RESALE Concerns.

[Hotrodlincoln]

Am I alone? We are looking to replacing our Dodge Journey and have been trying to sell private with very little luck and resale is really low. Now before you comment with brand bashing, consider our experience. We bought the dodge new and its just over 5 years old with near 60k miles. This vehicle has NEVER been back to dealer for ANY problem. I believe they did a simple recall at one point during a service maintenance appointment(never effected us)....that's it. We have been very happy with the dodge in every aspect as its been a great performer with impressive features and impeccable reliability...however, we normally do not keep vehicles beyond 4 or 5 years old due to sheer boredom. We would look at another, but they are no longer in production with no word on replacement AND, the resale thing is concerning.
Everything about the Telluride (except lack of remote start keyfob) has our interest, but the sx is approaching 50k loaded up and it would sure be disheartening to trade in 4 years only to get 10k. Been considering a Honda for resale, but we really don't like either the pilot, or that new passport. We Looked at the GMC/chevy models and they are very nice, but way high priced, in fact not competitive and likely same poor resale scenario. Thoughts?

 

[Big T]

Have you looked at an Acura RDX or MDX? My wife has a 2018 RDX with Tech Pkg., and we like it...a lot. What I really like is the port injection 3.5 V6; lots of power. No issues whatsoever. Good luck.

 

[mrmac]

While your experience with the Dodge Journey was good, you have a few big factors working against you. First, Dodge is, and has been, among the least reliable brands. The Journey has nearly the worst reliability of any Dodge vehicle 2013 or 2014 and it’s owner satisfaction is pathetic. It is simply an undesirable vehicle to the broader marketplace.

However, even the top Journey R/T MSRP was in the $33,000 range and after incentives it was easy to pick one up near $25,000 plus tax, ttl, reg....

Those rebates, and fleet sales (rentals) permanently alter the resale value of a vehicle. Part of the reason Honda resale values seem to hold better is they offer very few incentives and don’t typically do fleet sales. Supply and demand in action: lots of supply and little demand.e

Even still, it is common to lose at least 50% and often much more of the lowest original purchase price of any brand new vehicle in five years. What will happen to Telluride values is anyone’s guess. My view is this: because it is a very well equipped and highly desirable vehicle at an excellent price point compared to it’s competitors, you can expect your value to be close to 50% or original purchase price in five years.


For example, if you had purchased a 2013 Suburban Z71, the typically equipped MSRP was $55,000. AFter incentives at the end of the model year, you could pick one up for about $46,000. With 62,000 miles it’s current clean trade value is $19,200 while clean retail is $25,150. That is 41% and 54% or original lowest purchase price, respectively.

I will buy my SX fully loaded Telluride for about $39,000 on a lease which I will also immediately buy-out. If I am right at 50%, you can expect it to be worth at least $20,000 in five years.

Of all the three row SUV’s, and I’ve been in all of them in the last two months, the Telluride SX AWD Prestige Package has the most in common with the BMW X7. A comparably equipped 2019 X7 40i retails about $84,000. It will likely be worth about 35% of that in five years. Fine, someone is going to say that nobody in their right mind is comparing a Telluride to an X7 and I will concur that I am often not in my right mind according to the opinion of others. However, if you like getting out of your comfort zone, go test drive an X7 and you can judge for your self.

Baring some major quality issue rearing its ugly head, I believe a pre-owned Telluride will be well valued in five years.

 

[Big T]

While your experience with the Dodge Journey was good, you have a few big factors working against you. First, Dodge is, and has been, among the least reliable brands. The Journey has nearly the worst reliability of any Dodge vehicle 2013 or 2014 and it’s owner satisfaction is pathetic. It is simply an undesirable vehicle to the broader marketplace.

However, even the top Journey R/T MSRP was in the $33,000 range and after incentives it was easy to pick one up near $25,000 plus tax, ttl, reg....

Those rebates, and fleet sales (rentals) permanently alter the resale value of a vehicle. Part of the reason Honda resale values seem to hold better is they offer very few incentives and don’t typically do fleet sales. Supply and demand in action: lots of supply and little demand.e

Even still, it is common to lose at least 50% and often much more of the lowest original purchase price of any brand new vehicle in five years. What will happen to Telluride values is anyone’s guess. My view is this: because it is a very well equipped and highly desirable vehicle at an excellent price point compared to it’s competitors, you can expect your value to be close to 50% or original purchase price in five years.


For example, if you had purchased a 2013 Suburban Z71, the typically equipped MSRP was $55,000. AFter incentives at the end of the model year, you could pick one up for about $46,000. With 62,000 miles it’s current clean trade value is $19,200 while clean retail is $25,150. That is 41% and 54% or original lowest purchase price, respectively.

I will buy my SX fully loaded Telluride for about $39,000 on a lease which I will also immediately buy-out. If I am right at 50%, you can expect it to be worth at least $20,000 in five years.

Of all the three row SUV’s, and I’ve been in all of them in the last two months, the Telluride SX AWD Prestige Package has the most in common with the BMW X7. A comparably equipped 2019 X7 40i retails about $84,000. It will likely be worth about 35% of that in five years. Fine, someone is going to say that nobody in their right mind is comparing a Telluride to an X7 and I will concur that I am often not in my right mind according to the opinion of others. However, if you like getting out of your comfort zone, go test drive an X7 and you can judge for your self.

Baring some major quality issue rearing its ugly head, I believe a pre-owned Telluride will be well valued in five years.

Outstanding reply and value analysis. Good job.

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[arckal]

I am in same boat, I have this Chrysler T&C fully loaded bought 5 years ago and planning to trade in with some bigger SUV like Telluride. Not sure what to do because trade in value seems to be very low.

 

[steelersmb]

I had a 2017 Audi A4 that I bought new for $54000 and after 2 years and only 36K miles it was worth only $28,000. If you are worried about an investment you should buy Toyota or Honda. I looked at the Acura MDX and it was so boring, nothing compared to the SX.

 

[stbentoak]

You take a bath on most any vehicle.. If you're really worried about deprecation, you should be looking at 1-2 yr old vehicles to start...
The only real way to "get your moneys worth" out of any vehicle is to drive its wheels off.... Resale and trade in on most any vehicle is gong to suck after 5+ years... and the more you
pay in the beginning the more its gonna hurt in the end.... Personally, I try to keep them to 100-150K miles if dependable, then take what I can get.. wash ,rinse, repeat...It's just a fact of life.....

 

[steelersmb]

You take a bath on most any vehicle.. If you're really worried about deprecation, you should be looking at 1-2 yr old vehicles to start...
The only real way to "get your moneys worth" out of any vehicle is to drive its wheels off.... Resale and trade in on most any vehicle is gong to suck after 5+ years... and the more you
pay in the beginning the more its gonna hurt in the end.... Personally, I try to keep them to 100-150K miles if dependable, then take what I can get.. wash ,rinse, repeat...It's just a fact of life.....

You only live once and can't take your money with you so you may as well enjoy life while you are here.

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[ucinn]

If your worried about an investment, you should be buying gold and not a car..all vehicles depreciate immediately after taking them off the lot. If you want to make sure and be in the black when trading it in next time, I recommend a healthy down payment.

 

[Hotrodlincoln]

The kia stinger (I think) was on the top worst car for RESALE VALUE, according to KBB I believe after a quick internet search for worst resale value automobiles. The kia sedonna was also top on one list I saw. Jeep wrangler and some Toyota seemed to be the best. Dodge challenger also best car for resale quite a few years. Some of these cars near top of worst list lost half their value in first year. Yikes! I guess I'm doing damn good with my 5 year old dodge....I was offered 45% of what I paid in trade for a passport which was also included a discount of a few k off msrp on the honda. I'm waiting for a SX to land at dealer here to work up some trade numbers.

 

[G-78977]

Keep in mind that published resale values are based on msrp, not price paid. Therefore if you buy a $50,000 msrp Honda with no discount and published residual value is $25,000 at 5 years that seems better than the 40% residual value ($20,000) of say a $50,000 msrp Dodge Durango that you might have bought for $40,000 originally —- but in fact each is worth 1/2 what you paid. Made up examples but you get the idea (also the reason that Sedona and Stinger have poor “residual values”). So... if a vehicle has a poor residual value, you better get a discount up front to offset it.