# depreciation kill or help us?



## Tomko (Jun 1, 2013)

Generally speaking people attracted to the diesel option are high-milers and will tend to keep their cars until they're all used up. So supply of used models will be low - and hopefully demand high. 

But this will take another year or so to manifest. 

Other than that, depreciation is a fact of life, like death and taxes.


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## pandrad61 (Jul 8, 2015)

very true. since my commute is very short distance and I rarely take trips im hoping to keep miles off mine so that in 3 years at worst case I owe what the car is worth rather then be upside down.


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## warloc (Dec 10, 2013)

It only matters if and when you want to sell. I'm pretty sure I will be selling mine and in 20 months and 57K it is hopefully worth 13K, almost lost 50% of original cost (that's not to good IMO). I have had too many sensor issues at this point for my personal liking and as much as I like this car all DEF systems suck.


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## pandrad61 (Jul 8, 2015)

I agree the def and emissions are stupid. yes diesel might pollute more but we get roughly 2x the mileage. toss in some good cats,the diesel exhaust fluid im fine with but egr and the complexity is just to much. if Toyota brought over the 3.0 turbo diesel hilux I would place cash down


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## money_man (Feb 25, 2014)

IMO a quarter ton has no place in the North American market. There are vans that can carry what a quarter ton can. Ram agrees with me but Colorado/Canyon fans do not. 


Sent from the sexy electrician


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## pandrad61 (Jul 8, 2015)

I absolutely disagree with you money. I have sold enough 1/4 ton to have proof they sell just fine and found a happy home in America. yes a van might have the same payload as a Silverado but the 1/4 ton truck has 4x4 can carry 5 people while caring the payload. for to long the stubborn American mentality of bigger is better has ruled, while the rest of the world uses 1/4 and loves them. 

I don't need a Silverado 1500 to haul my kayak with camping equipment and my friends. just like you don't need Silverado 2500 diesel to get groceries


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## Tomko (Jun 1, 2013)

One way to better understand depreciation of a car is to think of it like a consumable. 

A tube of toothpaste is a consumable. It's worth most when it hasn't been used. But each time you squeeze the tube, you use a little more and the value of that tube of toothpaste goes down. So after a while you have almost no toothpaste left in the tube and consequently it has depreciated to almost nothing. 

A gasoline car has a consumable value of say 150,000 miles. It depreciates over that mileage down to scrap value - say $200. 

But a diesel car has a consumable value of maybe 300,000 miles and so its depreciation is spread out (or amortized) over a much longer period of time. 

Thinking of it this way you can better understand the long-term (or longitudinal) impacts depreciation has for us diesel owners.


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## pandrad61 (Jul 8, 2015)

My thinking exactly. I figured the ls Cruze is like a small bottle of cheap vodka while the Cruze diesel is a bigger bottle of top shelf ( in its segment) and I keep the miles off so im hoping ultimately to be breaking even when trade in time comes. Keep miles off, keep it clean,dont do personalized upgrades, and don't let it rust or paint fade.... DONT SMOKE IN THE CAR


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## Tomko (Jun 1, 2013)

Sounds like you've got a plan!


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## Su8pack1 (Apr 17, 2014)

I wouldn't mind trading for a new diesel in a few years, so hopefully the diesel will hold its own.


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## econrey (Jun 7, 2012)

pandrad61 said:


> very true. since my commute is very short distance and I rarely take trips im hoping to keep miles off mine so that in 3 years at worst case I owe what the car is worth rather then be upside down.



I'm not a negative person, but it sounds like, at least to me, you bought the wrong vehicle. The diesel doesn't get twice the mileage of the gas version, and it's not going to hold it's value in the mainstream market any more so than a standard eco Cruze. if you aren't putting any significant mileage on your cruze, you may run into emissions problems. It's not a stoplight to stoplight car. It's a vehicle that's meant to be driven as Tomko stated, for high milers. We put ~33,000 miles on ours per year. A gas Cruze with 50,000 or less miles can be purchased for well under $15,000.00 whereas a new diesel is going to cost you significantly more than that,~$25,000, and without the mileage, there is no financial benefit.

You are correct in that the way you maintain your vehicle will have an impact on the value when you're ready to sell, the degree to which it matters will be driven by the demand of the vehicle.


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## Jim Frye (Mar 16, 2011)

Just ran KBB estimates on my car and the Cruze I was gonna buy (2LT RS w/Navi and Moonroof). They were very close in features and equipment, so I would consider them comparable vehicles. My car had an MSRP that was $1,300 less ($24,755) than the Cruze. KBB's estimates after 2 1/2 years is $14,152 for the Cruze and $16,439 for the car I purchased, given the same mileage and condition. Means nothing to me as I plan to have the car for at least 10 years (the last one went 16 years). If resale value means much to anyone, I'd say that should have been one of the decision criteria prior to signing the paperwork. Since the Cruze was a new product though, it would have been difficult to estimate. Not sure one could base it on the predecessor Chevy model. I didn't check, but I'd bet the Cruze is holding its value a lot better than any Cobalt, Cavalier, or etc. ever did.


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## diesel (Jun 8, 2013)

I think the value of the diesel will be significantly higher than gas Cruzes a few years down the row. Short term depreciation is on par with most American cars - pretty steep. My CTD is worth about $6800 on a trade now with 131K miles, but it has been more or less at that level since 100K so I have hit the bulk of the depreciation. I predict mine will hold its value pretty steady even as I pile on the miles.


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## pandrad61 (Jul 8, 2015)

I bought mine for the fact that it was diesel, has lots of room, is easy to drive and im not a vw fan. I like the car a lot but Im also trying to make plans for the future. in all honesty Ill probably keep the car. I don't do over 10k a year, but If i ever do want or need to trade I would not want to be up side down. also look at the dodge Daytons Shelby , its worth significantly ore then the normal Daytona. I know its not a exact apple to apple comparison but rare motor options do hold value better

when I say 2x vs its gas brother its a exaggeration but diesel is the more efficient motor and for the extra range per gallon the slight pollution is worth it. that was the point i was getting at. also I daily city drive and have not had a single emissions issue at all.


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