SteVTEC

So why do Maxima's have such a steep depreciation rate?

My loaded (and now wrecked) 2001 Accord EX V6 cost me 23k new. It's now worth about $18k on the market for a depreciation of $5k with 30,000 miles on it. (I drive a lot)

A loaded 2001 Maxima GLE would have cost me about $27k new. It's now worth the same $18k on the market for a depreciation of $9k with the same 30,000 miles on it.

What gives

Both are fine Japanese mid-sized sedans.
Both have almost identical equipment levels.
Both have excellent reputations for reliability.

WTH?

black019

its a good thing because now I can get a great deal on a 4th gen

NoHalo

I've never understood this either.

gtr_rider

iTrader: (50)

I was just talking about this last night to my dad, because he was wondering why there are so many maxima on the road. That depreciation value sucks to kingdom come.

costcowholesale

iTrader: (12)

Theres a lot of maxima for sale on teh market, it seems like theres too much supply & not enough demand maybe thats why, used maximas are easier to find than camcord here

SteVTEC

No kidding!!!

If I had bought a Maxima last year and it was totalled on me I would be screwed right up the aZZ because I'd still owe in the low/mid-20's on it meanwhile I'd only get a check for $18k while the car is sitting in a salvage yard and still paying for it!!

I'd be praying to god that they don't total it and fix it. But meanwhile if they total my Accord I'm pretty much even on the loan and could pay it off and buy a new car tomorrow. If I ever bought a Nissan new I'd be sure to look into gap insurance.

Like black019 said, though, steep depreciation makes them an excellent buy on the used market.

Tai Mai Shu

Economics 101 guys, there is a higher demand for the Accords (one of the best selling cars in America) than for Maxima's. The American market perceives the Accord as a good used car (and rightfully so as far as dependability), so....

Also it depends on how discounted the car was when it was sold new. I know that the I-30's were heavily discounted in 98, so now compared to a ES300, is worth less (percent of sticker vs current price).

The silver lining on this is of course if you ae looking for a used Maxima, you can get it at a good price.

Weasel

iTrader: (2)

Thank god for depreciation... my car lost about 6k in value the first year it existed, allowing me to buy it after that instead of something much crappier. Depreciation is a two way street, much better for us used car buyers.

Dave B

I guess it really doesn't bother me that the Maxima's resale is relatively low because I'd never buy a new one. The lower resale lets me get into a nicer car. I know the Maxima is very reliable and it's quick and that's what counts to me. The public is far more concerned about all out reliability and they preceive the Accord/Camry as better cars therefore the resale will be higher. Take a look at Consumer Reports and you'll see the Maxima fairs just as good as the Accord/Camry. If someone who's not a car guy finds out you have a Maxima, they're reaction is almost always "wow, a Maxima. What a nice car". If depreciation bothers you so much, then don't buy new cars. I bought my 96 SE 5 speed (nearly fully loaded) for $15000 with 34K miles back in March of 99 (MSRP was $24300). I've been following current prices and KBB.com and it look like I can get about $10.5K for my Maxima (74K miles). I don't consider that bad for a 6 year old car with 74K miles.


Dave

Jeff92se

iTrader: (82)

Easy. Nissan introduces a new model and sells them for msrp. Then after 6 months or so, they start to impliment all kinds of rebates and factory discounts. Plus you can haggle them to death on a new one anyway. So as the new car prices comes down, it also kills the used car prices. ie.. if you can get an new one for XXXX, then your used one is now worth XXXX-YYY.

Smart buyers would probably buy an used one or a severly discounted new one.

Steve which car would you want for 18K? The accord or maxima? Resale doesn't win the street races! haha just joking man.

SuDZ

Same with me. My max had a 27K sticker and I never could have afforded it while still in school etc. But since it was down to 15K for me it works out nice where I can pick it upand not worry about very high payments for the next few years.

SuDZ

Neice Anne

Yeah I'm not complaining when I'm getting a 97 5 spd for 6k!!! Muahahahaha this car cost someone about $30k 4 years ago hehe

Neice Anne

You should see this dealership I'm gettin the 97 from.. they're jumping through hoops to get me to buy it and give them the Eldorado, which is very easy to sell in gheto-*** NM

RapidMax

iTrader: (2)

I love the fact tha they depreciate so much. I got a $28,000 car for only $17,200 because it had 19k miles on it and was four years old. Most people still confuse it for a brand new car.

Neice Anne

Let us know how you feel about it in 4 years and you're selling it for $4000

irvine78

iTrader: (2)

it's the Nissan conspiracy... j/k.

i've been wondering about this too. i think it's because of popularity. more younger people are looking to buy used cars and they like Hondas better. this comparsion can be extended to include Civics and Sentras. both have excellent build quality, performance(for dollar), and reliability. yet, Civic has very little depreciation compared to Sentras...it just sucks!!

finny

its not like the maxima is the only car to depreciate like that. yea there are some vehicles like the accord that hold much better value but there are also pleny of other cars that depreciate even worse. look at some sport utilites or domestic care that are in the 20-30k price range new where a year later you can buy them about 10k cheaper. like costcowholesale siad if there was more of a demand for used maxs youd be gettin more when you get rid or you car and it wouldnt depreciate as much. just my 2 cents

dwapenyi

iTrader: (3)

1) All Maximas have the same engine. No different at all. So a GXE is not really all that difference from a GLE.

2) Nissan themselves, always having a big rebate season to get rid of their old, new cars. RIght now is a great time to but a 2001 model.

DW

jkratzer

The Ford Taurus depreciates worse than the Max. Be glad you don't own that POS.

Jeff92se

iTrader: (82)

You do realize that is what the Lexus/Mercedes/BMW people say about Maximas right?

iwannabmw

iTrader: (3)

They can say what they want, but it's all over when they're looking at tailights (mostly anyway). This car is my poor man's BMW

Jeff92se

iTrader: (82)

You do realize that's what all the domestic muscle car people say don't you?

jkratzer

iwannabmw

iTrader: (3)

Frank Fontaine

My friend's brother just got a 6-cyl EX for 22,800. There were no options avail, and I think he said the list was just under 26 with freight. I think where you may be making a miscalculation is that the GLE sold for that much more than the V6 Accord. The list may be 3 grand more, but not so on the selling price. Because the demand for the Accord has fallen by the wayside, there will be "Maxima" depreciation on the current Accord as well. True, the "in" Hondas definitely show less depreciation than Maximas, just don't think the 2001 or 2002 EX falls into that category. Honda is smart though they put a distance between Accord and TL. For example, you can't get heated seats in any accord for any price. Honda was also smart to save money by using a SOHC design on the V6 and rear drums on 4-cyl since many buyers don't even notice.

iwannabmw

iTrader: (3)

3 Nissan's and 2 Honda's. I've had way more issues with the Honda's then the Nissan's. They might be better than a Ford, but Honda's image is way overrated, in my opinion.

bigbadboss101

I got my 99SE in June of 99 and paid $31,300 Canadian. When I returned it to the dealer the residue was $24,500 or so. $7G in just under 3 years and 48,000 km isn't bad.

My friend had a 2000 Malibu. Cost about $28k, and when we crashed it this past November, he got about $17k from insurance.

My 4DSC

this is the *only* reason im not driving a 2k2 6spd right now.
MSRP on my 00 max was $22,500 just 1 year ago.
dealers are offering me $10,500-$11,500 on trade.
fu@king bullshiet if you ask me....but wuteva.

Honda vs. Nissan (example):

i bought a 96 civic ex new for $15,500 in 10/96.
dealership gave me $10,000 as a trade on 10/00 toward the max.
thats a depreciation of only $5,500 in FOUR YEARS!!!!!

i've only had my maxima for 14 months and its only worth half what i paid for it.
i put down $13,000 on the max and after a full year of making payments, I only have about $2500 in equity?!?


sorry had to vent.

Frank Fontaine

I don't understand why Economics isn't taught in 9th grade just like biology, because it should be.

Why in the world would anyone want to pay you more or anything close for your USED '00 when they are getting NEW '02's for dirt cheap? How the **** is a new 2k2 gonna go for 21-22 if the dealer aint getting it for less than that? Can you say VALUE ADDED? That is shifting very fast in the auto industry.

The other part of your argument is a little algebra, which I think should be taught in the 3rd or 4th grade. Dealers overwrite trade-in values 1) to make themselves look good (um they jack up the sale price and it works out the same)
2) it's beneficial as far as the buyer paying less sales tax

wonder what 5500/15500 works out to be Maxima isn't great resale, but c'mon now you lost 1/2 value in 14 mos. Anyone who believes that is probably gonna buy the Lincoln Tunnel for $6 too.

SteVTEC

I think there's much more to it than that. I think market conditions and competition have a lot to do with it. I notice that a 2001 Toyota Camry XLE V6 fully loaded is also worth around only $18k when they were going for probably around $26k new last year.

Look at this...

Honda Accord EX V6 Sedan: $23k new, now worth $18k
Toyota Camry XLE V6 Sedn: $26k new, now worth $18k
Nissan Maxima GLE Sedan : $27k new, now worth $18k

Who has the lowest price new? The Honda Accord. I think that's why the depreciation on it is so low. If the used cars are priced any higher then people would just go buy a brand new car. If 1 year old used Maxima's were going for $22k then why would people buy it if for the same money they could just get a brand spanking new Accord! But if the Accord was priced around $26-27k new like the Maxima and Camry then I bet these cars would be going for around $22k used right now.

I think Max owners have the ultra-low price of a loaded Accord to blame for a lot of your depreciation problems!!!

95emeraldgxe

people just seem to like honda's and accuras better than nissans and infiniti......just be happy that not too many people have the maxima

Frank Fontaine

I still don't see where the 27k number is coming from. In the 98-99 years people were picking up fully-loaded SE manuals for mid 22's. Granted the factory kicked 2.5 small. That's maybe 1.5 they're not putting in now, so add it up and you get low 24's. Right in the paper a fully loaded GLE less navigation is in the 25's, which is a rip-off because it's common knowledge that Maximas sell for invoice, and an aggressive buyer who isn't desparate can go into the holdback when the conditions are right. When you don't negotiate the buying price into the holdback, you can't say the extra money spent is depreciation.

Who in their right mind would pay 27k for a GLE? Again, fully-loaded less navigation should be around 25-25.2.

The really funny argument is "I made payments for a year of blah blah blah, put blah blah blah down, and now I only have 2k equity in my car." hahah On a typical 36 mo loan, 1 1/2 payments in the first year is strictly interest alone. One can't attribute that to depreciation!

jkratzer

5th gen loaded GLE's less Nav list for 29K to 30K MSRP. The 27K would be about invoice for that car so the 27K is a good number. Just go to Carsdirect.com to get the invoice price for a fully loaded GLE and you will see. Only if you got the car 2K below invoice could you pick up a loaded 5th gen GLe for 25K and that is not going to happen.

Neice Anne

Yeah except that they apparently don't have forums, or I'd be in my 300hp forum talking about all the riceboy Maximas I jack! jk

Frank Fontaine

When there is a $1000 incentive, and you planned on $400 below invoice, you need to subtract $1400 from invoice. When people got their 99's which listed for 29.4k for 22.8 or so, they were more than 2500 below invoice, believe me, really.

The buyer has to ask to go below invoice and into holdback. A dealer will not do that up-front, and why should they? They will swallow the incentive whole if you don't know much about the pricing. Again, navigation is a high $ option, no you will not get a GLE for 25 that has navigation.

Where the smoke and mirrors seem to enter the equation is when there is a trade and people are financing the vehicle. They seem to be factoring in a poor purchase price, interest payments, and trade-in value to the depreciation which is wrong. Hey, if you wanna pay 27k for a GLE, more power to ya. If you wanna read the Sunday paper and insist on the lower price, that's another alternative. Some people really do believe that all the papers from NYC to CT and upstate NY are bogus. That's their perogative! The 1999 GXE for $16,995 brand-new was said to be fake on the then current forum. My friend in Albany drives one of those and got that price

95maxrider

iTrader: (32)

Sure, the low resale value is bad for people that buy new cars, but its great for students like me. I don't think I'll ever spend more than like $10,000 on a used car....and I'll be happy with that. The way to solve all these problems is just buy a used car. Gotta love it.

RussMaxManiac

No, just the dealer doesn't want your car. Simple as that. I got offered by 2 dealers in town 19k and 20k for my 2001 with 14k of miles. SE loaded. All depends where you go.

Bluebook is 19k tradein.

Also, people who bought AE 2001s got screwed bad. They paid 27-31k. and its only worth as much as 19k now. That is why I did not get a AE..i knew the looks would not get it more.

NYCe MaXiMa

iTrader: (9)

The best selling mid-size sedans are:
Camrys
Accords
Ford Taurus

The Maxima is not offered in a bargain, economic 4 cyl trim like the camry and accord, then the Taurus is up there because it's cheaper and cheaper to maintain.

I don't think I will ever buy a Nissan new. You can wait a year, or till the end of the year, and save 2 grand on the car already.
I bought my 98 GXE for 10.5k, 57k miles, automatic with sunroof and C&C package, this was in August and I thought a fairly good deal. Same cars were being sold for at least 12k from private sellers, and around 13-15k from the dealer, now you can find these for as much as I paid for, the dealer is selling them for around 12. it's pretty crazy, considering only 5 months or so passed. 95-96 Maximas are not worth more then 8k anymore. maybe 9.5k for a 96 GLE with low miles. But in general, if I was looking for one, I can find it that cheap. This is also weird because 2 years ago, when I got my 93 max for 7k, the 95-96s were going for 12k+ ..... now 93s are worth 4.5k at most.

I agree with Weasel, depreciation may be a positive as well... if you are buying it used and plan on keeping it for a while, it's a good bargain, the car is reliable so even buying it with 100k miles used, u can keep it another 4-5 years easy.

jkratzer

Incentives are temporary and may not be in effect when you are shopping for a new car. You may or may not be able to get the car below invoice either. This is all theoretical and depends on demand for the car in your market. I don't care about how much the 1999 cars went for because that is history. You have to look at what the current car goes for. When the 5th gen first came out, there were no incentives and the cars were in demand so getting the car below invoice was a pipe dream.

Frank Fontaine

You're right, I wouldn't want 255 hp below invoice, I'd rather own a 2001 having paid more. Though rationalization eases ones mind, it doesn't change the fact that 255 hp can be had for cheaper than 217 or whatever the 2001 has. Nah, Xenons are for the birds too. And who cares about history either, live for tomorrow!