[touchupman]

If anybody has been watching as close as I've been, the 04 GTO's are depreciating quicker then any other car i've seen in years. Sticker was 33K and as of Feb black book shows 18,900 on wholesale value. Granted Kelly blue book shows 24,500 dealerships and big car buyers use the Black Book. I've decided even though the GTO is a great car, to sell mine. I might be wrong but the 04's are taking a BAD hit and haven't leveled out. Good Luck to the many GTO owners.

 

[GTOJon]

The depreciation of the value of a car is really only a factor (to me) if I planned on selling it anytime within a few years of purchasing the car. I think, if you plan on keeping the car for a few years or more, regardless of the resale value, it's worth it. But if you are looking to sell it in a relatively short period of time at top dollar, I guess you did the right thing. But I plan on keeping the car (when I get it) for a while, so the enjoyment and years I get from it will be well worth it.

 

[Legionaire]

I hope you didn't buy this car thinking you were making an investment!!! If so let me tell you cars don't make good investments!! the circle always turns and trends change! What sells for decent money today doesn't in a few years!

 

[fastgoat]

I hope you didn't buy this car thinking you were making an investment!!! If so let me tell you cars don't make good investments!! the circle always turns and trends change! What sells for decent money today doesn't in a few years!

:agree

 

[jontyrees]

Selling it is the worst possible thing you could do - it doesn't make any sense. The only way you can get hurt by the admittedly steep depreciation is to sell the car - which is what you did. Didn't you intend keeping it for a decent while when you bought it?

 

[Tom]

So what did you get? Your logic is exactly why I leased mine. at the end of three years if I still like the car I will try to negotiate withGMAC. if they blow me off, i will give them back the car and buy a cleaner one from someone else for less!

 

[muohio]

So what did you get? Your logic is exactly why I leased mine. at the end of three years if I still like the car I will try to negotiate withGMAC. if they blow me off, i will give them back the car and buy a cleaner one from someone else for less!

That's what I did, but I plan on buying the next generation GTO which will hopefully be superior.

 

[fastgoat]

Somtimes vehicles are risky business ... My dad still works for GM and gets the PEP GMS discount, which is one of the, if not largest discounts avalible by GM. The past 5 years he has been buying vehicles with a high residual value, getting a ballon note on them, and then selling them after the time limit required my GM.

GM cars with the highest residual values are Cadillac Escaldes, H2s, CTS-Vs, and Chevy Suburbans arent bad. A ballon note is a car bank loan that starts with a very small monthly payment and as time going on the monthlys increase exponentially until the loan is payed off. The key to earn money from the deal is to sell the car within the first 2 or 3 years. 75% of the time you make some cash from the deal. 20% of the time you drive a really nice car for free for 2 years. And 5% of the time you may take a hit depending on your timing.

 

[idareu]

I did a smartbuy on mine only because I know that if a car doesn't sell well new it won't sell well used.

 

[Tom]

The past 5 years he has been buying vehicles with a high residual value, getting a ballon note on them, and then selling them after the time limit required my GM.

If it wasnt for the discount your father would be so far under water that the tsunami would like a ripple.

GM and high residual is the second best oxymoron. the best is gm customer service.

 

[catchmeifucan]

Of course the value was dropping like a lead balloon. This was because all of the end of year rebates to get rid of the 2004s. You picked the worst time to sell it as the depreciation will level in 2005.

Anyway, that is why I leased mine with the others. The 3 year residual was $19K back in October when I bought mine. It will be no where close to that in 3 years.

This was my first lease ever. Not really a big fan. But, with the residual value up in the air, I thought this was the best option.

Worse case scenario is that I can drive a great car for 3 years and turn the keys back in to the dealer.

 

[jetix]

Selling right now was a poor decision. You took the biggest possible hit by doing that. I feel the customers like myself who purchased '04's at years end just got smoking deals & the market will stabilize in the spring. If you didn't want to suffer high depreciation you should have waited for the end of year or purchased a clean one owner used car.

 

[DaveGesp]

There is no loss if you don't sell! If you were one of the lucky ones to buy one ..... sit back and enjoy the ride.

 

[PWR_SHIFT]

This begs a question to which only time will bring the answer, but lets here everyone's take on the '05s.

My feeling is that they will also depreciate rapidly, although not as bad as the '04', unless GM announces another big upgrade for '06 (which I don't think is coming - they blew their wad on '05s and now need to get a return on the "investment") then this car will drown in incentives all over again.

I'm sorry, but I just do not see the '05 catching on like wildfire, what with only scoops, dual exh. outlets, 50 more HP and bigger brakes added. There were those of us that decided to wait for the '05s for those reasons, but I doubt that there are thousands like us. Lets face it, it was a really nice car to start with, and in '04 it didn't have that glitzy new pony to contend with (same basic audience), it was basically a class of one. Most people are just about looks, and the GOAT's are too smooth and Euro (Brits seem to love Monaro's styling, I hear their '04 allotment sold out in under 4 months!).

Bottom line - buy it because you like it, not for investment, but the smart money will wait and see how it plays out for at least a few months.

 

[fastgoat]

If it wasnt for the discount your father would be so far under water that the tsunami would like a ripple.

GM and high residual is the second best oxymoron. the best is gm customer service.

That is exactly right, they key is timing and choosing the correct vehicle. While GMs to tend to depreciate more rapidly than some of the imports out there, for instance , there are several GM models that tend to hold a value better than others. The ones I mentioned for instance.

 

[cuspid]

You took one hit, it is not wise to take another. The largest depreciation is the first 2 years. Thus buy a 2 year old car to begin with, unless you can buy a new GTO for $18k

 

[Ripley]

In Jan.1995 I bought a 94 Impala SS with 43,000 miles on it for $11,000. Resale value was awful because of such high mileage and at the time, Mags like Car+Driver and MT said "who would want this car?" , "who ever heard of a four door SS" and "it looks like Shamu the whale". Once they were gone, the value just grew. Why? It's a 260 HP, 4200 pound four door. Aftermarket parts for LT1, awesome; and Everything you could want for brakes, suspension,etc. easily available. With 95,000 miles on it, I've rebuilt the trans, brakes, suspension and bolt on mods for the motor. So in ten years, nothing much more than maintenance costs.Cult value today allowed me to sell that car two months ago for $15,200. For $4,440 more, I bought a brand new M6 GTO, from a very unhappy dealer who feels GM screwed HIM by marketing the 05 as they did.
The LS1 GTO has every potential to be just as defiant of "normal" depreciation in my opinion. 350 HP, 3700 pound two door, no less or more ridiculed for it's "styling" than the 94-96 Impala SS. Notice that it didn't matter that for the last ten years there were lots of faster , better cars than the Impala SS.
PS. I've got a T-56 conversion 94 Caprice/Impala clone that I've invested $8700 in, with a book value of $2700. I've been offered $16,000 for that.

 

[Tom]

No GM cars hold their value as good as their foreign counterparts. But there is a zinger. reduce the purchase price by the employee discount, or the rebate, or the incentive, or the amount the dealer will discount the car and suddenly they depreciate at the same rate as their foreign counterpart.

The great part about leasing a GTO at the end of 04 was the fact that GMAC didnt adjust the residual and left it at 56% for three years, but took about 30% off the sticker price with all the rebates.

Zach, i respectfully disagree with your list. take out your fathers discount and a Honda is a better deal.

 

[EdwardC]

I am not sure of the source but I have heard that the '05 GTOs may become available, on a limited basis, for rental with Enterprise. If this were to happen, what does that do for the car's market value?

 

[LS1GTO]

A typical american car loses a third of its value when you drive it off the lot. If you bought the car for $30K its now worth $20K. If you paid sticker or higher for the car, this is a fact of life you have to accept. Looking at a car as an investment is a bad idea IMO.