It's not an extraordinary amount of money to lose on a car - it's typical if not less than normal. The MSRP of an AWD Q50S is about $47k and I'm sure you could get it out the door with a few thousand off the retail. Well, according to your logic, this car shouldn't take a massive hit once I drive it 1 mile, right? Wrong... your car is worth less than $33k on trade in excellent condition. I'm not looking at it to support my argument, it just is what it is really. The second you title any new car it is used, but that's not a realistic negotiation tool. I can't walk into the dealership and ask for a discount just because the car is used after I buy it. You're buying the warranty and the fact that the car is in new condition without a history and a story behind it (typically).

 

^^ Oh come on now, you (conveniently) chose a 2014 model, when we are clearly in the year 2015, so it's automatically one year old and basically represents no more than an incremental step between a truly brand new 2015 model and that 2013 model, AND it's a whole different model/generation of car which blows any direct comparison. If the last G lineup was still in production, then the new 2015 model would have been selling for 6-7 months already and comparing to it would be more appropriate.

Aside from all that, and if KBB is to be believed, the example you chose shows a fair purchase price range of just $40.6K - $42.8K new, which is a bit more than just "a few thousand off" of the 47K retail price you noted. Further, you selected the dealer trade in value, which yields the absolute lowest possible resale value. If you had looked at a private party sale value, it would have been over 36K. When I ran the 2013 car on KBB, I looked for the highest possible value an individual could get when reselling it.

If anything, this exercise only reinforces what I am saying; if you buy an older model as new, then you take a greater hit in value as soon as you drive it away. There is no way a 2015 model would see as large of a hit in value after you drove it off the lot, than a 2014 that was purchased the same day would, let alone a 2013!

Just to be clear, I'm not suggesting there isn't an immediate value hit to be expected when you purchase a new car. What I am suggesting, is that the amount of that hit gets disproportionately larger as the number of years grows from whatever the current model year is. While I know that there is a legitimate intrinsic value associated with being the first owner of a car, I also recognize that that value is limited. The relative cost of that intrinsic value can easily be measured by seeing what the highest price is that you could sell it for the day after you bought it.

.02

 

I didn't conveniently select a 2014 model, it was the "newest" option available. Also, I did not use the dealer trade in value due to the fact that it is the lowest value, it is the value that was used to calculate what the 2013 G37 was worth earlier. People don't generally buy new cars and sell them right away - so this is honestly a poor metric to even examine. The fair purchase price of the car I received the quote for, is not "$40.6K - $42.8K new" as you specified, it is a Q50S AWD with navigation and leather packages - you must have inadvertently not selected all of the appropriate options when attaining that quote which would skew it low.

This exercise does not reinforce your argument at all. I have presented examples supported by evidence, and you have presented opinions supported by more of your opinions and attempts to invalidate my evidence with your thought and opinions. The best of your argument is supported by word of mouth facts, opposed to the screenshots I am providing for you to review.

The price drop of the older "new car" will be more than the current model, but so will the discounts. This is not disproportional at all. If what you were saying made any sense at all, it would be a better "value" for him to buy a brand new Q60 for what TrueCar seems to think is fair - $46,349.



Even if you get the car at invoice you are over $45k. Then in a couple years, these cars will be worth a few thousand dollars apart just like history has shown, after paying $10k more to get the "newer model". Same miles, same warranty, different year and $10k extra. If you don't think that $10k will depreciate away over time I don't know what I can convince you of. You are guaranteed to lose less money in depreciation over the long term when your initial investment is $10k more on the same make/model/mileage and the model year will play a small factor in the value a few years down the road.

I have made my points and stand by my argument, but I do have one more point to validate - that this exercise is pointless. I will support that by not wasting anymore of my time researching and explaining how you are misinterpreting the depreciation and value of cars.

 

vqsmile, you are suggesting that the OP buy the car only for what it can be resold for. That's flawed. In addition you cannot compare private party sale vale to retail value. The car is, at the very least , being sold for retail value. In addition the car has never been titled so its not "used".
In October 2014, at my local dealership, there were still 4 2013 G37s on the lot unsold. (they happen to all be grey or silver). People were simple more interested in buying the newer models or other colors.
After Infiniti provided some clearance rebates and incentives, the prices on those cars (similarly equipped) were $36,000ish.. At that price the salesperson only got incentive money and no commission.
The dealer is probably holding firm to the lowest number that they can make a profit or nearly break even. There is no reason not to sell that car as quickly as possible at the lowest price possible unless they were taking a loss.

 

Now on that, I can certainly agree with you.


No, but perhaps your reading of my posts has been flawed.

I never once suggested that the OP should buy the car only for the amount that it could be resold for. In my earlier post, I said the suggested "extra value" in the car, due to being sold new, was not worth 8-10K.

Further, from my last post, I'll repeat:

While I know that there is a legitimate intrinsic value associated with being the first owner of a car, I also recognize that that value is limited. The relative cost of that intrinsic value can easily be measured by seeing what the highest price is that you could sell it for the day after you bought it.

You see, there was never any suggestion to purchase it for ONLY what it's resale would be.

IDK, perhaps this whole exercise has been provocative because it challenges (or threatens?) people's belief about the value of their own asset. At the end of the day, any car's worth is only what someone is willing to pay for it, and it can be said that (coining a phrase directly from the auto sales industry here) "there is an A$$ for every seat". So then the question with regard to this car is, who will be that A$$?

 

i bought my 2010 in 2011 as the 2012's were dropping i walked out the door paying 30,000 even (sticker was 42500$) base model journey coupe AWD only option was mudflaps

 

So, you got $12,500 off the sticker which is right in line with this car. The sticker is about $49,000 on this car and they are asking $36,000, which is roughly $13,000 off the sticker price.

Thanks for adding your data point - purchasing a new car that is 2 model years old.

 

Agreed. The dealer said that if it doesn't sell for the price they want ($36k+), they will have to sell it at auction.. Good luck with that, they won't get $36k+ there either. I will wait a few more months and see. I'm in no rush. I may wait for the new model. I got my current 2010 coupe for a steal, CPO car, 29k miles, $21k final price in 2013. Dealer sat on that one for a while too. I waited them out. They started at $30k. It's a base rear drive model only that known wanted, LOL! I wouldn't buy one of these cars loaded, not worth $$, unless good deal. To get GPS built in, on these cars you need to pay nearly $5k in packages, no thanks.. $99 Garmin or iPhone with GPS.

 

^^ Sounds good. Keep us posted

 

i love sticking it to the man and people that stick it to the man! keep up the good work!

 

I used to think the same regarding Built in GPS navigation but ever since I have owned a car with it built in ... no turning back regardless of what package I buy.

 

In the case of the G37 Coupe, GPS is a $1850 option and you need to buy the $3250 premium package, that is nearly $5k to get GPS, not worth it. I've owned cars with and without built in GPS, they systems they use stink in comparison to the aftermarket portable. Not to mention on some the passenger can't even change the settings till you come to a complete stop (Lexus). $99 to $149 Garmin is better than the unit in the Infiniti. Updates to the built in car GPS cost same or more than a new portable unit, LOL!

The dealer has lowered the Price on the 2013 G37 to $35,990... Still too much. They started at $37k. I will keep waiting them out, LOL!

 

Just curious, what is your price?

 

As I mentioned, I understand that, If I'm going to drop 30-50k on a car, I'm OK with spending another 5k or so to have GPS built in as well as the other items a package offers. To each his own ...

 

The dealer will for now go as low as $32,500, we are making progress... But not good enough. They are also offering nearly $3k less for my trade in then 2 other dealers have offered. The games dealers play... They admitted my car is in great shape and nice. My price for their car is $28k to $30k.. I'm in no rush, nothing wrong with my ride, only if get the great deal. Time will tell.