Hi guys, I financed a 2019 RC-F in April. The value has been dropping steadily since, and I am now being offered about 12% less than what I paid (I paid 63K). My concern is that this is just the beginning and that the value will drop much more in the coming months. Is there a ‘safer’ car I should trade the RC-F for? I was considering an LX570 but perhaps it would not hold value any better. Are there cars that are more depreciation proof out there? A used 911? Jeep? I drive very little, around 3K per year. I realize this purchase was a financial mistake, but am not sure if there is a way to ‘fix’ this situation at this juncture. Please advise. Thank you.
Yeah sell now while there is still a bubble.
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What do you want to drive?
That’s where I usually start.
I can’t say that many of my cars were strong financial decisions, when viewed objectively (even if I didn’t also put on a lot fewer miles than average)
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Replacing it with something else will hit you with sales tax right away which will probably eat away “lower” depreciation of the new car ( you don’t know that for sure of course). If depreciation is your only concern, I would keep it as there is not a better alternative .
Cars were, until very recently, depreciating assets…
I just looked up the MSRP of the RCF. And you paid close to this on a 2019 model?? I’ve always wondered who these people are.
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I mean technically, almost all cars are “financial mistakes” in some sense of the term in normal times as it is a constantly depreciating asset, and for many people they are the largest or second largest purchase they make. I
At some point, used vehicles curves should return back to normal, and the value of your car will likely go down close to what it traditionally would have been be at the 5 year mark. Look at that number and if you can afford that and you like the car keep it!
If you cannot afford that number, or aren’t comfortable with it, then sell it and get something that better fits in your budget/tastes. I mean 911s and Jeeps retain their value pretty well, but like others said you may get hit on sales taxes and transaction fees, and the numbers may not make sense. However as the alternatives you are looking at are still expensive, it doesn’t sound like the loss of money is something that you’re really concerned will hurt you severely as you’re not looking to trade into a 2009 Camry.
Maybe but neither guaranteed nor there is a timeline. Many people predicted “back to normal” sometime last year but it didn’t happen. Recession will probably calm things down but I do not expect good old days of %15-20 off MSRP anytime soon.
Possibly but things could change quickly. We are not in a new paradigm even though prices have remained elevated for a while.
OP should understand that his car is a money pit like 99% of cars. Resale is an important factor but it’s all a spectrum; we should always assume all of our cars will depreciate.
If his car had not dropped in value would he still be happy with it? If so, enjoy it and forget the trade.
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I’m guessing the value hasn’t dropped that much, you just paid retail and now you’re being offered trade in value.
So if you sold it today to a dealer for ~$55k they’d have it right back on the lot tomorrow for close to the $63k you paid.
As everyone has mentioned cars are depreciating assets, the current market is a complete anomaly. If you truly want something that will not depreciate (much) then go find the nicest few year old Honda or Toyota you can get your hands on for $10k or less.
Otherwise just enjoy the RC and don’t worry about depreciation.
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Any reason you are looking to get out of it? What drew you to this car in the first place? Just curious.
Yes
Yes, but what model and year are you looking at?
@orys - How long do you plan to keep the next car you get? Do you plan to finance or lease it?
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I think you should drive it an enjoy it. I really miss my RC-F. I’ve had faster cars and cars with more tech since then, but there was something about a rare car (never saw another one here) that had a NA V8 that was just a fun combo. It’s a great GT car. It’s not a sports car.
Granted I got a great deal at the time.
Lexus RX is probably your best bet. ES next.
Only get a 911 if you really want a 911 because it has a lot of shortcomings. Same for Jeep.
MSRP was 84K on mine
You’re likely going to pay a high premium for a used 911 and it’s not guaranteed you’ll have low depreciation from that starting point. As others mentioned you’re at least likely to lose your tax & assorted other costs.
Safer bet is to keep going with the RC-F unless you really hate it.
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Lexus GX 460 is a great holder of value and in high demand.
If you want a used sports car that will hold value get a BMW M2 Competition.
I would consider a Ferrari 458 or Porsche GT3RS or GT3. Those car are generally depreciation proof after a few year. But the market is currently a little inflated since 2019.
BMW 1M?
2008 ISF?
GET RID OF IT NOW!
The RC-F depreciated like crazy before the insanity started. I remember new ones being blown out for $15-20k I believe off MSRP. While there are lots of good things about the RC-F (reliability), it got a lukewarm reception for being crappier than all of it’s peers. When the market cools, i’d expect resale to be poor on the RC-F and GS-F again.
They didn’t really make them in limited numbers and they were quite plentiful when released. I’d get rid of it now. You can always buy another one when the prices drop.
You can decide on a replacement later.
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I know that they were heavily discounted. The ISF was too. I bought one new at 59K new and sold it years later for not much less (40s). The RCF was made in very small numbers in 2018 and beyond. The GSF is not made anymore. The RCF has its followers although it is not a perfect car (I think the bad press started with Demuro’s idiotic comments about it, which were not factual but I digress). I had a 2007GT3 and it was a stupid and pretty unusable car on most US roads so I sold it (and am I sorry I did - it nearly doubled since). It was a car that was regularly idolized by car journalists and I drank the cool aid. I would consider a more ‘mundane’ 911 like a 997 turbo S or a lowly 991, but again, not exactly practical cars. The GX460 is not a bad option but it’s so, so lame. I love the LX570 - does anyone have a gut instinct if these will retain better value down the road? It seems that EV SUVs now available but not at that size yet (I think), so the LX might also become extinct.
You’re kind of in my boat (as of 5 months ago). Looking for a fun luxurious ride that retains their value. I ended buying a 2022 macan S off the lot for msrp hoping that my effective ownership costs will be lower than that of similar vehicles - bmw Xm3, mdx type S, in a couple of years etc.
The LX570 has and will continue to retain its value very well (2013-15 is the sweet spot IMO unless you must have the huge grill and 8 speed trans). The problem is you’d be buying one at the very tippy top of the market right now.
What does ‘hold its value well’ mean to you? Right now any Porsche GT car is more expensive used a few years down the road than it was when it was new if bought at MSRP (so is a Urus or a Cullinan but I digress).