Dissapointed by resale value
08-18-2015, 11:13 AM
#1
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Thread Starter
Join Date: Aug 2012
Location: Kitchener, Ont. Canada
Posts: 38
Dissapointed by resale value
Hey guys,
Just needed a moment to vent, and to see if anyone has had any luck getting a fair trade value for their Max. I'm in the market for either a new Maxima or Q50, but trying to get out of my lease is quite dissapointing. I always lease, and with my other cars the dealers are practicially begging me to come in and swap out of my lease early for a new one. Usually at the 3 yr mark. Not so with this Maxima. 2012 Maxima Sport, 74,000km, clean car, they are telling me it's worth $13,500 on trade, and will sell on the market for maybe $17k. My residual value at the end of the lease is $13k, so tell me how my car, which msrp'd for $42k is only worth $13,500 after 3 yrs?
I've loved my Maxima for the 3 yrs, but have a really hard time enjoying this car now knowing that i'm paying for something that is not worth a dime. It really really makes me want to get out of this thing asap. Keep in mind i'm in Canada so everythign cost more here, hence the $42k MSRP for the Max in 2012.
Can anyone share their experiences with trading the Maxima in? Were you also dissapointed with the value?
Just needed a moment to vent, and to see if anyone has had any luck getting a fair trade value for their Max. I'm in the market for either a new Maxima or Q50, but trying to get out of my lease is quite dissapointing. I always lease, and with my other cars the dealers are practicially begging me to come in and swap out of my lease early for a new one. Usually at the 3 yr mark. Not so with this Maxima. 2012 Maxima Sport, 74,000km, clean car, they are telling me it's worth $13,500 on trade, and will sell on the market for maybe $17k. My residual value at the end of the lease is $13k, so tell me how my car, which msrp'd for $42k is only worth $13,500 after 3 yrs?
I've loved my Maxima for the 3 yrs, but have a really hard time enjoying this car now knowing that i'm paying for something that is not worth a dime. It really really makes me want to get out of this thing asap. Keep in mind i'm in Canada so everythign cost more here, hence the $42k MSRP for the Max in 2012.
Can anyone share their experiences with trading the Maxima in? Were you also dissapointed with the value?
08-18-2015, 01:04 PM
#2
Senior Member
Join Date: Jun 2011
Posts: 1,648
You are in a zone where I do not go. Never lease, never trade in, never buy new is my matra, as you are taken advantage of every time in my own opinion.
You didn't say what the out the door price was when you first leased this car and was it new when you did? If you paid MSRP when there have been huge discounts for these cars for years, that would have been a huge mistake.
Most new cars if not all take a huge hit in depreciation the first year that's why I always buy 1-2 year old certified one owner cars.
You didn't say what the out the door price was when you first leased this car and was it new when you did? If you paid MSRP when there have been huge discounts for these cars for years, that would have been a huge mistake.
Most new cars if not all take a huge hit in depreciation the first year that's why I always buy 1-2 year old certified one owner cars.
08-18-2015, 02:00 PM
#3
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Join Date: Mar 2001
Location: Manhattan Beach, Ca / Dallas, Tx
Posts: 3,751
You are in a zone where I do not go. Never lease, never trade in, never buy new is my matra, as you are taken advantage of every time in my own opinion.
You didn't say what the out the door price was when you first leased this car and was it new when you did? If you paid MSRP when there have been huge discounts for these cars for years, that would have been a huge mistake.
Most new cars if not all take a huge hit in depreciation the first year that's why I always buy 1-2 year old certified one owner cars.
You didn't say what the out the door price was when you first leased this car and was it new when you did? If you paid MSRP when there have been huge discounts for these cars for years, that would have been a huge mistake.
Most new cars if not all take a huge hit in depreciation the first year that's why I always buy 1-2 year old certified one owner cars.
08-18-2015, 02:21 PM
#4
Junior Member
Join Date: Jun 2015
Location: Connecticut
Posts: 24
I just looked at a 2012 sv prem loaded with every option that had 58.4k on it for 17990.00. That was asking price. they did have a sport but I didn't get the price on it but it would be lower them the prem. Hope this helps
08-18-2015, 02:41 PM
#5
Junior Member
Thread Starter
Join Date: Aug 2012
Location: Kitchener, Ont. Canada
Posts: 38
You are in a zone where I do not go. Never lease, never trade in, never buy new is my matra, as you are taken advantage of every time in my own opinion.
You didn't say what the out the door price was when you first leased this car and was it new when you did? If you paid MSRP when there have been huge discounts for these cars for years, that would have been a huge mistake.
Most new cars if not all take a huge hit in depreciation the first year that's why I always buy 1-2 year old certified one owner cars.
You didn't say what the out the door price was when you first leased this car and was it new when you did? If you paid MSRP when there have been huge discounts for these cars for years, that would have been a huge mistake.
Most new cars if not all take a huge hit in depreciation the first year that's why I always buy 1-2 year old certified one owner cars.
08-18-2015, 04:46 PM
#8
You are in a zone where I do not go. Never lease, never trade in, never buy new is my matra, as you are taken advantage of every time in my own opinion.
You didn't say what the out the door price was when you first leased this car and was it new when you did? If you paid MSRP when there have been huge discounts for these cars for years, that would have been a huge mistake.
Most new cars if not all take a huge hit in depreciation the first year that's why I always buy 1-2 year old certified one owner cars.
You didn't say what the out the door price was when you first leased this car and was it new when you did? If you paid MSRP when there have been huge discounts for these cars for years, that would have been a huge mistake.
Most new cars if not all take a huge hit in depreciation the first year that's why I always buy 1-2 year old certified one owner cars.
Plus Nissan resale valve is garbage. These cars depreciate quickly, only the Zs, GTRs, and Titans hold their value. Infiniti has the same problem out side of the G line up.
Last edited by Crusher103; 08-18-2015 at 04:48 PM.
08-18-2015, 05:23 PM
#9
Keep in mind that with the 8th gen now steadily available, the dealership is going to be more interested in selling brand new with maximum profit percentage than getting 7th gens back on the lot
08-18-2015, 06:28 PM
#10
Senior Member
Join Date: Jun 2011
Posts: 1,648
I believe the negative equity is rolled into the new lease, thereby allowing the salesperson to really give you the shaft for the second time, only more of it.
08-18-2015, 06:58 PM
#11
Member
Join Date: Dec 2013
Location: SW Ontario
Posts: 218
To my Kitchener neighbor, walk away from the car at the end of the lease.
Additionally you had the lease terms set at the outset, you should not be shocked now at the stated end value. I guess you wanted a high monthly payment to make the end value lower? you expected to make money ? not exactly a traditional or safe planning arrangment for people that lease cars all the time.
For me I got my 2013 SV when it was exactly 1 year old & 22k kilometre, I saved $13,000 CAD vs buying a new 2014. The horrible depreciation on the Max was advantageous for me, and I keep my cars at least 10 years so the remaining depreciation is not a real issue.
Additionally you had the lease terms set at the outset, you should not be shocked now at the stated end value. I guess you wanted a high monthly payment to make the end value lower? you expected to make money ? not exactly a traditional or safe planning arrangment for people that lease cars all the time.
For me I got my 2013 SV when it was exactly 1 year old & 22k kilometre, I saved $13,000 CAD vs buying a new 2014. The horrible depreciation on the Max was advantageous for me, and I keep my cars at least 10 years so the remaining depreciation is not a real issue.
08-18-2015, 10:12 PM
#12
OP I understand what you're trying to do it doesn't always work with every car when leasing. Not every lease will have equity at the end of the lease that you can apply for your next lease. Except for a Subaru or a Honda.
But really why you so concerned about resale or trade in, when you're leasing?
But really why you so concerned about resale or trade in, when you're leasing?
Last edited by shook187; 08-18-2015 at 10:17 PM.
08-19-2015, 02:38 AM
#13
Sounds like your getting ripped off... From my understanding the car is rare in canada so it costs more. Naturally it should sell for more but thats not the case. I would suggest sale it privately but since you're in a lease that was your 1st mistake. I wouldn't ever lease unless i was a millionaire. Your stuck.
08-19-2015, 06:29 AM
#14
Junior Member
Thread Starter
Join Date: Aug 2012
Location: Kitchener, Ont. Canada
Posts: 38
To my Kitchener neighbor, walk away from the car at the end of the lease.
Additionally you had the lease terms set at the outset, you should not be shocked now at the stated end value. I guess you wanted a high monthly payment to make the end value lower? you expected to make money ? not exactly a traditional or safe planning arrangment for people that lease cars all the time.
For me I got my 2013 SV when it was exactly 1 year old & 22k kilometre, I saved $13,000 CAD vs buying a new 2014. The horrible depreciation on the Max was advantageous for me, and I keep my cars at least 10 years so the remaining depreciation is not a real issue.
Additionally you had the lease terms set at the outset, you should not be shocked now at the stated end value. I guess you wanted a high monthly payment to make the end value lower? you expected to make money ? not exactly a traditional or safe planning arrangment for people that lease cars all the time.
For me I got my 2013 SV when it was exactly 1 year old & 22k kilometre, I saved $13,000 CAD vs buying a new 2014. The horrible depreciation on the Max was advantageous for me, and I keep my cars at least 10 years so the remaining depreciation is not a real issue.
Let me clear some things up for you guys, I fully understand the lease contract and the stated value at the end of the lease. That's not what i'm upset about. I'm upset that the car has depreciated so much, that with 12 months left, it's not even worth the stated value at the end of the lease.
I believe in leasing because i usually like to drive a new car every 3-4 yrs, and with my job, i can write it off. Also, i pay for what i use, and it gives me an out if the car has been in an accident etc. So alot of people have their opinions on leasing, and that's fine, but for me it works to my advantage. Secondly, it's not that i'm overly concerned about the value. I'm just shoked at what has happened to the value of this car. Usually i'm able to flip any lease i'm in before the lease is up, but in this case, the car is worth only $13k with 12 months left on the lease. I'm not over my mileage either, in fact i'm at exactly 74,000km, which is right on target. I'm allowed 24k/yr. The residual value determined by the manufacture is $12,969, so i highly doubt that in 12 months when my lease is up it will be worth the $12,969, if it's only worth $13k now. I've had 2 appraisals done, and both came in at around the $13,000 mark. I'd like to get out of this car early, simply because i feel now that i'm paying too much for a car that's not worth any value, however if i can't get out of it it, in 12 months i just hand in the keys and say it's your problem. Again, another pro of Leasing.
08-19-2015, 06:34 AM
#15
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Thread Starter
Join Date: Aug 2012
Location: Kitchener, Ont. Canada
Posts: 38
My lease is not up yet, trying to get out of it early. That's why the present value of the car is affecting me. If the lease was up, i'd simply hand them the keys and say see ya.
08-19-2015, 06:38 AM
#16
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Thread Starter
Join Date: Aug 2012
Location: Kitchener, Ont. Canada
Posts: 38
That's actually not true, not sure how it works in the U.S., but once my lease is up, the present value of the car won't affect my new lease at all. After i've fulfilled my term, i'm clean and clear, with the option to purchase the car at the predetermined value. The only cost to me on a lease return is excess mileage, and excesive wear and tear. Other than that, the car goes back to Nissan Canada and it becomes their problem. So in this case, in 12 months if the car is valued at $8,000 when the residual was $12,969....it's not my problem anymore, it's now Nissan's.
08-19-2015, 09:18 AM
#17
Senior Member
Join Date: Jun 2011
Posts: 1,648
Well ok if that's the case why the concern over the end lease low market value of your car? Just turn it in a get a new lease on a new car. If you are going to continue to lease vehicles then the residual value of a car at lease end is a non issue, I would think.
09-10-2015, 04:43 PM
#18
Junior Member
Join Date: Jan 2009
Posts: 76
I'm still stumped by the depreciation in the car. The 2014 base model which retailed in the low 30s now trades around 17,000. A base level 2014 Honda Accord which retailed in the low 20s now trades for around 17,000. Magically, the Nissan seems to have lost an additional $10,000 in 2 years.
09-10-2015, 05:49 PM
#19
Junior Member
Join Date: Oct 2014
Posts: 37
I'm still stumped by the depreciation in the car. The 2014 base model which retailed in the low 30s now trades around 17,000. A base level 2014 Honda Accord which retailed in the low 20s now trades for around 17,000. Magically, the Nissan seems to have lost an additional $10,000 in 2 years.
09-10-2015, 06:04 PM
#20
Junior Member
Join Date: Jan 2009
Posts: 76
Thanks. I had no idea they discounted them that much. That is crazy. I think I paid in the low 20s for my 1994, which I still drive today. Amazing the out the door price hasn't budged for a car that has almost twice the horsepower and a lot more features.
Last edited by khakuda; 09-10-2015 at 06:54 PM.
09-10-2015, 08:49 PM
#21
Junior Member
Join Date: Oct 2014
Posts: 37
My daughter just turned 16 and I have seen new 2015 Versa base models (stick shift) for under $9k OTD. The cheapest Versa listed in Carmax is $12k used.
09-11-2015, 07:53 AM
#22
Junior Member
Join Date: Jan 2015
Location: ST Louis
Posts: 87
When a new body style comes out the older ones drop hugely, and these cars were never WORTH 42000, that is like the new ones are not worth 40 grand and will drop quickly in a year also. Bought my 14 with 26xxx for under 20 grand
09-11-2015, 09:34 AM
#23
I agree with buying gently used and ride it out for a few years. I usually buy used like 20-25k then trade in 5-6 years later at 100k. Much better deal especially in your scenario, but for someone like you I get it. You want to have a new car and change regularly. Nothing is wrong with that.
What you are trying to do only works in certain situations with certain model vehicles AT a certain time in their lifespan and popularity when you lease. Someone with your driving habit should not lease as you will rarely come out ahead and you are forced to maintain a car more frequently due to your higher mileage driving that you have to give back so your real cost of ownership is much higher.
If i am reading your lease right. you paid 26k to drive a maxima for 75k miles. Had you bought one that was 2 years old, you would own it when your lease is up for less money and the car would have 100k rather than 75k miles, but you would get all the trade in cash for your next purchase. This is why i say in your case, the deal you made was not a good deal, but i understand your circumstances. You couldn't get much flexibility on price in Canada, the model has recently changed on you, and your model is coming off lease everywhere now so the used market is nothing. Let me give you some advice as I have leased many cars for my wife who works 10 miles from home.
If you want to play the game of flipping cars every few years, you drive high mileage and lease, you should only purchase cars with solid residual values, because they get good resale and are desireable in the used market. Purchase your car in the right time of its lifespan so your model is still relevant when you go to trade in early. Trust what I'm saying. My wife has given back a jeep wrangler and a honda accord both loaded and walked away with 4-5 remaining payments and a deposit credit to the new deal. There is a certain point in a car's life within a lease, where you can make this call if you lease the right car, you negotiate on total price of the car, and your driving habit supports this model. You drive high miles so if this is your story of switching cars, you should really only lease cars that get good residual ie lexus as an example. That is the only way you will have a good shot at accomplishing what you want to do. However, don't go lease that lex in 2016 and the model is changing in 2017. Then you are back in the same boat.
What you are trying to do only works in certain situations with certain model vehicles AT a certain time in their lifespan and popularity when you lease. Someone with your driving habit should not lease as you will rarely come out ahead and you are forced to maintain a car more frequently due to your higher mileage driving that you have to give back so your real cost of ownership is much higher.
If i am reading your lease right. you paid 26k to drive a maxima for 75k miles. Had you bought one that was 2 years old, you would own it when your lease is up for less money and the car would have 100k rather than 75k miles, but you would get all the trade in cash for your next purchase. This is why i say in your case, the deal you made was not a good deal, but i understand your circumstances. You couldn't get much flexibility on price in Canada, the model has recently changed on you, and your model is coming off lease everywhere now so the used market is nothing. Let me give you some advice as I have leased many cars for my wife who works 10 miles from home.
If you want to play the game of flipping cars every few years, you drive high mileage and lease, you should only purchase cars with solid residual values, because they get good resale and are desireable in the used market. Purchase your car in the right time of its lifespan so your model is still relevant when you go to trade in early. Trust what I'm saying. My wife has given back a jeep wrangler and a honda accord both loaded and walked away with 4-5 remaining payments and a deposit credit to the new deal. There is a certain point in a car's life within a lease, where you can make this call if you lease the right car, you negotiate on total price of the car, and your driving habit supports this model. You drive high miles so if this is your story of switching cars, you should really only lease cars that get good residual ie lexus as an example. That is the only way you will have a good shot at accomplishing what you want to do. However, don't go lease that lex in 2016 and the model is changing in 2017. Then you are back in the same boat.
Last edited by Asav; 09-11-2015 at 09:45 AM.
09-24-2015, 12:10 PM
#24
Junior Member
Join Date: Sep 2010
Location: TX
Posts: 33
Not sure where some of the pricing confusion is coming from, but when I got my Max new in 2012, I ended up at $32K OTD. This was with the Sport and Tech package. No way I would've paid $40K for it, or anywhere close to that. If it's worth 50% of its value 3 years later, in addition to a new model coming out, that's pretty good for this car.
09-24-2015, 12:38 PM
#25
Junior Member
Join Date: Jan 2015
Location: ST Louis
Posts: 87
The done up ones are almost 40 grand now, and they are in no way worth it. If I am paying anywhere around 30 anything the Max is not what I would of bought..........But got mine for 15xxx with 26xxx miles on it and couldnt pass that up
10-02-2015, 07:10 AM
#27
Junior Member
Join Date: Jan 2014
Location: Boston
Posts: 59
Damn.. I bought my 2012 Maxima SV in early 2014 with exactly what I wanted for options and color with only 6k miles on it for $21k. Im ok with spending 50% of MSRP not being the "Brand New" car but still everything about it is brand new. That definitely helps with resale value. I am starting to get the new car bug as well, but building brand new house and first child on the way may prevent me from getting that GTR =( Maybe I can convince the wife that a Jeep SRT8 is a more practical car for the family being an SUV, more storage to get things for the house and tow the boat I also want next summer haha
10-02-2015, 07:31 AM
#28
Junior Member
Thread Starter
Join Date: Aug 2012
Location: Kitchener, Ont. Canada
Posts: 38
I agree with buying gently used and ride it out for a few years. I usually buy used like 20-25k then trade in 5-6 years later at 100k. Much better deal especially in your scenario, but for someone like you I get it. You want to have a new car and change regularly. Nothing is wrong with that.
What you are trying to do only works in certain situations with certain model vehicles AT a certain time in their lifespan and popularity when you lease. Someone with your driving habit should not lease as you will rarely come out ahead and you are forced to maintain a car more frequently due to your higher mileage driving that you have to give back so your real cost of ownership is much higher.
If i am reading your lease right. you paid 26k to drive a maxima for 75k miles. Had you bought one that was 2 years old, you would own it when your lease is up for less money and the car would have 100k rather than 75k miles, but you would get all the trade in cash for your next purchase. This is why i say in your case, the deal you made was not a good deal, but i understand your circumstances. You couldn't get much flexibility on price in Canada, the model has recently changed on you, and your model is coming off lease everywhere now so the used market is nothing. Let me give you some advice as I have leased many cars for my wife who works 10 miles from home.
If you want to play the game of flipping cars every few years, you drive high mileage and lease, you should only purchase cars with solid residual values, because they get good resale and are desireable in the used market. Purchase your car in the right time of its lifespan so your model is still relevant when you go to trade in early. Trust what I'm saying. My wife has given back a jeep wrangler and a honda accord both loaded and walked away with 4-5 remaining payments and a deposit credit to the new deal. There is a certain point in a car's life within a lease, where you can make this call if you lease the right car, you negotiate on total price of the car, and your driving habit supports this model. You drive high miles so if this is your story of switching cars, you should really only lease cars that get good residual ie lexus as an example. That is the only way you will have a good shot at accomplishing what you want to do. However, don't go lease that lex in 2016 and the model is changing in 2017. Then you are back in the same boat.
What you are trying to do only works in certain situations with certain model vehicles AT a certain time in their lifespan and popularity when you lease. Someone with your driving habit should not lease as you will rarely come out ahead and you are forced to maintain a car more frequently due to your higher mileage driving that you have to give back so your real cost of ownership is much higher.
If i am reading your lease right. you paid 26k to drive a maxima for 75k miles. Had you bought one that was 2 years old, you would own it when your lease is up for less money and the car would have 100k rather than 75k miles, but you would get all the trade in cash for your next purchase. This is why i say in your case, the deal you made was not a good deal, but i understand your circumstances. You couldn't get much flexibility on price in Canada, the model has recently changed on you, and your model is coming off lease everywhere now so the used market is nothing. Let me give you some advice as I have leased many cars for my wife who works 10 miles from home.
If you want to play the game of flipping cars every few years, you drive high mileage and lease, you should only purchase cars with solid residual values, because they get good resale and are desireable in the used market. Purchase your car in the right time of its lifespan so your model is still relevant when you go to trade in early. Trust what I'm saying. My wife has given back a jeep wrangler and a honda accord both loaded and walked away with 4-5 remaining payments and a deposit credit to the new deal. There is a certain point in a car's life within a lease, where you can make this call if you lease the right car, you negotiate on total price of the car, and your driving habit supports this model. You drive high miles so if this is your story of switching cars, you should really only lease cars that get good residual ie lexus as an example. That is the only way you will have a good shot at accomplishing what you want to do. However, don't go lease that lex in 2016 and the model is changing in 2017. Then you are back in the same boat.
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