TRADE-IN VALUES OF POPULAR MODELS
TO TEST THE VALUES of late-model used vehicles, a few friends and I tried to trade in our existing vehicles on new ones. My own car is a Honda Accord bought in March 2006 for R225 000. The outstanding balance in terms of its 60-month HP – that is, the amount to pay off – is R157 000. The car has only done 24 000km.
The first offer on the Honda was in Zambezi Road in Pretoria, where I was offered R105 000. After some negotiation and on the strength of its low mileage the offer was increased to R115 000, plus a discount of R10 000 on a new 2008 Accord, which reduced its price to R270 000. Honda in any case offers a R10 000 discount plus R10 000 to anyone who comes in through its doors. The true trade-in value is R105 000.
With a bit of pushing I could perhaps raise the trade-in price to R125 000. That’s still R27 000 less than the outstanding amount on the car and R155 000 less than the purchase price of a 2008 Honda Accord, which actually differs very little from the 2006 model.
The costs for me are enormous. First of all, after 30 monthly payments of more than R5 200 each, the car is still worth R47 000 less than the outstanding balance. The difference between the 2006 model and the 2008 model is R155 000. That’s after only 24 000km travelled in the 2006 model. That works out at an effective depreciation of R6/km. It’s definitely cheaper to hire a car from Avis.
After a day of kicking tyres, my friends reported the following tradein values on their cars. • HONDA ACCORD, 2006 model, 24 000km on clock: Trade-in offer of R105 000 against book value of R145 000 is a value loss of almost 30%. • CHRYSLER GRAND VOYAGER, 2003 model, 120 000km on clock: Trade-in offer of R80 000 against book’s R141 500 is a loss of 45%. • VOLVO S40, 2005 MODEL, 72 000km on clock: Trade-in offer of R90 000 against the book’s R163 300 is value loss of 45%. • AUDI A4 TDI, 2005 model, 62 000km on clock: Trade-in offer of R115 000 against book’s R167 500 is value loss of 32%.