Worth trading a 2011 for a 2014 at MSRP?

75K? No way.

You can upgrade the car to 12 spec's for about 7500. Then, extend the warranty and put the rest in the bank.

Unless the car is giving you problems, I wouldn't.

 

You are right. Usually the depreciation curve is steepest in the early years then flattens out as a car ages. Given that, you will lose a lot less to depreciation on the 2010 than the 2014.

 

$7500 difference meaning selling the 2011 privately then buy a 2012? I doubt that trading in a 2011 and adding $7500 will get you a similar 2912? If it is, I'd totally consider it.

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Unless I don't understand what is going on here....


The OP has to pay $75,000 to give back his 11 to get a 2014 at MSRP and reset the warranty. He says the cars are about equal in equipment and looks.

For $7500, he can upgrade the car to 2012 specs

For 6,000 a year, he can extend the warranty.

For $1100 a year, he can pay for his own annual service instead of getting it "free". But, I think even the "free" maintenance program works for earlier cars if you pay them like 5 grand.

He's already eaten up much of the depreciation. Starting with a 2014 will put him right back on the top of the depreciation curve with a new car coming in 2 years.


I don't see how anyone can say losing 40 grand or more just to have a 2014 is worth it. If the difference were like 30, then I would say it was worth it.

 

I agree with this logic. If money is the concern, this is the best advice.

 

I see what you mean, and it makes sense. $75k is not worth the upgrade.

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It's not just money. The difference between a 12 and a 14 is probably streaming audio. So, if you want the 14 specs, just upgrade for $7500 to 12.

 

I think if you can get them to about 30 or maybe 35 grand in difference, then it would make sense.

That is what I would try before making a decision. You never know what they may say. Just use the math I gave you and have them try to convince you otherwise.

 

If the object is to "save" money on depreciation...do't forget the sales taxes and fees on a new car. Buying a new car is expensive. so if the main reason is to "save" money I am very skeptical.

If you were getting a different color with some different options I could understand your lust.

Best

 

Put simply, if you trade for the '14, you will have paid twice for the sharp initial depreciation and dealer mark up vs. just once. Mayor is right; If you want to upgrade to '14 specs buy the software and wait for the 458 replacement. Also be aware that your '14 may not sound as good as your '11.

 

I would say no way not worth it. The 11 and 14 are the same except for minor things. Save the 75 grand.

 

If the whole object is to get the new model early... then you may well have to blow some money on a new car of some kind before the new model comes out to get on the short list anyway.

So it seems like the pertinent question is - will the '14 458 do it, or are they going to ask for something else ? - and how much are you willing to spend to be early ?

Are you looking to be a long term holder or are you trying to get on the treadmill where you get cars early and flip them back for the next new one sight-unseen ?

 

Are you kidding me? Terrible idea. 458 prices are going down.

 

They are not going down as bad as you think. I would say that youll probably lose that 75k by the time the new model comes out in about two years.

 

I think the only upside, the 2014 will be more marketable than a 2011 when ready to purchase a 458 replacement. But from a financial viewpoint, it is impossible to justify. I would just enjoy your 2011, as is, until ready to upgrade for the next model change. Who knows, you may not even like the model change in 2016(?). But, continue to develop a rapport with your dealer now for your future plans.

I also think if you paid the 7,500 to get latest software, you not get that back either when ready to sell the 2011.

 

There's a good reason the dealer wants you to do it.....I would say to absolutely keep your '11.....

 

Buying a 2014 at MSRP starts you at the top of the depreciation curve. He'll lose way more on a 2014 in 2 years than he would on the 2011. Way more.

The 458 will be out of production in 2 years most likely and the 2014 will just be a late MY last-gen car. Depreciation.

 

I understand what he will lose but in 2 years you are not going to see a 300k 2014 be below 200k. He wants a warranty and they dealer is offering 75k difference. His 2011 in 2 years will probably be around 175k in my opinion. Thats another 50k. The difference in total lost will probably be the same but he will have a warranty and newer car for a few more years.

 

I agree with Bob. Unless you want a new 458, stick with you 11 and get the replacement in late 15/early 16. Get the extended warranty for your 11.

 

Today as I post this, there are 98, 458's just on Ebay alone, the number of used 458 market grows larger every month. Regarding the $75,000 trade in, don't know what state the op is from, but add on perhaps 7-8 percent sales tax, and the number is quickly above 80 grand, assuming he is in a state with sales tax.