# Depreciation Of The Cruze Is Depressing



## brianguy1979 (Jun 17, 2012)

Sadly enough my info comes from the Chevy dealer I work at during their IT work. I have been drooling over the idea of getting into a diesel when they come out since I drive A LOT. I have a part time courier gig that has me driving about 4K a month. 11 months and 54K later, my used car manager bid by (flawless condition with every GM accessory I could buy for it, HID headlights and fogs lights, 15% tint all around and heated front seats) 2012 ECO Manual at a ridiculously low 8K and told me he was being generous. How sad....A car that had a 21K sticker 11 months ago is worth less than half already. He told me I should have bought a Honda, or a Subaru or something in the foreign nature because "those things really hold their value"! He must be right because at this rate my car will be worth $1500 in two more years! I sold my 02 Jetta TDI manual at the local Manheim auction here in Omaha NE and it brought $3200 and that was with 514K on the odometer!! AT AN AUCTION!! I'm really bummed out! I was loving the idea of having a diesel again. Unfortunately even though I have been paying a extra $100 towards my principal every month I am no where near down to a 8K payoff! UGH! :angry:


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## jblackburn (Apr 14, 2012)

$8000?! I've seen 10-year-old cars sell for that much! I really hope the resale prices on the Cruze stabilize a few years down the road.

Just for giggles, I had mine evaluated by a dealer when I went to look at the diesel and had mentioned possibly wanting a '13 or '14 (I really don't have any intentions of selling mine...I was just curious). A dealer offered me $14000 trade-in for my 1-year old 2012 1LT w/ 14,000 miles. I think I still owe more than that on it.


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## brianguy1979 (Jun 17, 2012)

jblackburn said:


> $8000?! I've seen 10-year-old cars sell for that much! I really hope the resale prices on the Cruze stabilize a few years down the road.



He said the fact that everyone and their mom has a Cruze including all of the rental fleets have flooded the market with them to the point there is no value in them. Add the fact that it is a year old and out of factory warranty from my insane amount of miles driven has brought it to where it is now. He said it would be on the lot for $9450 with those miles on it. CRAZY!!


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## Aussie (Sep 16, 2012)

Before getting too depressed, when I bought my diesel the dealer wouldn't even tell me a trade in price on my 12 year old Commodore with 250k on the clock and I sold it privately for $5,000. See what they are going for in used car lots first then see if a private sale is on?


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## obermd (Mar 3, 2012)

It's the mileage on your Cruze. Anything over 12,000 miles per year is considered "excessive" from a dealer trade value standpoint.


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## brianguy1979 (Jun 17, 2012)

obermd said:


> it's the mileage on your cruze. Anything over 12,000 miles per year is considered "excessive" from a dealer trade value standpoint.


 very true!


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## Robby (Mar 1, 2013)

I imagine if you had that kind of mileage on the same age Honda you'd be disappointed with the value as well.
Generally American car transaction price is well below window sticker......Japanese and German car transaction price is usually much closer to retail.
Expressed as a percentage of loss, from the transaction price, the percentage is generally about the same.

Rob


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## shawn672 (Oct 31, 2010)

I understand where you're coming from but an import really isn't much better from what I've seen - it may be different in your area.
You have to understand you lose about 40% in value the first year, 20% the 2nd, and then it finally levels off to a normal 5% or so (disclaimer: just tossed those numbers off the top of my head, they are not exact but you'll get the idea).

This combined with how interest works (assuming you don't have a 0% interest loan). You're going to be paying more interest at first and less principle. I believe you generally need to keep a NEW car for 2-3 years before you can trade-in with positive equity (disclaimer: assuming your loan rate and length, mileage, etc.)


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## NYCruze2012 (Jan 16, 2012)

This is a conversation that this forum has had more than once. It really is quite depressing how the value drops upon leaving the dealership. December 23rd of 2011 I bought my 2012 Cruze Eco 6mt. One year later almost to the day I had 36,000 miles on my car. Right before the Lordstown trip in late May and at 41000 miles I decided to replace all of my tires. Now it is the end of May and I now have 48000 miles on my car. I am NOT expecting really great value for trade in. Rather I will drive this car into the ground and then replace it with a new one when the time is right. In my opinion as nice as the diesel Cruze is what is the point of buying it when my Cruze Eco gets about the same mileage if not better. In this situation is a waste of finances at least for me.



Sent from AutoGuide.com App


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## danimal (Oct 4, 2011)

FWIW...When I traded in my '11 ECO 6MT with 30k; I got 14.5K for it...Bought it new for 18 and change...I was pleasantly surprised.


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## Rocky87 (Apr 28, 2013)

brianguy1979 said:


> He said the fact that everyone and their mom has a Cruze including all of the rental fleets have flooded the market with them to the point there is no value in them. Add the fact that it is a year old and out of factory warranty from my insane amount of miles driven has brought it to where it is now. He said it would be on the lot for $9450 with those miles on it. CRAZY!!


i work on a chevy dealership in pa and we just sold a 2011 ls with 64,000 for 14k. That price seems like a low ball


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## Chris2298 (Aug 1, 2012)

I searched Craiglist for used Cruzen and the resale doesn't seem to be too bad.. Trade in value may be crap, but they don't seem to have a problem reselling them at near full retail...


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## Beachernaut (Mar 27, 2012)

IMO you should get a second opinion if you're serious about getting out of your car. However, with the amount of miles you put on a car, unless you have 50% down, I think you're gonna be upside down regardless.

Otherwise, the Cruze seems to be keeping it's value better than I expected. My clean trade in value is a bit more than I owe.


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## spacedout (Dec 7, 2010)

Every car drops the most value in the first few years. Typical GM compact car sells used for $7,500-8,500 after 4 years. After 8 years they still sell for around $3,000-4,000 used. (with around 12,500 miles a year)

However every dealer assumes you have no clue what they are going to sell your car for and offer half what the going used rate is, at least that's been my experience with GM dealers. 

With the miles on your cruze getting $10,000 from a dealer would be pushing it, probably would only sell for $12,000 used. you can get a 2012 2LT or LTZ with less than 30,000 miles for around $17,500-19,000. I would not take any less than top blue book in any case.


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## ErikBEggs (Aug 20, 2011)

Your dealer guy is a f*cking idiot.

My dealer just offered me $15,500 on my 2011 LTZ that I bought for $24,000. I have 45,000 miles in less than 2 years. 

Still, you go into buying a new car with the intention of paying it off completely because you are accepting the depreciation hit. If you care a lot about depreciation, you either lease or buy used.

I could care less if my car was worth $8,000 right now, it is worth more than that to me because I drive it every day and will continue to do so until it falls apart


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## ericpj (Oct 8, 2012)

2012 LT Turbo+
paid 19k (everything costs more in Canada) worth 15k according to CanadianBlackbook.com 

I agree with the other Erik; Find a better dealer.


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## sciphi (Aug 26, 2011)

It depends on the market, and the car. I bet he was also giving you the trade-in for a LS manual, not a pretty rare Eco MT. Mine's still worth about $14k, bought it for $20k out the door 2 years ago. It's finally paid off, so it's being driven into the ground.


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## jsusanka (Jan 31, 2011)

the mileage is killing your value

54000 in 11 months is a ton of mileage. 

I check my value on edmonds from time to time and I don't think they are depreciating too bad and nothing especailly low


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## Suns_PSD (Feb 16, 2013)

Right now a guy can stroll in to a Chevy dealer and purchase the same car, but a model year newer, w/ all of it's warranty in tact, brand new tires, new fluids, new brakes, not a scratch, and the best interest rates for probably $18K (before taxes because everyone has to pay taxes on a used purchase as well).

So how much does a one year older version, w/ 56K miles of wear and tear, what would you walk in and buy a stranger's car for? $12k, 13k, 14k? I'd personally probably pay about $12.5K at the most.

So how much profit do you think it takes for a dealer to be profitable? They have to pay for a multimillione dollar facility, salespeople's commisions, the deals that go bad or the cars that break, utilities, house cleaning, and at the end of the day make enough money to ride out the low spots in car sales.

Since I know first hand what Carmax paid for a used Murano I was trying to buy and how much they were asking for it on the lot. Asking price on Craiglist was $15K, it was on CarMax's lot for $24.5K the next week.

So for a car like yours that the dealer can probably only sell for a max of $13K, where should they be.

Do I think $8K is too low? Yes, slightly. Do I think it's absurd? Not in the least.

Look, buying new cars is a RIP OFF. If you trade in you will lose 40%-50% of your value in 2 years w/ normal mileage. If it's not something you can accept buy older cars as you will lose very little on the price.


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## spacedout (Dec 7, 2010)

sciphi said:


> Mine's still worth about $14k, bought it for $20k out the door 2 years ago. It's finally paid off, so it's being driven into the ground.


With the high miles your car already has its not worth that much.... best you and the rest of u can hope for is $6 a gallon gas increasing the value. 

2012 eco with 40,000+ miles is about $12,500 trade in, slightly less than $14,000 private sale.


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## brianguy1979 (Jun 17, 2012)

What's sad is we just took in on trade a 12 Impreza that was a manual one with 62K on it. They gave the guy 12.5K for it. WTH?!?!?!?? 8K for mine more loaded than the Subaru and 12.5K for the plain jane Subaru? Robbery! :angry:


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## 2013Cruze (Aug 4, 2012)

brianguy1979 said:


> What's sad is we just took in on trade a 12 Impreza that was a manual one with 62K on it. They gave the guy 12.5K for it. WTH?!?!?!?? 8K for mine more loaded than the Subaru and 12.5K for the plain jane Subaru? Robbery! :angry:


I'LL reply with one word.

WOW...


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## 2013Cruze (Aug 4, 2012)

I seen a 2013 Loaded Buick Verano turbo sitting on a dealer lot with 355 miles on her.

MSRP was 32,790 asking 27,500 for it.

Black Granite Metaliic in color.

Very tempted to get it.


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## sciphi (Aug 26, 2011)

High resale is nice when an accident occurs since it takes more to total out the car, and increases the likelihood of it getting repaired instead of totaled.


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## UlyssesSG (Apr 5, 2011)

*Car Economics 101*



brianguy1979 said:


> :angry: What's sad is we just took in on trade a 12 Impreza that was a manual one with 62K on it. They gave the guy 12.5K for it. WTH?!?!?!?? 8K for mine more loaded than the Subaru and 12.5K for the plain jane Subaru? Robbery!


It's a bitter pill to swallow, I agree, but facts are facts and every Subaru model sold in North America ranks among the best in the business as regards retained value ... and it's been this way year-in and year-out for over a decade. Period.

_Point-in-fact:_ my 2005 Subaru Forester X's current value with 59K under its' belt is just about on par with my 2012 Cruze with only 3,500 miles on the clock .. and in another year the Subie will move ahead of the Cruze. _Another example:_ a good condition 2003 Subaru Impreza Outback Sport (a 10 year old car, mind you) which stickered new for between $19K and $20K way back when will change hands today for roughly $10K.

If you want a Cruze then by all means get a Cruze _(I did)_, but if you want stellar residuals ... buy a Subaru.


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## brianguy1979 (Jun 17, 2012)

UlyssesSG said:


> If you want a Cruze then by all means get a Cruze _(I did)_, but if you want stellar residuals ... buy a Subaru.



Very well said indeed!! :eusa_clap:


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## NickD (Dec 10, 2011)

Ha, try laying out $400K for a brand new motorhome and keep it for a year. Be darn lucky to get even $60K for it. Boats fall in the same class. Even an $85K very well taken care of Land Cruiser loses half of its value over three short years.

All I can lose on my Cruze today, even if I gave it away is around $15K, $16.1K if I include state robbery tax. After dealer and GM card earnings discounts, that is all I paid for it. With 16K miles on it, that is a buck a mile that is near standard depreciation for these far overpriced vehicles like driving a new Cadillac for example.

If there should be any complaints, should be against the IRS, can't even deduct the cost of driving to work or to school with those darn guys. And without that, can't even learn a living. Would think every vehicle owner should object to this, so why are we being so quiet on this subject? And in like terms depreciation should be deducted.


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## JayZee (Jan 17, 2013)

In December of 2012, I was looking to buy a Cruze. I could have purchased a 2011 Cruze LT (not RS) with 30,000 miles for $16,000. Mind you, this car is considered 2 years old now that the 2013's were out.

A brand new 2013 LT RS was under $19000 out the door with 6 miles on it (3 of which were miles I put on it test driving).

Guess which one I bought? Yup, the new one.

The 2011 is now considered 3 years old now that the 2014's are out...


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## modalita (May 25, 2013)

Let me jump in here as I've got a recent experience trading my 2012 Buick Verano for a new Cruze Eco last week. Pretty much every dealer hit me with an original pencil that is consistent with the OP....for a $26K car they were quoting me $17K. They also went to say that they don't go by blue book, and indicated that the market was different because it was being driven by the wholesalers. That said- with some persistence I was finally able to squeeze out $20K from the trade in(which was consistent with clean blue book values). The fact of the matter is- every dollar they quote below blue book is padding their profit.


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## brianguy1979 (Jun 17, 2012)

modalita said:


> Let me jump in here as I've got a recent experience trading my 2012 Buick Verano for a new Cruze Eco last week. Pretty much every dealer hit me with an original pencil that is consistent with the OP....for a $26K car they were quoting me $17K. They also went to say that they don't go by blue book, and indicated that the market was different because it was being driven by the wholesalers. That said- with some persistence I was finally able to squeeze out $20K from the trade in(which was consistent with clean blue book values). The fact of the matter is- every dollar they quote below blue book is padding their profit.




WOW! You did good! I suppose I could be persistent with my managers and squeeze a little more out of them, however, even if I could squeeze a grand or two out of them, I'd still be 5K upside down and that would kill it for me. That diesel sounds so appealing to me especially for the potential to get even better mileage, but in the end I'd take such a hit on the negative equity I wouldn't be coming out ahead! lol, I think I will just drive my ECO to the ground and get over it!


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## ErikBEggs (Aug 20, 2011)

Basically, if you buy a new car.. the only way to do well is to buy an exclusive special model (like a Regal GS) and lock it in your garage for 30 years and never drive it.

HOWEVER, they say the more miles you drive annually, the better off you are with a new car. If you are driving less than 25,000 miles a year you _should_ be looking at a used car. The less you drive, the older and cheaper your theoretical car purchase should be. Again, I'm quoting financial logic.. not emotions


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## IROCZILLA (Jun 29, 2012)

I work at a Manheim usually people get way more than they deserve for their cars. My friend recently traded in his 2011 RS with about 24k and got 10k for it. He bought a Challenger R/T Blacktop but I was shocked at the deprecation as well :/


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## Jim Frye (Mar 16, 2011)

Over the years, I found a way that eliminates, or eases, the depreciation depression. I buy a car that will (hopefully) last me for 10 years or more. That way, depreciation has no value. Sorry for the pun. After a decade, the mileage will be well over 100K, which seems to be some sort of valuation threshold for trade in pricing. When I buy a new car, I do so with the expectation that I will get a minimal amount on trade in. 

If you are going to be buying a new car every 3 - 5 years, then you will have to make projected depreciation research a mandatory part of the buying process. One way to gauge depreciation is to look at the residual value the dealers put in leases. This web site can help you with a lot of that research. 

Car Buying Guide for New and Used Vehicles | CarBuyingTips.com


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## obermd (Mar 3, 2012)

Jim Frye said:


> Over the years, I found a way that eliminates, or eases, the depreciation depression. I buy a car that will (hopefully) last me for 10 years or more. That way, depreciation has no value. Sorry for the pun. After a decade, the mileage will be well over 100K, which seems to be some sort of valuation threshold for trade in pricing. When I buy a new car, I do so with the expectation that I will get a minimal amount on trade in.
> 
> If you are going to be buying a new car every 3 - 5 years, then you will have to make projected depreciation research a mandatory part of the buying process. One way to gauge depreciation is to look at the residual value the dealers put in leases. This web site can help you with a lot of that research.
> 
> Car Buying Guide for New and Used Vehicles | CarBuyingTips.com


I'm the same way - I got $500 for both my vans and my wife's Intrepid. All three were over 10 years old. If you're worried about depreciation, I would recommend leasing and watching your mileage to avoid over-mile charges.


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## Sunline Fan (Jul 29, 2012)

ErikBEggs said:


> (like a Regal GS)


Oooh, those rims!!!

Sorry, continue on... :th_coolio:


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