Depreciation

[NSX-GUY]

I believe this has been discussed before but I can't find it so bear with me here.

I am considering (again) an NSX but I have some concerns regarding the effect of either the NSX being discontinued entirely, or, a new NSX hitting the market, either around the same or higher price, or even a considerably less expensive version.

The current NSX' depreciation over the years, allowing for mileage and condition of course, have seemed to me to be very stable, predictable, and perhaps more importantly, acceptable (LOL)

Going forward, what do you guys think will happen to the existing NSX' value ?

TIA

 

[docjohn]

http://www.nsxprime.com/forums/showthread.php?t=42105&highlight=depreciation

 

[Da Hapa]

What will happen?

The car will depreciate. No two ways around it. Sorry.

But look at the facts. A well maintained, good condition, 1998 NSX will trade in the low to mid-$50K range today. When they were new, MSRP was $84K. That means that the car has held 62% of it's value (assuming it's worth $52K) after 7 years. That's damn good by any measure for a car.

"Prices" wil continue to drop and you'll now see early NA1 cars in the low 20's and eventually teens. But take a long, hard look at those cars. Most of them are not cars that I would consider owning (for various reasons).

IMO, depreciation shouldn't be a concern you have if you're considering purchasing an NSX. Insurance and tires are likely to cost you a lot more in both the short and medium term.

 

[ibDursty]

Barring really high mileage, I doubt you will ever see a ANY well taken care NSX depreciate under $20,000. They are just too, rare and unique for that to happen. If you aquire a good quality NSX, it will maintain it's value quite well. I don't think the NSX getting discontinued will have much effect on the curve. Since no new NSX is going to introduced in the new future that's a mute issue at this point.

Once NSX's deppreciate to 38k for the 97+ and 29k for the 94 or lower the curve really just flatens out. That one of the reasons why I choose a NSX over a new corvette. 55k new corvette after 5 years probably will be worth 24k or less (30k drop in those 5 years).

 

[nsxtasy]

Going forward, what do you guys think will happen to the existing NSX' value ?

I think it will be the same as we've seen. The market values on the older cars continue to be stable, with cars in nice condition getting close to the same prices they were getting five years ago. The market values on the newest cars will continue to drop, just as they always have as the cars get older.

I don't think there will be any effect due to the car's discontinuation or replacement.

 

[brahtw8]

I think it will be the same as we've seen. The market values on the older cars continue to be stable, with cars in nice condition getting close to the same prices they were getting five years ago. The market values on the newest cars will continue to drop, just as they always have as the cars get older.

I don't think there will be any effect due to the car's discontinuation or replacement.

That is my prediction as well. $25k seems to be the absolute bottom for a nice NSX. Below that price the demand will greatly exceed supply.

As far as I am concerned, the only thing reducing the value of my 93 is the mileage I continue to put on it.

 

[mackash]

That is my prediction as well. $25k seems to be the absolute bottom for a nice NSX. Below that price the demand will greatly exceed supply.

As far as I am concerned, the only thing reducing the value of my 93 is the mileage I continue to put on it.

I agree $25k will be bottom dollar for a nice one with high miles.

 

[NRG]

I agree with everyone...depreciation will always happen.

Let's say Acura releases the new version of NSX. My guess the selling price is probably around the 100K mark. If it's hot, then the demand will increase over the 100K mark. I think the older model 02 and up will continue to depreciate at the same rate as before.

Of course, just my opinion.

 

[NSXAU]

I've read this thread and then the other connected thread...and as an overseas owner looking in I have a request...on the table ..
http://www.nsxprime.com/FAQ/BuySell/pricing.htm
would it be possible to put in across the bottom the recommended retail for each of the year models manual and auto..
These cars in Australia even if you do the conversion of AUD to USD ..the gap in the pricing is huge..ie currently it would appear that a new NSX is ~ $80-90K USD, in Oz the NSX retail is $240-245K AUD, our price does not equate to 1.28x the US price [the basic conversion]..so to assess depreciated value over time based on original retail price, I can do the math in terms of the % of 'retained' value/%.

Thanks
David

 

[91 X]

all I know is that I bought my 91 in June 2003 and just recently sold her :frown: last month for $2500 MORE than I paid, $3700 MORE if you include the $1200 that I got for the OEM rims I sold after getting some Volks...Sure I put some money into her with 60K sevice, Bilsteins, Volks and other little things, but after enjoying the hell out of owning one for almost 2 years and getting back almost every penny I spent is something I don't think ANY other car could come close to doing in terms of "depreciation"...As long as you take excellent care of her, she'll take excellent care of you...That is why my wife is already giving me the green light on getting my next one as soon as the dust settles on the sell of current home and purchase of our new home :smile:
In essence, it was like having a savings account that you get to drive around town with a big grin on your face :biggrin:
That was just MY experience, with a '91 NSX...I'm sure not all experiences are the same with different years and such, so just MY take....


Can't wait for the dust to settle!!!


BTW, thats why they say when it comes to cars "NEVER buy new" unless you can afford to burn $$$ :redface:

 

[nsxtasy]

would it be possible to put in across the bottom the recommended retail for each of the year models manual and auto..

I'm not sure what you're asking. If you're asking for the original MSRP (that's the Manufacturer's Suggested Retail Price, when the car was new), market value doesn't depend on the MSRP. Heck, even a car when new can sell for less (or, sometimes, more) than MSRP.

As for the differential between the manual and the automatic, that's basically impossible to estimate, because there are so few automatics (around 9 percent of sales). With such a low-volume restriction, automatics are tougher to sell and thus you would sometimes expect to need to sell for less, but they're also tougher to buy and thus you would sometimes expect to need to buy for more. Overall, I think it's basically "noise" in terms of any effect on pricing.

 

[NSXAU]

Nxstasy - I will try to simplify my query..
I'm not sure what you're asking. If you're asking for the original MSRP (that's the Manufacturer's Suggested Retail Price, when the car was new), market value doesn't depend on the MSRP

As the pricing differences between Australia and the US for these cars is So different..the only logical starting point [for me] is from the original rec retail of the car..compare the % change from MSRP [USD] to those in your table... ie a cars value might work out to be 50% of its original ask price depending on its year and your grading system...

I take on board your comment of "who pays retail..." I'd ventue to say that here in Oz where only about 150 cars have been sold in 14 years, most Aussies who bought new probably did pay retail as not many dealers had them on the floor..FYI the NSX prices for the first couple of years in AUD were
91 - $165K
92 - $173K
93 - $196K
94 - $209K
95 - $210K but 96 and 97 years were the same ...current 05 year lists for $240K], did this same pattern occur in the US ..
If MSRP is completely irrelevant then perhaps a ball park "buy" figure for each year could help or maybe co-ords for a web site that gives supposed car values by year but happens to lists their original MSRP..

Automatics - I understand that 80 - 90% of NSX sold in Oz were autos, and from a retail price point were 'supposedly' $5k dearer...but you assessment of them for our market is true also, unless someone in the 2nd hand market wants an auto, there is higher demand for 2nd hand manuals..which were rarer and so can fetch a higher price to an identically presented auto.

Our opinions obviously differ on MSRP as a start point or benchmark but I'd like to pursue it, so any help would be appreciated from yourself or others...

My apologies for taking up peoples precious time :frown:
Kindest Regards
David from Down Under

 

[nsxtasy]

As the pricing differences between Australia and the US for these cars is So different..the only logical starting point [for me] is from the original rec retail of the car..compare the % change from MSRP [USD] to those in your table... ie a cars value might work out to be 50% of its original ask price depending on its year and your grading system...

I didn't develop the pricing chart, but I think it's intended to reflect only the market value of the NSX in North America. (Prices are similar between the United States and Canada due to the similarities of the cars between these two markets, as well as the ability to cross the border and buy a car in either country.)

I don't know anything about the market prices Down Under. I wonder whether there are even enough cars to come up with anything meaningful enough. The smaller the market, the fewer the cars for sale, and the tougher it is to find meaningful data.

 

[NSX-GUY]

I think it will be the same as we've seen. The market values on the older cars continue to be stable, with cars in nice condition getting close to the same prices they were getting five years ago. The market values on the newest cars will continue to drop, just as they always have as the cars get older.

I don't think there will be any effect due to the car's discontinuation or replacement.

For "discontinuation", I'd agree. I'd say depreciation will be very stable, and, in fact, prices might actually hold steadier than ever (it would be too much to ask for them to actually go up - although you never know).

For "replacement", IF the new car was priced equal to or more than the current car, probably the same situation as we have now; prices pretty steady (after all that's what happens in ALL Manufacturer's model lines).

But there have been rumors (here as well, I'm sure) of a super replacement priced well below the current model ($50-70K ?). After all, if Chevy can build a Vette like the C6 and sell it for $50-60K, why can't Acura ??? The Japanese have repeatedly shown that anything *we* can do *they* can do better (INCLUDING the price) !!!

If THAT replacement car actually comes out, what then ? Sure there'll be a market for the older, slower and prettier(?) current car (beauty IS in the eye of the beholder after all) and, with a lower price and presumably high demand Acura would then make it a "true" production car and make many thousands of them the current model will still hold *some* exclusivity, but will it's value hold relatively well, as it does today ?

After all, the current NSX is a niche vehicle, with a VERY small customer base and the laws of supply and demand STILL hold true. As such, if the well of buyers disappears (which, of course, is FAR easier with such a small fan base) POOF goes the resale value.

 

[NSXAU]

after an extensive 'google' I found this site most helpful on the history of cars pricing in our case NSX right back 1991, however I have a new ? ....what does the 'Dealers Invoice Price " mean,...thats a term we don't use Down Under in relation to new car's price

http://www.autoworld.com/apps/pricing/carprice.asp?id=61027&frame=aw

Regards
david

 

[heySkippy]

Dealers Invoice Price would be what the dealer paid for the car.

 

[brahtw8]

Dealers Invoice Price would be what the dealer paid for the car.

Yes and no. Invoice is what they may have paid, but often they pay less than invoice due to various incentives from the manufacturer or other discounts.

 

[nsxtasy]

Yes and no. Invoice is what they may have paid, but often they pay less than invoice due to various incentives from the manufacturer or other discounts.

True. Aside from incentives (which tend to be temporary, although they have become customary for the domestic marques), the other major factor affecting what the dealer pays is the holdback, which is a percentage deducted from the dealer invoice price. You can read more about the holdback here. Last I heard, the holdback on the NSX was 2 percent of the base MSRP.

 

[Osiris_x11]

I'll give yer the shirt off ma' back!

... the other major factor affecting what the dealer pays is the holdback, which is a percentage deducted from the dealer invoice price.... Last I heard, the holdback on the NSX was 2 percent of the base MSRP.

hmmm.... That is absolutely true & many people shopping for a new car don't know that. :redface:

Often you'll see or hear advertisements stating the following: "BUY NOW BELOW INVOICE!" Even if you are paying MSRP (what they want you to believe is invoice), they are still making a profit (as they deserve to, they are a business afterall!). :biggrin:

I believe there is a source to find out what the holdback % is on particular make/model. Unfortunately, I can't recall that now... :: sigh ::

Years ago, I got to see the little pocket "blackbook" that gives the price-index of a car's wholesale value. Very useful for end-of-lease acquisitions and auctions! I recall that you could get the blackbook by subscribing to some trade organization/group.

 

[NSX-GUY]

Hmmmmmm, was thinking about this again today and managed to find this thread with NO answers IF something like the HSC came out at 50-70K and what would happen with the current car.


I guess I'm needing an "intervention". :biggrin:

I missed(?) my chances at my primary option, an Imola 02+ over the last couple of months. 3 of them around pretty much at the same time and "missed" all 3.And now what - NOTHING !!!

So I'm now left with this itch that needs to be scratched. Since there are SO few options on an NSX, the color of the NSX, at least in my mind, is primary. Interior color secondary.

Needless to say, Orange is my first choice, Blue and Yellow my 2nd. There are several yellows out there now........

Still can't pull the trigger as I just KNOW, the very day I drive the yellow one home, an Orange one will pop up at a terrific price and THEN what ???

:redface:

 

[TURBO2GO]

Ok so an orange one pops up. Does it mean it will be in the same condition? as clean or with as few owners?

I think you need to find a car you like, pull the trigger and not look back. The NSX is one of if not THE least depreciating car in its class by FAR. And a terrific bargain for an all aluminum hand built ultra reliable sports car.

The new NSX won't be out until 2008 or later. There is no guarantee it will be a real successor. Plenty of companies have produced great cars and flopped with replacements.

Honda will probably be looking for higher sales #'s, which will automatically guarantee that the car will be compromised for broader appeal.

I truly think we won't see a repeat of what happened in 1991 ever again.

If it does turn out to be another hit, at least your NSX is still worth something in trade unlike almost any other car.

 

[Greg Z]

Hmmmmmm, was thinking about this again today and managed to find this thread with NO answers IF something like the HSC came out at 50-70K and what would happen with the current car.


I guess I'm needing an "intervention". :biggrin:

I missed(?) my chances at my primary option, an Imola 02+ over the last couple of months. 3 of them around pretty much at the same time and "missed" all 3.And now what - NOTHING !!!

So I'm now left with this itch that needs to be scratched. Since there are SO few options on an NSX, the color of the NSX, at least in my mind, is primary. Interior color secondary.

Needless to say, Orange is my first choice, Blue and Yellow my 2nd. There are several yellows out there now........

Still can't pull the trigger as I just KNOW, the very day I drive the yellow one home, an Orange one will pop up at a terrific price and THEN what ???

:redface:

I agree with you 100%. I'm having a hard time pulling the trigger, trying to wait for that perfect car/deal. Probem is I'm a very impatient man, but I know as soon as I think I'm not gonna find that perfect car/deal and pull the trigger on a lessor car, then thats when that perfect car/deal will present itself.

 

[whatisreal7]

Just ask people who've bought and sold their car within a 1-3 year period, and sold at the same price, and you will answer your question. I bought my 98 last year (22K miles), for $42K. I guarantee you I can sell it for more today.

 

[brahtw8]

Just ask people who've bought and sold their car within a 1-3 year period, and sold at the same price, and you will answer your question. I bought my 98 last year (22K miles), for $42K. I guarantee you I can sell it for more today.

My 1993 NSX lost $600 in depreciation after 2.5 years and 29,000 miles.

 

[TURBO2GO]

I was offered $3000 more than what I paid for my '05 six months ago. I did not take it.