Falling Prices?

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We bought our `04 new for several reasons, not the least of which is the fact that no one else had ever driven it, it had a new car warranty, and it was to be the family hauler/camping/expedition vehicle. Safety was a concern (thus our criteria included traction control, side curtain airbags, etc.). So was convenience (Bluetooth wireless phone connectivity, DVD nav, rear backup camera [which could arguably also be a safety feature], etc.).

The main reason, though, is that we plan on keeping it for at least ten years, if not forever, and driving it into the ground. Our `94 is now 11 years old and still running like a champ at only 150K miles.

When talking about depreciation rates, there is an interesting conclusion that I have been able to draw. If a car is engineered to last as long as a Toyota, and have excellent reliability for the life of the vehicle, then depreciation will be low because people in the market will understand that a used vehicle of that make is almost as good as buying new, which will tend to drive used prices up. Mercedes used to have the lowest depreciation rates in the world, not coincidentally because they were an ENGINEERING company and built cars with superior engineering, durability, and very good reliability. "Bulletproof" and "bank-vault" were common terms associated with those cars. However, since then, with new management starting around 1995, they have shifted focus toward the bean counters and marketing folks, and started building cars like the American companies (cheaper components, especially electronics, shorter lifecycle, more complicated unnecessay features for "Wow" factor, etc.). And guess what? Mercedes now depreciates like an American car.

My $0.02,
 
How low can the prices go before you consider buying another LC because the deal is too good to pass up ?

I bought my 98 with all options.. garaged kept and dealer serviced every 3K miles..

had 70 K miles for $19K.. and this was before the phony gas crisis !

I will buy another if people want to give them away because of fuel costs. I will always need transportation that can do what the LC does, and other cracker boxes can't !
 
I went and looked at a 2000 LC w/51,000 at a Toyota dealership today. It has been on the lot for 4 months now.

At $33,000 I told them that they were out of their minds.

After a test drive (could use some more power, but lightyears ahead of the 80) they offered to talk about the price. I couldn't believe it when $21,000 fell out of my mouth when my brain wanted to say $17,000 and $21,000 max.

Well a manager came out and slid a piece of paper my way that had +$28,000 on it.

The whole ordeal was quite strange, I thought that they would focus on cash and price, but really their focus was on my 80 that I drove up in and my credit.

When I told them I was 1099, and how much I make an hour, one of the sales men did a double backflip but again the manager just focused on the 80 and credit.

Needless to say that the 100 is still at the dealership, but I thought that I'd just throw this in the fryer. I guess everyone that goes to a dealership to purchase a LC is out of their minds and they just threw me in with the lot.

On a even funner note: while buying sparkplugs for the 80 the salesman brought me 8 of them. And even funnier there was a SC with 8 little runners on it. I asked the salesman about that and he says "it goes on some v8.... it's been sitting there for years!".

It's a crazy world.
 
I find it extremely interesting reading the prices in which people pay for Landcruisers overseas.

I just purchased my Landcruiser V8 GXL (Mid Spec) for $70k, and no-one over here compares the LX470 with the Landcruiser.

We all know that they are one of the same, though you will pay $130k for a LX470 here, which is double that of the L/C.

You can buy a L/C Sahara (top spec) including everything such as leather, sat-nav, sunroof, dual air, traction control etc, etc for $85k which is still $45k cheaper than paying for a Lexus badge.

However, 4 years down the track, the cost to buy a used one is very similar between the two, maybe about $5-$10k difference.

Landcruisers in this country are renowned for their legendary re-sale values. You can expect 68% of the original purchase price 3 years down the track.
 
Those are Australian dollars though, so dividing by 1.29 AUD/USD, we get $70K AUD=$54,264 USD, $85K AUD=$65,891 USD, and $130K AUD=$100,775 USD for the LX470. Wow!

When I looked at 100s in Thailand a few years ago, they came out to $50K USD...a heck of a lot of money for over there (you can build a custom home in the countryside for $30K USD). The cheapest I've seen is in Japan (2 grades for the 100, then the LX grade). The lower grade is about 4.5 million yen, which is $42,857 USD or $55,285 AUD (same price for the V8 or TD, A/C standard). The catch is, when you buy a car, the taxes total to around $10K USD for a $40K USD car (so 25%), and the reg. fee depends on the engine displacement and vehicle type/size.
 
Yeah, we cop a luxury car tax here, which is calculated at 28% on every dollar over $55k which is why the LX470 is so expensive.

There is a long winded debate in this country also in respect on whether it is wise to buy the T/D over the V8.

The T/D is $11,000 more than the V8, and diesel fuel is also 10-15% more expensive.

I don't care, I love my V8................
 
Sweet deal

March 2005 I bought a Jade Green 1998 LC 111000 miles loaded including rear locker. It was setting on a Washington State pre-owned car lot for $19995.00 I pulled in looked it over very carefully and ask if they would take $17000.00. The manager said how about $1850.00 and said she’s in immaculate condition. I repeated $17000.00 cash. It was about 20 minutes before closing and he said nobody really pays cash. So I said if I could put $17000.00 in your hand before closing will you give it to me for $17000.00. He said you only have 15 minutes and smiled. Well my bank is ½ block from his car lot and so I called the manager of the bank branch on the way, he met me at the bank door with 17k cash. I made it back to the lot and all he kept repeating while he was counting the hundreds was nobody really pays cash :o . They had put new Tires and wheels and I asked for the warrantee papers in case I needed it down the road. The receipt showed the cost of tires and wheels were $1500.00. I have found nothing other than regular maintenance need to be done and I feel as though I bought my LC for $15500.00 because of the tires and wheels sweetened the deal. :cheers:
 
Bloodhound said:
March 2005 I bought a Jade Green 1998 LC 111000 miles loaded including rear locker. It was setting on a Washington State pre-owned car lot for $19995.00 I pulled in looked it over very carefully and ask if they would take $17000.00. The manager said how about $1850.00 and said she’s in immaculate condition. I repeated $17000.00 cash. It was about 20 minutes before closing and he said nobody really pays cash. So I said if I could put $17000.00 in your hand before closing will you give it to me for $17000.00. He said you only have 15 minutes and smiled. Well my bank is ½ block from his car lot and so I called the manager of the bank branch on the way, he met me at the bank door with 17k cash. I made it back to the lot and all he kept repeating while he was counting the hundreds was nobody really pays cash :o . They had put new Tires and wheels and I asked for the warrantee papers in case I needed it down the road. The receipt showed the cost of tires and wheels were $1500.00. I have found nothing other than regular maintenance need to be done and I feel as though I bought my LC for $15500.00 because of the tires and wheels sweetened the deal. :cheers:

Another good deal! :)

It's too bad that so few people really know what a cruiser is, otherwise the prices wouldn't be dropping so badly.

Prices go in cycles and in this case fuel cycles; I think the price to fuel ratio is in favor of the buyers right now. In fact I think that another $5000 drop in prices($13,000 100k 98 -00) could be in our future.
 
Drop in prices,

Well I am in the market for 80's series now. I am waiting a little while longer, hopefully the bottom will drop out. I have been watching the market daily for about 6 months, it is true they are starting to go lower again. My thinking in about a month, prices will be very good. I hope, I hope. Why the 80 you ask? I want F & R lockers.

Thanks
SS
 
Grouseman said:
Drop in prices,

Well I am in the market for 80's series now. I am waiting a little while longer, hopefully the bottom will drop out. I have been watching the market daily for about 6 months, it is true they are starting to go lower again. My thinking in about a month, prices will be very good. I hope, I hope. Why the 80 you ask? I want F & R lockers.

Thanks
SS

Not to do an 80 hijack, but....

I see 80's (93 - 95) in the >$8000 and quite a few around the $6500 range, F&R doesn't matter in the price. The real trick is to find them in that $$ range with about 100k to 130k on them.

Just last night I found 3 80's on cars.com autotrader.com and ebay.com(buy now) that fit the bill.

One thing that I've leand in life is to be always 180 out of phase from everyone else. Gas is high buy big cars gas is low buy small cars, it's just an easy way to pick up bargains.
 
Rookie,

Well said. If you do the opposite of what the general public is doing, you typically are doing the right thing. If everybody is selling something you buy, etc. If they are buying you sell.

SS
 
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