer, faster, more efficient prius's come out!
If that happens, all you can do is what you do about your old computer.... kiss it goodby and sell it for pennies and upgrade, or keep it and be happy.

Who knows if Toyota can keep a handle on this type of "tech inflation".
It will be according to who else comes out with what!

Intel was doing a pretty good job with thier chips, until AMD gave them a run for thier money!.. now due to competition, they had to crank out faster and faster chips for cheaper and likewise so did AMD. The poor sucker that gets caught in the middle is the customer that buys a computer only to have it outdated before his warranty is even out?

If our cars keep resale over the years... that will mean it is not evolving too fast. who wants too old of a technology when your talking about a prius?

We are already seeing hints of the next edition coming out will be with a bigger battery approaching 80MPG in the city?.. what will our 06 be worth when those some out?.. especially if the hybrid drive drops in price and they can make the more efficient prius for the same if not less than the 06 cost?

I'm not making you feel any better am I?... sorry! :huh:

The bottom line as I see it... either we enjoy and celebrate newer and newer technology at the risk our older model will be less desired and lose value, or it doesn't evolve much and we keep our value!

But back to the point.... once the 3100 tax credit is gone and used up.... your older car should be worth the same as it ever was?
The only thing that can bite all of us, is if they come out with even more tax credits later in the future!

But I doubt this will happen!... Toyota is already 125000 cars behind in thier orders! No one needs an incentive to buy anymore! Its already a very hot item!
And now that the cat is out of the bag, more and more people will want to buy!

Our value will "as always" be a balance of supply and demand.... both will be skyrocketing.. who knows in what balance? but probrably similiar to a hot stock... up and down and all around!

I never dread or regret buying cool cutting edge computer technology.. even though the price drops later.. I just enjoy it!...
I would never do without my computer for fear of its value will drop.... in like manner, I intend to enjoy the prius and deal with how the chips fall on its value later on.

All else fails.... I won't sell!.... its a very reliable car!.... It may be worth more to keep it!

 

You must drive hard and never change the oil for cars to break down after a year and a half. I keep cars 7 - 10 years with well over 200,000 miles and therefore have only had 3 including my 4 month old Prius. I don't understand when people either lease or turn over cars every few years. They must just have a twitch that makes them jones for a new car all the time. If you have stupid money to throw around that's fine but it makes far more sense to take care of a car and drive it 'till it dies. It feels great not to have a car payment ALL THE TIME! I haven't had one for 5 years and put the money elswhere.

 

The friendly yet near flame-quality of the replies in this thread does not surprise me, on this board. What else is a bunch of Prius fanatics going to say to someone who sells his car for a new one every year? Hey, let's put more cars in the landfills and junkyards, but let's make sure they are low-emissions cubes, yar!

;-)

Not going to get any sympathy here, no.

 

Like all used cars the Prius will loose value as time goes on. If you were only going to keep a car for a year, you probably should have leased. Every car my family has had was kept for at least ten years unless it broke before then and was too expensive to fix. I am actually counting on the current Prius loosing value in '07. People will sell their current Prius to get the new one in '08 or to switch to the hybrid Camry. The tax credit is not what will diminish the value of the Prius, it is the spread of hybrid technology. If you want to sell your current Prius and not take too much of a hit, sell around the middle of '06. If you want to buy a '04-'06 Prius, buy when the HSD Camry is launched and the updated Prius is announced (mid to late '07). Or you could just be insane and sell an '03 for $20,000. I could be wrong, but these are all things I consider when I go to a dealer.

 

hmm, I would say the same thing about any car, not just Prius

 

i'd say if you can sell it for more than your current loan balance (if you financed) you're doing well.

if you owe 25 and sell for 22 you're not in a position to be selling in the first place.

new cars are not a moneymaker, not even the prius. they depreciate. someone has to take that hit. if paying that money is too much for you, buy used and let someone else take the depreciation.

and for the record... toyotas have very good resale values overall. 87-91 camrys are still in such high demand they get awesome resale values for their age. especially the wagons.