Huge discounts affecting resale values?
#1
Huge discounts affecting resale values?
I've been watching the used car values of F-Type closely for a while now (mostly R Coupe version). I'm seeing something that I feel is a really bad sign overall for F-Types in general.
1. There are new 2016 models being advertised at $10K - $12K off MSRP. I would think you can easily negotiate another $1K or $2k while making the purchase.
Example: New 2016 Jaguar F-TYPE R - Near Bellevue WA - Jaguar Bellevue
If you look at the stock at this dealer a lot of the cars are $10K off - across the range, nothing specific to any version.
2. cars.com presents a similar picture as well. So this in not specific to this dealership.
3. (1) and (2) above to me points that Jaguar has already provided a huge incentive to the dealers to get 2016s off the lot.
Yes, 2015s in April of last year had a similar story. But this is still Feb - why oh why is Jaguar providing so much money to the dealers that they are advertising at 12% off MSRP for their flagship sports car? Used 2015 R coupes have already reached the sub $80K starting price now (dont forget this is what a dealer is asking, so actual trade-in values are $3K - $6K lower) - that's 25% depreciation in a single year. When can we expect 2015 RWD Coupes to get any used car market love for being RWD?
My perception of this is that the car (as much as I felt was bang on with value for money) is not "worth" its "name / prestige / image" any more. What could be contributing to such a mess (or is it not yet)?
1. There are new 2016 models being advertised at $10K - $12K off MSRP. I would think you can easily negotiate another $1K or $2k while making the purchase.
Example: New 2016 Jaguar F-TYPE R - Near Bellevue WA - Jaguar Bellevue
If you look at the stock at this dealer a lot of the cars are $10K off - across the range, nothing specific to any version.
2. cars.com presents a similar picture as well. So this in not specific to this dealership.
3. (1) and (2) above to me points that Jaguar has already provided a huge incentive to the dealers to get 2016s off the lot.
Yes, 2015s in April of last year had a similar story. But this is still Feb - why oh why is Jaguar providing so much money to the dealers that they are advertising at 12% off MSRP for their flagship sports car? Used 2015 R coupes have already reached the sub $80K starting price now (dont forget this is what a dealer is asking, so actual trade-in values are $3K - $6K lower) - that's 25% depreciation in a single year. When can we expect 2015 RWD Coupes to get any used car market love for being RWD?
My perception of this is that the car (as much as I felt was bang on with value for money) is not "worth" its "name / prestige / image" any more. What could be contributing to such a mess (or is it not yet)?
#2
I took a look at their inventory, and there's really nothing happening there now that hasn't been the same for all model years across the US.
The deeply discounted cars are the heavily-optioned cars, which have higher profit margins. For example, if you look at their base cars you'll see two heavily-optioned ones that are deeply discounted, and two lightly-optioned base cars that aren't discounted.
I don't think you'll find a $10K discount on a stripped 2016 base, which is arguably the best value of the herd. They've also seen better resale/trade values since introduction.
The deeply discounted cars are the heavily-optioned cars, which have higher profit margins. For example, if you look at their base cars you'll see two heavily-optioned ones that are deeply discounted, and two lightly-optioned base cars that aren't discounted.
I don't think you'll find a $10K discount on a stripped 2016 base, which is arguably the best value of the herd. They've also seen better resale/trade values since introduction.
#3
The deeply discounted cars are the heavily-optioned cars, which have higher profit margins. For example, if you look at their base cars you'll see two heavily-optioned ones that are deeply discounted, and two lightly-optioned base cars that aren't discounted.
I don't think you'll find a $10K discount on a stripped 2016 base, which is arguably the best value of the herd. They've also seen better resale/trade values since introduction.
#4
#5
#6
For what it is worth, looking locally at 2016 BMW 328i and 4 series to replace my wife's 2004 325i. Dealer is offering $9,000 or so off list on a few of their in stock models and will give us $7200 trade in with my 2000 XK8 which is pretty strong wholesale per blackbook and NADA (kbb is way off btw for some odd reason ??). So, it is not just Jaguar offering pretty nice discounts and incentives right now.
Last edited by 64vette; 02-09-2016 at 09:40 PM.
#7
Same difference . . . what are options on other models are added into the std. MSRP on Rs. Regardless, it makes it possible to offer deeper discounts.
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#8
IMO the F-Type is not as highly coveted as Ferrari or Porsche or other Italian marques. As such, value can drop quickly. But who cares?? This was not a financial investment but rather, an investment in my quality of life, an investment for my soul, for my joie de vivre! The price tag for that is quite high and for the purchase of my 2016 F-Type R vert, I got a smokin'-a$$ deal!!!
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#9
Right on. While few cars actually retain much less increase in value, thus making buying most cars an awful financial investment, I was fully aware my purchase (of an over-optioned, as in more than I intended...but now glad I have) of my 2015 V6S was going to come at a steep loss.
And could care less as the pleasure I garner - even when the car is stationary - more than makes up for any financial loss. It's not all about money in my opinion, and rarely is.
And could care less as the pleasure I garner - even when the car is stationary - more than makes up for any financial loss. It's not all about money in my opinion, and rarely is.
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F-TypeRookie (02-10-2016)
#10
Exactly why I always buy used. We bought a 2009 CTS-V in 2011 with 2k miles for a little more than 1/2 of original retail. We bought the C63 in 2014 with 2k miles for 2/3 original retail. Both were essentially new cars, but without the price. You have to be willing to settle on things like color and options, but if you do, there are real bargains on nearly new cars.
#12
I made the ultimate decision to ignore cost by deciding my fun car would be a lease. Yep, I pay for ridiculous depreciation and interest. But, I do not worry about having a car out of warranty or the hassle of selling a car that is worth more to me than the buyer. I would certainly worry about buying a used performance car, not knowing how the previous buyer treated it. Of course if you are able to sell the used car after a short time and still not take a beating, that may the best of all worlds. I just got sick of the hassle of trying to sell a used car at a price I thought was fair.
Larry
Larry
#13
New price (incl the options) in Norway was NOK 2.150.000,-. I paid NOK 1.500.00,- included import taxes.
That is a nice amount saved.
Ps: car taxes on high powered cars are very high in Norway, so yes - the price is correct
#14
Yes, its not an exotic. Yes, its not an investment that grows. And no, the concern is not that it is depreciating, which is absolutely ok!
But the concern is how fast it is depreciating and what factors are contributing to it. Even more so, the concern is the very company selling the car which is a really good one at that is affecting its value proposition without thinking relatively long term.
It will sound like I am being quite biased here, but bear with me:
Don't tell me none of you felt that this car was an absolute steal for the money (with or without discounts). It checks most of the boxes (at least for me) and I believe it does for most of the target audience. Comparing to the available alternatives and their lack of value perception, this is definitely a "winner".
Yes, every company wants to move the prior model year out before the next model year production starts. Yes, they have volume targets and increases YoY to meet. But this is what I mean by the company not thinking "relatively" long term. Let the volumes come from specific models targeted for volume (aka XE, F-Pace, XF). But why should your halo car and the customers who buy them even for a moment feel anything remotely associated with "loss of value".
Comparing the depreciation of this car to a BMW/Merc/Cadillac "just another car" models is a no-go. They are so very different cars from perspective of what their manufactures think of them.
And why cant Jaguar think of it as: Get folks on F-Type -> Make them feel special (which they do we ll I guess) -> Let the customer appreciate the car and its value proposition -> Let them understand what Jaguar as a brand is -> Lets get them moving up the model hierarchy to an even more special F-Type 2-3 years down the line.
So if you really see it, I'm cribbing about the fact that Jaguar took away my feeling of "wow, this is amazing value for money. I can enjoy it for 2-3 years and trade it in for the next version / mid-life update". Another year from now, I will think a lot more when its time to trade it in simply because the car is worth much less than its supposed to be.
My RR Evoque bought for $53K was traded in for $44K (both prices do not include tax). Thats less than 20% in 2 years. All external factors aside (optioned up cars, new model years etc), Jaguar I believe could have helped the situation here by not kicking prior year models out the dealer lots in a hurry. They could have extended model years to be 18 months instead of 12 months. They had the room for it.
I'm just being a "manager" who does not want to listen to excuses - jut make it happen. I believe their new line-up (XE, F-Pace and F-Type) are excellent value for money vehicles that should be given a chance to show case what they are without hindering them. Jaguar should be making very focused efforts to not just market and positively help these cars sell, they should also be removing every possible (as minute as it can be) negative factors. Its very hard to stand out in a crowded auto industry with only positives, you should also find ways to prevent owners from complaining!
But the concern is how fast it is depreciating and what factors are contributing to it. Even more so, the concern is the very company selling the car which is a really good one at that is affecting its value proposition without thinking relatively long term.
It will sound like I am being quite biased here, but bear with me:
Don't tell me none of you felt that this car was an absolute steal for the money (with or without discounts). It checks most of the boxes (at least for me) and I believe it does for most of the target audience. Comparing to the available alternatives and their lack of value perception, this is definitely a "winner".
Yes, every company wants to move the prior model year out before the next model year production starts. Yes, they have volume targets and increases YoY to meet. But this is what I mean by the company not thinking "relatively" long term. Let the volumes come from specific models targeted for volume (aka XE, F-Pace, XF). But why should your halo car and the customers who buy them even for a moment feel anything remotely associated with "loss of value".
Comparing the depreciation of this car to a BMW/Merc/Cadillac "just another car" models is a no-go. They are so very different cars from perspective of what their manufactures think of them.
And why cant Jaguar think of it as: Get folks on F-Type -> Make them feel special (which they do we ll I guess) -> Let the customer appreciate the car and its value proposition -> Let them understand what Jaguar as a brand is -> Lets get them moving up the model hierarchy to an even more special F-Type 2-3 years down the line.
So if you really see it, I'm cribbing about the fact that Jaguar took away my feeling of "wow, this is amazing value for money. I can enjoy it for 2-3 years and trade it in for the next version / mid-life update". Another year from now, I will think a lot more when its time to trade it in simply because the car is worth much less than its supposed to be.
My RR Evoque bought for $53K was traded in for $44K (both prices do not include tax). Thats less than 20% in 2 years. All external factors aside (optioned up cars, new model years etc), Jaguar I believe could have helped the situation here by not kicking prior year models out the dealer lots in a hurry. They could have extended model years to be 18 months instead of 12 months. They had the room for it.
I'm just being a "manager" who does not want to listen to excuses - jut make it happen. I believe their new line-up (XE, F-Pace and F-Type) are excellent value for money vehicles that should be given a chance to show case what they are without hindering them. Jaguar should be making very focused efforts to not just market and positively help these cars sell, they should also be removing every possible (as minute as it can be) negative factors. Its very hard to stand out in a crowded auto industry with only positives, you should also find ways to prevent owners from complaining!
#15
Have you also taken into consideration that the $ has gotten a lot stronger vs € and £ over the last couple of years?
That should contribute to reduced import prices to USA, which could explain some of the good offers that are awailable on new cars.
The Norwegian currency (NOK) has dropped in value vs all the above mention currencies, so most new cars have increased in price over the last year and good offers are almost impossible to find.
That should contribute to reduced import prices to USA, which could explain some of the good offers that are awailable on new cars.
The Norwegian currency (NOK) has dropped in value vs all the above mention currencies, so most new cars have increased in price over the last year and good offers are almost impossible to find.
#17
#19
2016 Jaguar F-TYPE Base, $64,918 - Cars.com
FWIW, this rather nice base car is listed below the base price, with a few options - ad mentions the price includes 'a $5k rebate'.
FWIW, this rather nice base car is listed below the base price, with a few options - ad mentions the price includes 'a $5k rebate'.
#20
Dealer in OKC has a bunch of '16 listed as used with no mileage. Loaded R convert is $15k off! This is something that happens at Maserati dealers big time, must be put into a demo class and then get big incentive from manufacturer. Some dealers offering $16k off an $84k Ghibli S with $8k from Maser! And they don't ship '17 till Aug. Seems Hornburg Jag in LA does same thing, lots of new at their dealers listed as used on Cars.com!