Resale Value

[Turbo42]

Originally Posted by chieftmc

Even THEN, there is NO guarantee
(ask the folks who are upside down now !)

BUT, it IS the best LLLLOOOONNNNGGGG term investment

Well it is those peoples fault for buying a house for an outragous price that is was not worth!!!!! lol

[tivoboy]

Adjusted for inflation, housing has not made any decent returns over the past 20 years, unless one found a low price and sold at a high price during a boom.

the real advantage is that as an investment, when people have NO idea what to do wit their money and or would make VERY BAD investments putting ones money into their HOUSE can be a better choice than the alternative.

I've rented now for the past eight years, definitely the last four thinking the housing market was way too frothy. I put that money into my active market account and have average over 30% a year.

I also live in the bay area where albeit expensive from a nominal standpoint, the cost of renting relative to owning a house is the cheapest in the nation at less than 49%

this video sums up a lot

home economics the hidden costs of the 'american dream': Tech Ticker, Yahoo! Finance

[chieftmc]

Originally Posted by Turbo42

Well it is those peoples fault for buying a house for an outragous price that is was not worth!!!!! lol

Very true, Very true

Glad mine's paid for

[stressed member]

Need the interest to get into a long tax form. How about you?

[chieftmc]

Originally Posted by stressed member

Need the interest to get into a long tax form. How about you?

I do just fine,

[sunnyokanagan]

2005/6 smart cars in Canada that cost $16-22,000 new are selling for $9-15,000 in the used market.What's that... 60% after 4 years?

Mind you, that's the diesel, which is more robust, gets 70mpg and is more sought-after than the 451 gasoline model.

FWIW,
Bil

[chieftmc]

Originally Posted by sunnyokanagan

....Mind you, that's the diesel, which is more robust, gets 70mpg and is more sought-after than the 451 gasoline model.

FWIW,
Bil

Yea, that's right Bil, rub our noses in it !!

Wish we COULD get the diesel

[sunnyokanagan]

... sorry 'bout that, Chief.

[saskdiesel]

Sounds about right.
But the Mini is enjoying the best resale out of many cars. Not just the Smart.
A 3 year old Smart in western Canada is worth half of what you paid new. Not bad for the market share it has.

[raiden658]

Residual value on a lease is illusory at best. Each finance company supposedly uses an outside independant service to determine the residual value - that is what they will sell the vehicle to you at the end of the lease (or they hope someone like you.) That being said, each bank will generally have a different residual value, but often times they will also have a different interest factor that they will charge. As an example, two years ago, I leased a CLK 550 convertible. Mercedes Finance had a residual value of $34,000 on a $70,000 car (after three years of ownership.) Bank One gave it a residual value of only $27,000. However, the monthly payments were almost the same, the difference coming from the interest factor that they charged - Mercedes charged a lower interest factor, while Bank One charged a higher interest factor - the results were within $50 per month (Bank One was actually cheaper), now in one year I can buy the car for $7,000 less by having gone with Bank One, or I can just walk away and buy a certified pre-owned from mercedes or I can by another smart.