With SO much speculation and negative comments about excessive depreciation with our G sedans, why would I even consider it? Simple, I've been kinda irked ever since finding out only a few weeks after buying my '03.5 that the '04 came with LSD, AND in my fav color (DG). Plus, I sadly (and rather quickly) came to the conclusion that my three kids were gonna do a real job on the willow interior. I am very pleased to report what went down...

- bot a '03.5 6MTs in early May '03 w/ sunroof, winter pkg, all-season mats, wheel locks MSRP $31,270 (base+options+accessories+dest chg). Paid $28,850 net (includes foregoing+doc and temp tag fees+dealer profit - excludes tax), made three (3) payments with total of $1,283 principal paydown since new.

- bot '04 6MTs w/ same options, accessories, fees and dealer profit for $29,150 net (excludes tax)

- traded '03 w/ 3,200 mi. for $26,300, about $190 less than the $26,490 payoff.

- agreed to additional $250 for dealer trade and delivery of new car from dealer 350 mi. away BUT, delivery fee reduced by $120 in free service ($80/hr x 1.5 hrs to install Stillen Cold Air Box and 350Z Upper Intake Tube I just happened to bring along!) for additional net expense of $130.

So I figure it cost me $300+190+130 or total of $620 to do the trade (you probably know the biggest price bump in '04 was $750 msrp for the 6MTs base model). For my $620, in addition to everything I had before, I now have an '04 6MTs in DG/G with LSD, pwr pass seat, tire monitor, improved CD, and some goodies installed. Pretty friggin' reasonable when you consider the benchtime plus normal new car purchase expenses and dealer profit x 2. Plus - the new financing rate actually declined too!

Man, I am so glad I took the depreciation horror stories with a grain of salt and made the effort to see what it ACTUALLY cost to trade. If you are contemplating a trade, maybe this experience helps you out. I say try it, you may be pleasantly surprised! One last thing...if your're on the fence re: colors - the Diamond Graphite/Graphite combo looks simply marvelous on the sedan! Cheers!

 

The 03 was 28,850 and you traded it in for 26,300. Hence, the hit you took was, at a minimum, 2,550 (28,850 less 26,300 for trade). This excludes the double taxation you've paid.

 

To clarify the taxes: you also paid the incremental difference in tax (29,150-26,300 for the trade). At 7%, it's approximately $200.

 

um you buy a car you are gonna keep it for a while. Cars are not investments. You lost more buying another new car then would really matter in depreciation

Back in Black

 

The intent of this post was to document the total expense incurred on an real life G sedan trade-in to help gauge the possible effect of depreciation. Because everyone's tax rates differ, the numbers in my first post specifically excIuded taxes for a fair apples-to-apples price comparison between the cars.

Just to be clear, however, there is no "double taxation" in NYS - just too d@mn much tax to begin with. I will pay additional tax on the difference only but, since the total tax in both transactions is the same as if I simply bot the higher priced car to begin with and no more, what's your point? Do you really feel that the additional tax should be considered "depreciation"? I don't.

Regardless, I can't believe anyone is naive enough to believe their car won't go down in value by SOMETHING after 3-4 months and 3k+ of use. Question always is: How much and how do you quantify whether a particular amount of net out-of-pocket expense constitutes "reasonable depreciation" to you?

As a trade-in value target, I simply used what I owed, in essence agreeing that the cost for the use of the old car was equal to the actual principal paid to date. I think that's fairly accurate, as I financed car cost only, not taxes. You may disagree, but I think anything else is probably just picking numbers out of thin air and highly subjective. Following this logic, I would have had needed a private party sale for $28,500 or more to better the trade-in value I rec'd. Not likely considering the original msrp, but that's the effective value of what I got with the trade-in price.

So, no I didn't take a "hit" of $2,550. Even after paying $1,283 for actual usage cost to date, my net out-of-pocket cost to trade was $620 of which $190 I can best attribute to "depreciation" above and beyond actual useage cost. Regarding the common "wisdom" of buy it and hold it forever - with all due respect - B.S. These are the facts, and I'm happy. Peace.

 

Ya know I was thinking the same thing.
I "leased" my G35 on Nov 1, 02.
This morning I woke up and serisouly considered trading it in for a red/blk 6mt coupe with NAV. I'm already over the lease mileage. I am alllowed 12,000 per year and it currently has 17,000. I traded in my 2002 TL-S that I also leased exactly 2 years ago today. I was given 15,000 per year and at trade in time at only after 14months on the lease, I had 25,000 miles!

The TL-S I put out $1,000 drive off and paid $435.00 per month x 48
The G35 I put out an additional $2500 and paying $560.00 per month. Not a bad deal huh?
I have about 2 more months before I can actually consider trading it in. Chase Lease states that I must have the car for at least 12 months before I consider to buy it out, refinance, or trade it in. I'll probably take a loss but I don't care right now. I want the coupe 6mt in red/black. This car, I know i'll keep. Maybe i'm going through too many cars...Someone told me I switch cars like I do with shoes...LOL

I'll let you know what happens!

Bobby / San Francisco, CA 94122

'03 Sedan / Navi / Desert Platinum / Delphi Sat / 35% Tint

101485-gyal8rtintjob.jpeg

 

LOL! hey gyal8r! ive seen you around san francisco before! haha, nice to know you're on this forum!

jtz730

 

gya - holy crap I can't believe you under estimated lease miles by so much, that's gotta cost a fortune. Plus early termination fees, too? Ouch. I hope you're not rolling losses into the new lease/loan. That time bomb will kill ya...

nwG & nismo - please give us an dollar figure of just what total out-of-pocket expense you would consider acceptable to move from a '03 to '04 6MTs. That is the purpose of this post and I'm curious to see what the general consensus is.

Everyone has an opinion - anybody?

 

Dholly looks like you worked an impressive deal to upgrade to an "04". Enjoy the refinements.

Slightly off topic good to see some bay area folks on the board. Near my neighborhood - 94121- 39th Ave. Now hailing from SOFLA. Are there a lot of "G"'s in the City?


"03.5" G35-S Ivory Pearl Sport/Prem/Aerodyn-RS
"02" MBZ C-320 Sport Wagon Brilliant Silv/C-2 pac

 

Thanks Aero, I appreciate your input. Considering all the whining this depreciation subject seems to elicit, I thought having a real-life trade-in history might help debunk some of the conventional wisdom and/or generate a bit more discussion. Oh well, I guess the actual number thing is just too taxing for some.

Hey nwG, I'm not bustin' on you but, if you truely feel that the first car should still be worth exactly what I paid without deduction, it's easy to figure the absolute maximum out-out pocket worse case scenario possible. Simply take the $300 diff between cars (incs doc & temp tag fees+dealer profit for both transactions) +$1,283 principal already paid= $1,583. Oh, and what the hell, throw in the $235 add. tax and you get a grand total of $1,818.

Using your logic, my position after the trade would need to improve by a like amount, i.e., could I sell the '04 outright today for at least $1,818 more than I could the '03? Dunno. I do know the dealer priced my old car at $28,788, and the week before they sold an '03.5, same colors, 18k mi., AT w/ sport pkg and roof only for $27,500. Maybe that info will help you decide.

Frankly, I would be surprised if many folks considered $620 to $1,818 an unreasonable price to pay for a new, improved 6MTs. For the curious, these dollar figures would represent 2.15%-6.30% "depreciation" from the original $28,850 purchase price. Either way, perhaps this offers some insight into how good or bad our G sedan depreciation actually might be. YMMV, but I was pleasantly surprised.

 

Dholly,

Please tell me the LSD only applys to the 6MTs...

John
03.5 G35 14.8 @ 93
02 Maxima SE 14.5 @ 95 (Wife's)
87 Mustang GT 13.2 @ 107

 

Well Bossho, I presume you know you don't have it now but, if you're wondering whether the sedan leather AT gets LSD for '04, I believe you're S.O.L.

Check the changes at http://www.infinitihelp.com/Infiniti/News/2004%20Infiniti%20Line%20Up.htm

 

That's what I figured. I know I don't have it now. Too bad. Too bad they don't offer that for us Sedan Autos.

John
03.5 G35 14.8 @ 93
02 Maxima SE 14.5 @ 95 (Wife's)
87 Mustang GT 13.2 @ 107

 

I'm not worried about being busted on, whatever that may mean.

I am concerned, however, with your blatant misunderstanding of the term depreciation; A decrease or loss in value, as because of age, wear, or market conditions.

You have all these numbers you're throwing around, but yet you're still not considering the most basic and fundamental concept: you paid $28,850 for a car five months ago and it is worth $26,300 today.

No matter what you say, that money was thrown away. Or, at best, it was an expensive rental, as you gained nothing on the money you invested.

You can put as much lipstick on a pig as you like, it’s still a pig.


<P ID="edit"><FONT class="small"><EM>Edited by nwG35Sedan on 09/15/03 09:08 PM.</EM></FONT></P>

 

My wife is starting to panic about how the G will handle the snow and I would love to trade up to the 04 with Limited Slip (better yet the AWD but don't want to give up the 6MT) but my dealer said before we even talked about the cost of the new car, we would lose at least $5000 on the trade in value (plus what we have paid in 5 payments). That's a total of about $7300 for 5 months of driving plus the tax differental.

I could probably retro fit the rear for less??

2003.5 G35 6MT Black/Graphite Prem/Aero/Winter
1987 GN Intercooled SFI Turbo (22K original miles)
1970 GS 455 Stage 1 4-Speed (#'s matching)