I decided to find out how much of the initial value several popular cars retain over 8yrs/100k mi. I have used the invoice prices on all cars as my starting point, and then used KBB's trade-in prices to determine used car prices.

The figures below are percentages. For example, the Maxima SE is worth only 14% of its inital cost. That way, the depreciation is 86%. The top performer in my list is Lexus GS400 series. I took GS300 for 1995-1997 yrs because the GS400 was not made then. Also, KBB does not show BMW 5-series being built in 1996. Hope someone find this useful.





Yr A6 BMW 540 GS400 Q45 Maxima GXE Maxima SE
1 73 72 75 76 71 70
2 64 63 68 56 56 56
3 54 55 60 47 48 48
4 40 49 53 39 38 39
5 35 41 45 33 31 32
6 24 34 35 28 24 26
7 22 0 28 15 19 20
8 16 19 22 12 13 14

 

It's funny how a bmw which is a less reliable car (my opinion) holds it value so well.

 

dang I am not that good with attaching Excel file, if someone could straighten that mess out..

 

Thats because of its name. BMW, doesnt matter what model, its still a BMW.

 

roger that.

 

well, you folks can see that Lexus GS series is on the top. Infinity Q45 takes the worst hit..thats why you can buy an off-lease Q45 with low miles around 20 grand. We all know that Maxima values suck, but its not as bad to go from $26K to $3K for a Max as to go from a $60K to $15K in a Lex...But I run these numbers to understand in what years the ownership of my favorite cars is the least expensive.

 

What I find interesting is it's "common knowledge" that Nissan products have steep depreciation. A bunch of fellas were talking about SUV's in the office and when I mentioned FX45, everybody said it's nice but Infinitis have no resale value.

Remember what we learned in economics, because I don't think Nissan thinks most Americans understand it. To create a demand a person must want and be able to purchase something. We may want the hopped-up Porsche Cayenne, but how many on this forum have the ability to purchase it? So the demand for a Cayenne on this forum is basically zero.

When I got the Maxima in 1998, I got the 5-spd with every option under the sun for mid 22's. At that time, I could barely afford that with a 36-mo loan. Today, my situation is different and I would never buy another Nissan product ie today I can afford to spend a little more, I couldn't back then.

You can hate Toyota, BMW, Honda, Volvo all you want. But the fact remains that they hold their values. The car co. doesn't decide that, the auto market does.

 

Cars have never been (except of very rare occasions) a good investment. It is extremely unlikely if any car you buy will go up in value. They all depreciate. Personally, I don't really care how much it does. I've owned several Nissans. I really like my Maxima. There's no question about that. It's been very dependable, performs great, gets good milage, looks great, and most of all it's MINE. Is it a BMW? No. Do I want to pay $600+ a month for the next 5 years for a 5-Series? Nope.

Maxima's are great cars. I'm going to have mine for many more years. I really don't worry about the resale value of mine. When I am ready for a new one in another 6 years or so, the value will be so low that it won't matter much anyway. Also, not having a car payment for almost 6 years will be nice. What is important is that you get the car you will be satisfied with. Ask this question... What is your car's value to YOU? Who cares what it's worth as long as you are happy with it.

If you want an investment, buy a house!

 

And I think another major factor in why Nissan's don't hold thier value is because of Nissan themselves. They sell so many cars at their price point. $30K for a 250 hp or greater sports sedan is quite a bargain. For every 1 BMW there is on the road, you'll find at least 3 Maximas. It looks like Nissan is actually reducing the number of Maximas out there. There are alot of 3rd and 4th gens, but not so many 5th gens, and even fewer 5th gen 3.5s. The 6th gen may become even more rare, and it'll be able to hold it's value better as time goes on. The Altima will take over as the super mass quantity 4 door sports car. It's resale will dive (especially with the option of 4 and 6 cylinder versions available, spreading out the price point and starting in the low $16Ks) while the Maxima will thrive with its sky view and elite seating

DW

 

If you consider that only the Maxima sells for at or below dealer's invoice while the other contenders sell for near MSRP, I think the results will show a little more parity. Also, I think the other cars are of a decidedly higher class than the Maxima. I would like to see a comparo with the Camry, Accord, Grand Prix, and maybe Aurora.

 

Actually Grand Prix has even worse resale than a Maxima!! yeehah

What people fail to consider is that depreciation is part of operating a vehicle. So if a 330i costs 0.79/mi to drive and a Maxima costs 0.74, it may make sense to buy the BMW. When all is said and done, there is a barrier to entry. It's the high price. Does it cost more to heat a 700,000 house than a cheap 400,000 house? Not really, the electric, gas, and water are the same. So why not live in the more expensive house? Because you may not be able to afford the payment, and in the case of the house, the higher property tax. But if the 400,000 house is in a crumbling neighborhood, it may pay to buy the more expensive dwelling. Ask my grandmother--she owns 2 bldgs in BK, NY. Thanks to the people in the neighborhood her value is about 1/3 what it was in 1985. But you could take the other posters point of view, as long as she doesn't sell it, she could care less how little the bldgs are now worth. I'm just saying if you have the luxury of doing research in advance, residual and resale MAY be something to look at. Honda, Toyota, BMW are very good at that. And yes, you pay nearly MSRP on those cars when you buy Nissans below invoice, so they will cost more.

 

Interesting info on the values after 8 years. Something else to consider on resale value is how much representation a car has in the rental fleets. The higher the rental population, the lower the resale of that make. This is one reason that Nissan is holding off on selling th 6th gen to rental companies - at least for now.

 

in some cases it is cheaper to buy a used car, drive it for 2 yrs and sell it. This may be a route I'll take in the future.

 

Nissan resale sucks: because Nissan introduces factory rebates 6 months after the introduction of the car. So that kills the new car resale values for the first 1-3 years. Older maximas ie.. 3-gens have pretty decent resale value. A low miler 3-gen VE powered Maxima w/ 100k can go for high 5 to low 6k. That's more than some newer 4-gens.

Infiniti resale suckes: Because no one wants them. They don't have that "appeal" or name value. But I bet you could get a 2002' Q for a decent price now. More power than the older 540s? Not bad. But I think the new G series will hold their value(because it's in good demand) The FX35/45 probably won't hold it's value(unless it sells well) I can probably guarantee the M45 will get killed in resale. But that's what I'm counting on. If I can swing this car for maybe low 30's in 3 years or so, I'm on it. V8/RWD/bmw5 series size/more power than a 540, excellent handling etc.. Looks are just okay but I actually like the JDM theme of it. It's different(like me)

 

Yup nissan depreciation really sux alright. Thats why i'll never buy another one again new or used. And its not like the low resale is made up somewhere else like its quality or performance.

 

I think Maxima resale isn't as good because the car falls in the same slot as Camry's and Accord's in the used market, both of which have much greater appeal used than a used Maxima. Millions of people want a new Camry or Accord but can't quite afford one, so they pay just a couple grand less for one that's about 3 years old. Who wants a used maxima?

Hence, Maxima resale (the price people are willing to pay for them) plummets to levels below that of an equivalent used Camry/Accord, despite costing more to begin with. That's why Max's (and other high depreciation cars) are AWESOME buys used.


Speaking of crappy resale, I may try to pickup a used M45 or Q45 in a few years. Used GS400/430 is also on the list (awesome cars, they're just not "bling" BMWs or Mercedes)

 

You and I think alike.

 

Ah, was was Honda/Toyota doing during that time that the 4-gen was made? What was Honda/Toyota doing when the 3.5 240-250hp VQ3.5 Altima/Maxima was introduced? That's right nothing.

 

I agree with you--sure, you can get burned once for whatever reason, usually you didn't know any better or it's all you could afford. When this sales dude got a 95 Maxima SE in 1994 it was the s***! Even chicks liked his black 5-spd, and I think he paid over 27 for it. It was a hot car back then. That's why when I got out of grad school I couldn't believe that a zero mileaged 98 was going mid 22's with rebate. But guess what??? The WHOLESALE value of the vehicle can NEVER be at or above what you or I pay for the car, irregardless of rebates etc. Nobody can give you more for your car than they can get it for from the mfg. It is not a bargain to pick up a 98 all-optioned SE for 8 grand--the fact that you can means that's how much the market has determined it's worth. Try to get an 98 Accord or Camry for that little. If you prefer the Maxima, great! You buy it, and the deal is made. That's supply meeting demand. It's just a shame when people pay 27+ for a Maxima because they didn't know. How many times did we see that? In 2k, 2k1, and 2k2. 99 and older at least everybody and their grandma got 2000-2500 rebates and knew to go that much below invoice plus another 500-900 bills

 

Knowledge is power.