Anyone Else See This?

[boogielander]

Sure, but I'm really talking about deprecation, which requires a starting point to determine. From what my insurance company told me, it's based on MSRP, which you then subtract current market value (which is a moving target), and you get the deprecation since new to current.

If your MSRP goes higher, then the residual value will go higher assuming all other variables are equal, such as condition, mileage, etc.

When I bought my Rebel in 2019, it had an MSRP of 55K, I paid $39K (with 25% discount). My insurance told me not to buy GAP insurance since my truck was worth more than what I paid for it. That if it was totaled tomorrow, I would get money back. That's because the residual is taking into account the originally MSRP, not what I paid for it. This was before the Covid market changed everything and raised market values, at least for the next few years, but now the market is clearly back closer to normal.

makes sense.
i thought when you get paid out you just get paid out for what the market value is and depreciation doesn't really go into effect on that.
maybe all the cars I had before were all cars that hold their values and i get most of the money I put in back so I never considered depreciation (and I don't lease so.. that was never an issue for me):
mk6 GTI - paid $28k for it in 2013, total loss in 2017 with about 60k on the clock got $24k back.
gen 5 T4R - paid $36k for it in 2017, sold it for $39k with about 80k miles on the clock.
E30 318is - paid $4.5k for it in 2017, sold it for $10k in 2021.

 

[boogielander]

Gotcha, makes sense to me now. However, lowering of the price is common, especially with Tesla who will drop a price by $5K on a whim mid-year. There is no loyalty or checks given back there, I would just be happy you got a check from Mazda, I highly doubt anyone else would do that, maybe Toyota?

nah toyota won't even do that. they know they can sell their cars no matter what. they riding that "toyota = reliability" wave till the end of time.
tesla can do that because they know people will still buy it no matter what. it's still the gold standard for electric cars and a fashion statement.

 

[SD Rebel]

makes sense.
i thought when you get paid out you just get paid out for what the market value is and depreciation doesn't really go into effect on that.
maybe all the cars I had before were all cars that hold their values and i get most of the money I put in back so I never considered depreciation (and I don't lease so.. that was never an issue for me):
mk6 GTI - paid $28k for it in 2013, total loss in 2017 with about 60k on the clock got $24k back.
gen 5 T4R - paid $36k for it in 2017, sold it for $39k with about 80k miles on the clock.
E30 318is - paid $4.5k for it in 2017, sold it for $10k in 2021.

Well you're not wrong, I think we are talking about slightly different things, I was talking about the depreciation curve since new on late model vehicles in regards to insurance payouts, but you are right that market value can go above and beyond the original MSRP in special circumstances such as during Covid with even relatively new vehicles.

When you get to popular hard to get, classics, and older vehicles MSRP goes out the window and it's based purely on current market values. Great taste by the way, I have an E46 & E90 currently.

 

[boogielander]

but to OP:
i'm still confused on why seeing that on a Mazda has anything to do with the Ram truck or the "bad" experience you had at the dealer for the Ram.

 

[boogielander]

Well your not wrong, I think we are talking about slightly different things, I was talking about the depreciation curve since new on late model vehicles in regards to insurance payouts, but you are right that market value can go above and beyond the original MSRP in special circumstances such as during Covid with even relatively new vehicles.

When you get to classics, and older vehicles MSRP goes out the window and it's based purely on current market values. Great taste by the way, I have an E46 & E90 currently.

oh i see. never thought about depreciation play into insurance payouts. i always assumed it's based on market price and i let my lawyer handle all insurance related stuff so I never looked into it. (i'm the one that always get hit and not total vehicles on my own, so I lawyer up to get myself protected) when it comes to payouts I know the market price of the cars i have and if it's anything close to that i'm ok with it. that's why i thought it was determined based on market price and depreciation got nothing to do with it lol

i got a 09 e90 M currently and my friend already wants to buy it from me lol
paid $35k for it in 21 with 62k on the clock. RB and TA done, Ohlins, M359 staggered wheels, M performance exhaust, DCT, double hump, comm box installed. i didn't have to do anything. now at around 72k i think i can still get $35k for it lol

 

[SD Rebel]

oh i see. never thought about depreciation play into insurance payouts. i always assumed it's based on market price and i let my lawyer handle all insurance related stuff so I never looked into it. (i'm the one that always get hit and not total vehicles on my own, so I lawyer up to get myself protected) when it comes to payouts I know the market price of the cars i have and if it's anything close to that i'm ok with it. that's why i thought it was determined based on market price and depreciation got nothing to do with it lol

i got a 09 e90 M currently and my friend already wants to buy it from me lol
paid $35k for it in 21 with 62k on the clock. RB and TA done, Ohlins, M359 staggered wheels, M performance exhaust, DCT, double hump, comm box installed. i didn't have to do anything. now at around 72k i think i can still get $35k for it lol

For insurance payouts, they go by market value, which is determined usually by researching current vehicle sales prices on the used market, some value books, wholesale auction prices, etc. Each company has a formula for it. Those prices are based on demand, current condition, mileage, age, equipment, etc., which effects the deprecation from original value (MSRP).

However, as mentioned, those values can go above MSRP in certain conditions.

I sold my E90 M3 last year, kind of regret it now, have a E90 328I sedan manual in it's place, good but not M3 good. I think you can definitely get that price.

 

[boogielander]

For insurance payouts, they go by market value, which is determined usually by researching current vehicle sales prices on the used market, some value books, wholesale auction prices, etc. Each company has a formula for it. Those prices are based on demand, current condition, mileage, age, equipment, etc., which effects the deprecation from original value (MSRP).

However, as mentioned, those values can go above MSRP in certain conditions.

I sold my E90 M3 last year, kind of regret it now, have a E90 328I sedan manual in it's place, good but not M3 good. I think you can definitely get that price.

get back to the M!
hahaha i've seen a few popping up in the socal area

 

[bigdodge]

Did you go on line and print the window sticker from there?