I have never understood this. How do you not have a payment? Every month your vehicle is worth less and less. You continue to pay for the life of the vehicle. You just chose to make all the payments up front.And just like that, I’m out of the market for a Ridgeline. It has nothing to do with 2019 vs 2020 and everything to do with driving a soon to be paid for vehicle. I’m opting to save the payment for the next 2-3 years and see what’s what when I’m ready to buy.
Sure, all vehicles hit some bottom eventually but at the same time the maintenance continues to rise. The older it gets and the higher the mileage climbs the maintenance costs increase.
The longer you keep your current vehicle the less equity you will have to place into the next one. There is a decent plunge in value at certain points in both years and mileage. By 5 years options no longer matter significantly to a value.
Edmunds simply apply a standard depreciation model to get their prices. It's been like this for years. KBB does similar. It's date based. I've priced cars and sometimes redone it the next day and seen 1500 drops or more when you get closer to the next model year release.When I got home, I repeated this test on Edmunds.com. I used an RTL-E with 12k miles in outstanding condition in all 3 scenarios. Here's what I got for a private party deal:
I realize that none of this is exact. It's whatever the demand is and what buyers are willing to pay. However, the situation looks a little more realistic than what KBB displays. I have never trusted their values. I use Edmunds and then look on various "for sale" sites and try to determine a fair value.
Those thinking a two year old vehicle that is only a couple grand less than new are crazy. You may be getting that from dumb buyers who just cant seem to buy new or feel used is somehow a better value?
To buy a 2 year old vehicle with 15-30k miles to save 2-3 grand seems short sighted. Especially if you finance. You will get more warranty, better rates, less chance of a headache (why the other guy dumped so soon).
Unless you are saving substantially, like 5-6k, you should never buy used within 1-2 years compared to new. Plus when you buy new, you have a much better idea of the actual price compared to used where you know the typical dealer (assuming it's not a private sale) paid way less for the same vehicle. Most dealers are gonna figure at least 3-5 buffer to take in any used vehicle.
I have no idea why Honda would continue to further soften the RL imagine by going push button shifter? Just making it all the more comparable to mini vans and suvs? And in my opinion the new Passport will fail. My neighbor, who is 70+ bought one. It's proportions are weird, it's priced in Pilot and RL territory, and really does not look much different, and in my opinion less practical than either. Off roader, come on?! Way better vehicles for that the a front drive biased Honda. But I guess there are enough fan boys to buy anything Honda.
Point being, I expect the 2020 RL to struggle with sales as the mid size market gets more and more real trucks. The Gladiator, the new Ram Dakota, redesigned GM offerings.
Everyone here always touts Honda only wants to make so many. What a horrible business management perspective if that is true. Why would you not want to sell as many as you can, vs. just sell the few you offer?
Honda ain't what it used to be.
On top of that all the big 3 offer 50k plus trucks with at least 10-13k off. Yeah, the perception may be they are junk and the fan boys think Honda builds a better mouse trap, but for less money you get way more vehicle as Honda just refuses to adjust pricing. Good for them. They can find 12 people per state per week to buy a RL. Meantime Ford sells an F150 every 30 seconds.