Originally Posted By: CKN
Good post. Puts the "resale" myth to rest. BTW-your right...Subaru is selling all the vehicles they make these days-not much reason for the dealers to do you any favors.
Thanks! Sometime I get something right... just like a broken clock.
Resale for the general consumer is more of a customer satisfaction thing. It is there to give you the warm-fuzzies most of the time (but it can be real in some situations... like with big SUVs and a fuel spike)
However, in the fleet world, "resale" is not a myth.... but it is different. Then again, I am not targeting vehicles with the "best" resale, just those with good, low purchase price and consistent resale. When you are doing 25 vehicles etc, that $500-$1000 per vehicle can be significant. Knowing when to buy and unload vehicles is a part of the business plan. For example, I could buy and sell a general sedan every 3-5 years at about 80K and make the most back compared to my cost per mile. It depends on how "hot" the used market happens to be. Compare that to a minivan that I have to keep 12 years and 120K miles (or more) to make up the cost (higher buy-in cost and I tend to get less miles on those vehicles). However, this is not a consumer world. An "new" leftover 2013 (older model) Impala in government spec back in the day would cost me 2/3 or less of the MSRP. I could have gotten a mid-trim Fusion for about $18K ... or something ridiculously cheap. So then I would want to find where the recoup at 50% target would be so I could roll value forward during the next replacement. I am basically helping stock your local Carmax with bland-mobiles.
Good post. Puts the "resale" myth to rest. BTW-your right...Subaru is selling all the vehicles they make these days-not much reason for the dealers to do you any favors.
Thanks! Sometime I get something right... just like a broken clock.
Resale for the general consumer is more of a customer satisfaction thing. It is there to give you the warm-fuzzies most of the time (but it can be real in some situations... like with big SUVs and a fuel spike)
However, in the fleet world, "resale" is not a myth.... but it is different. Then again, I am not targeting vehicles with the "best" resale, just those with good, low purchase price and consistent resale. When you are doing 25 vehicles etc, that $500-$1000 per vehicle can be significant. Knowing when to buy and unload vehicles is a part of the business plan. For example, I could buy and sell a general sedan every 3-5 years at about 80K and make the most back compared to my cost per mile. It depends on how "hot" the used market happens to be. Compare that to a minivan that I have to keep 12 years and 120K miles (or more) to make up the cost (higher buy-in cost and I tend to get less miles on those vehicles). However, this is not a consumer world. An "new" leftover 2013 (older model) Impala in government spec back in the day would cost me 2/3 or less of the MSRP. I could have gotten a mid-trim Fusion for about $18K ... or something ridiculously cheap. So then I would want to find where the recoup at 50% target would be so I could roll value forward during the next replacement. I am basically helping stock your local Carmax with bland-mobiles.
