Forbes top ten residual - Prius not on the list

The article lists these:

• Audi S5
• BMW 1 Series
• Dodge Viper SRT10
• Honda Civic Hybrid
• Infiniti G37
• Jeep Wrangler
• Mini Cooper
• Scion xB
• Volkswagen New Beetle Convertible
• Volkswagen R32
• Scion xB

Style was listed as one of the criteria. Maybe they think the Prius isn't stylish and so it was disqualified.

 

Always thought that guy Forbes was a jerk. Running for President on "simplifying" income taxes. Trying to save himself a few hundred million.

Prius is the top car in the market on resale value. Mine is currently worth 20% more retail than what I paid for it. No other car can match it, Mr Forbes.

 

The Prius is the first new car to considered an "investment."
Consider a traditional car lease where you pay to use the car for 36 months, then give it back to the dealer. Now consider that if you bought a Prius in 2005, you could have driven it for 36 months, then sold it for MORE than you paid for it!!! I'd like to see you try that with any of the cars on that list. Good luck!

 

That's weird. When I click on the article, it gives me a different list (Forbes actually ranked it by "Residual value after 3 years"):

10. Volkswagen New Beetle Convertible (55.8%)
10. Audi S5 (55.8%)
9. Nissan Rogue with all-wheel drive (56.4%)
8. Honda Civic Hybrid (56.8%)
7. Scion xB (57.8%)
6. Honda CR-V with all-wheel drive (57.9%)
5. Volkswagen R32 (58.8%)
4. Jeep Wrangler with four-wheel drive (59.0%)
3. BMW 1 Series (59.6%)
2. Infiniti G37 (60.0%)
1. Mini Cooper (62.7%)

OK, first off, I could have sworn the Nissan Rogue was a new model. I remember a coworker talking about it when she wanted to buy a new car and I remember seeing their commercials touting "the all new Nissan Rogue." So I looked it up. The Nissan Rogue was "released September 2007 for the 2008 model year... [It] made its debut at the North American Internation Auto Show in Detroit in January 7, 2007." source: (Nissan Rogue - Wikipedia, the free encyclopedia)
There's no conceivable way Forbes got an accurate 3-year residual value for the Nissan Rogue which is in its debut year.

Where do they get these writers...

 

I agree, They are using residual values that banks are assigning for leases. These have no bearing on reality. Both the Rogue and the Audi S5 are new models for 2008.

Lots of companies are getting stung by leases right now because they overinflated the residual values at the front end. I have a 2004 volvo which sticked for $42,000 and they gave is a $25,000 residual after 4 years!! That almost 60%. I took the car to car max a year ago (3 years into the lease) and it was only worth $21,000 at that time. With everything going on with SUV's now, I would be surprised that when the lease is up in 4 months if the thing is even worth $15,0000.

But I guess that's the beauty of a lease I can walk away without that lose.

And roll into my second prius in the family, a black with bisque package 6 on order...

 

most stuff written by the press is faulty when it comes to numbers.
check most articles in a newspaper - you can find illogical math in a few minutes usually.

 

A friend at work just traded down his 06 with only 17K for a less expensive car which is saving him about 60% on monthly payments (but only getting 25/33mpg EPA).

While not criticizing his financial calculations (since everyone has different priorities), I was shocked when he said he thought he had a pretty good deal when the dealer offered him $2,500 less than what he paid for the Prius.

I'm pretty sure a used Prius with only 17K miles can command a pretty high premium these days. I showed him one on Carmax with 22K that was asking for $28K. He wanted to cry...

 

Maybe the computers can't deal with a residual value above 100%!

I'm betting the Civic Hybrid is doing better than that nowadays (love my Prius!).

 

I don't think any mass-produced car can be considered an "investment". Even with the Prius. This is a 'bubble'. Once gas prices go down or that Mississippi plant goes online you will see your used Prius resale value plummet. This is a known event (the new Prius plant). When supply meets demands the "investment" group on this forum will become all but silent. It's going to happen... Just the question is when.

Whereas a true investment car you know will only go up over time. Those are classic cars where the supply chain has ceased. That's an investment. The Prius is just a fluke.

 

I understand as to why the Prius has low residual value. I "blame" Toyota Financial Servces in conjunction with Toyota Motor Sales, USA Inc.
for disclosing such a "low Residual value" for the Prius, to the various publication based on their ( Toyota) Lease residual guideline.

Most manufacturers do set their vehicles residual value as high as possible in order to buy market share and entice public to come in to their "Brands" but market share gained now, will hurt that manufacturer in the future when all this leases comes back. _The market value_ is not there. I remember, Nissan USA used to give lease deals of the weekends for years but when those vehicles came back, had to have $hundread of millions$ ready to amortise excess market value residuals!

This is a sample taken out from Toyota Financial assignated residual value.

It is artificially lowest residual future value. a 5 years "wholesale" of 37%?
Toyota Financial has taken a Big Hit with their leases in the past. So it won't repeat same mistake again. We the _Dealers_ do bit way much higher $ by thousands when these lease terminated vehicles goes to toyota dealer auction although.
So you pay more now (monthly payment) and pay less later! _Capital Gain_! Buy those lease Prius and take the appreciated difference money to the bank!

Model Number: 1224E Dealer Total
Vehicle Base Model ..........................:$ 22875.00
50 State Emissions .........................
Includes: Cruise Control, ..................
Heated Outside Mirrors; 15" Alloy Wheels ...
with Trim Ring; Tonneau Cover; Seatback ....
Pockets. The price of this option is .......
included within the base vehicle MSRP ......
above. .....................................
Package #6 Includes: Leather-Trimmed Seats . 4550.00
and Steering Wheel; Voice-Activated DVD ....
GPS Navigation System; JBL AM/FM 6-Disc ....
CD Changer with 9 Speakers, Aux Audio ......
Input Miniplug, MP3/WMA Playback ...........
Capability, Satellite Radio Capability, ....
and Hands-Free Phone Capability via ........
Bluetooth; Vehicle Stability Control; ......
Backup Camera; Smart Key System; ...........
Anti-Theft System; Auto-Dimming ............
Rearview Mirror with HomeLink; High ........
Intensity Discharge (HID) Headlamps; .......
Integrated Fog Lamp. .......................
Carpet Floor Mats & Cargo Mat .............. 199.00
Rear Bumper Applique ....................... 69.00
Wheel Locks (Alloy) ........................ 67.00
--------- --------- ---------
Total Accessories ...........................: $ 4885.00

Destination Charge ..........................: $ 720.00
--------- ---------
Total Msrp.......................................: $ 28480.00
Residual Values
--------24 ------36--- ---48------ 60
------- --- ------ ------- -------
STD $16,955 $15,354 $12,995 $10,479 (15 K year)
24 mos N/A $15,811 $13,453 $10,936 (12K year)

 

It's cool and all I can sell my car for more than I paid for it. But if gas is truly going to $10 in the near future (doubtful), would you ever sell it? Thus how could it be an investment, unless you intend to sell it? What are you going to do... Walk to work? Most of us need our cars to get somewhere, like work.

It's the same psychology that our market is in right now with the Housing Crisis. People feel poorer because their homes are worth less money, thus they cut back consumer spending (one of many reasons, granted), yet are the vast majority of American's going to run out and sell their home? Nope. They just feel poorer.

I think the far more logical picture is gas prices are going to ebb and flow but with an upwards trend higher. For example now that gas is $3.70 a gallon here in Iowa all my SUV co-workers are back to their old traveling habits. They are now planning late summer vacations. People will get use to it. With only lower income brackets being ravished (for another topic).

Again, never buy a car that's mass produced, as an investment, unless you are planning on buying and selling them 'rapidly' based on market conditions. Sounds like then you would be a 'day' trader on cars.

In the long run all our shiny cars will be almost worthless in 12 years, and I can almost guarantee you will not get even close to sticker no matter how well you took care of your car. Contrast that with a House... In ten years - historically - a house will be worth more.

Cars are bad investments.

 

I don't think there are any of us who look at our Prii as an investment. It's amazing that the resale value is as high as it is, but I think anyone excited enough to be on this site is unlikely to have bought a Prius planning to sell it immediately.

Iowa has $3.70 gas? Wow! I did see one budget, cash-only station here at $3.85 this morning but most are still at $3.90. And given that they still have to pay $147 a barrel for the oil they bought last month for delivery later this year... I don't think we can plan on $3 a gallon this year. I am surprised about the increased driving of SUVs in Iowa. Not around here... of course, things have been going fairly well in Colorado. Most of the reaction is not desperation because of gas prices but anger. Most folks can afford it at $4, they just don't want to. Unfortunately for Sen. Obama, most Coloradans seem to be blaming the Democrats for not drilling for oil off Calif and Fla. Of course they are opposed to oil shale development and drilling for natural gas on our Roan Plateau, but OIYBY (Only In Your Back Yard) seems acceptable to many of us.

 

Here is the latest CarMax quote for a 2005 Prius with 25,000 + miles, and I assume package 4 (no leather).

$25,998!

I'm pretty sure I paid less for mine new!

And, I've been shopping my 2005 Prius and am on the list for a new 2009/2010 Prius. I am #4 on the list at my dealer.

The "other" dealer in my area quoted me $16,000 for my car (35,000) miles. I laughed in his face!

 

Here is my 1997 TwinTurbo 6 spd Supra. After 11 plus years, this is when new and now Kelly Blue Book says: Roughly $10k devalued but if I keep it then future value can be as high as when new 11 years ago.

1997 Toyota Supra Twin Turbo 15th Anniversary Special Edition 6 Speed Manaual.
Model Number:
2383A
Serial # : V0039707 Model Description: SUPRA
TURBO Category
..........: H Year ............:
1997
Selling Dealer .... Interior Color ..: LA21
Ship Date .........: 03/28/1997 Exterior Color ..: 06P3
Retail Date .......: 06/30/1997 Body ............: 3-DOOR
LIFTBACK Date of First Use .:
06/30/1997 Number of Cyl ...: 6
Fleet .............: NON-FLEET Engine Number ...:
2JZ0531727 VIN .............: V0039707
Ignition Key.....:
N/A Accessories .....: FE
LE
Retail Dealer Vehicle
Model ....................: $ 49.900.00
MECHANICAL: TURBO,24 VALVE, VVT-I, EFI ENGINE 6-SPEED MANUAL TRANSMISSIONTRACTION
CONTROL SYSTEM4-WHEEL INDEPENDENT DOUBLEWISHBONE SUSPENSIONSPEED
SENSING PROGRESSIVEPOWER RACK AND PINION STEERINGANTI-LOCK BRAKE SYSTEM
(ABS)POWER 4-WHL VENTD DISC BRAKESBRAKESLIMITED SLIP
DIFF.235/45ZR17 FRONT TIRES255/40ZR17 REAR TIRESSAFETYDRIVER
AND FRONT PASSENGERAIR BAGS (SRS)3-POINT SEAT BELTS WITHALR/ELR
PASSENGER BELTSSIDE IMPACT DOOR BEAMSEXTERIORREMOVABLE SPORT
ROOFPOLISHED ALLOY WHEELSINTEGRATED PROJECTOR FOGLAMPSDUAL
COLOR-KEYED POWER MIRRORSFRONT & REAR SPOILERTINTED
GLASSEXTERIOR & INTERIOR LIMITEDEDITION BADGESCOMFORT &
CONVENIENCEPOWER SPORTS SEATLEATHER SEAT MATERIALPREMIUM
ETR/CASSETTE/CD WITH7 SPEAKERS W/POWER &DIVERSITY
ANTENNAVARIABLE INTERMITTENT WIPERSPOWER WINDOWS AND DOOR LOCKSTILT
WHEEL/CRUISE CONTROLAUTOMATIC CLIMATE CONTROLTHEFT DETERRENT
SYSTEMLEATHER WRAPPED STEERING WHEELCARPETED FLOOR
MATS
Retail Total $ 49900.00
=======================================================

15th Anniversary Special Edition 97 Twin Turbo 6 speed manua

Retail Breakdown
Kelley Blue Book
May-Aug 2008

May-Aug 2008 Value Kelley Blue Book®
1997 Toyota Supra Limited Edition Turbo L'Back 6 speed manual. 2D.................................... $32,500

6-Cyl. 3.0L Turbo........................
Included
6 Speed Manual........................... $2,300
RWD......................................
Included
* * * Equipment * * *
ABS (4-Wheel)......................... 65 Air Conditioning...................... Included
Alloy Wheels.......................... 35 AM/FM Stereo.......................... Included
Cassette.............................. Included Cruise Control........................ Included
Dual Front Air Bags................... Included Leather............................... 100
Power Door Locks...................... Included Power Seat............................ 35
Power Steering........................ Included Power Windows......................... Included
Premium Sound......................... 35 Rear Spoiler.......................... 35
Single Compact Disc................... 135 Sport Roof............................ Included
Tilt Wheel............................ Included
Fuel City/Hwy 18/23 MPG
Retail Value without mileage.................... $35,240
Mileage Adjustment(53300) miles................. $4,150
***Total Kelley Blue Book Retail Value***( $39,390.00 )

 

So far well in line with my previous statement:

"Twin Turbo 15th Anniversary Special Edition 6 Speed Manual"

In 10 years from now there will be a glut of Prii on the market that will in general not be that "special" (this is a good thing just think of a world where Prius is more popular than the Camry)... How many 15th Anniversary Special Editions of the Prius is Toyota cranking out?

I agree with the general prevailing wisdom of the board. Don't buy a Prius as an "Investment" tool. Buy it because of the environment, National Security (less oil), cool factor and saving on Gas.

 

Another thing on the value of a used Prius: If you check Kelly's blue book, it is the retail price that is appreciating--not the trade-in or wholesale price. The latter is actually decreasing like any other car. Which doesn't mean you can't get higher than the blue book trade-in for your Prius--depending on what you trade it for. So you have to sell it yourself to make some money.

Anybody want to try to trade your Prius for a Hummer? What will a Hummer dealer give you? That would be interesting. Maybe he'll give you two Hummers. LOL.

 

Aha. That explains missing Prius. They're not being leased...right?