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Discussion Starter #1
Hi guys,

I'm curious about the resale / residual value of the current-gen Mazda 6. I've found that it devalues a lot, very quickly -- I've found some Touring manual versions on cars.com as low as $10.5K asking price. Granted, that particular unit had relatively high mileage, but even the next-cheapest unit was $11.5K asking price, and that one had only 48K miles and was a 2015 model.

By comparison, similarly-optioned Accords are $3-4K more for roughly the same year/mileage/original MSRP.

So, what gives? I know comparing different car brands in terms of resale is an apples-to-oranges kind of thing, but are there some concrete reasons why Mazda 6es are priced so low? Are the Skyactiv engines problematic, or they fail at 80K miles, or something of that sort?

I'd think that $11.5K for a two-year-old unit would be a steal, and I'm curious what the "catch" is. So far I couldn't find one.

Thanks a bunch!
 

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Mazdas have never been strong for resale value, I think it might be due to its past ford ownership when they had reliably issues in the 90s. where Hondas are probably the strongest in terms of resale value, due to proven reliability and aftermarket. I might be wrong, correct me on this if I am haha.
 

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Someone here recently reported how they bought a 2016 GrandTouring with less than 12k miles for ~23 OTD. That's almost 30% below what the car was selling for when brand new. No new car (with few exceptions) is a sound financial decision since they all depreciate in value, but yeah, it is a tad scary how bad the depreciation is on Mazdas. Another contributing factor could be the switch to SUVs, cars are just not in fashion so they dont hold the value too well.
 

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So as far as you guys know, there isn't some glaring contributing factor to this (like exploding engines, or something to that effect :grin2:)? Just the usual market demand / people's notions of the brand?

It'll be great for when I buy, but it'll be sucky for when I sell. But to be honest, I'll probably sell it like ten years later, given that my current car is an '00 Protege we've had in the family since new -- and at that point, it'll be worth $2K regardless of whether it's a Mazda or a Honda :grin2:
 

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They probably sell 10 Accords for every 6.

Buying a new car with any intentions of selling it within the first 10 years will certainly be you throwing money away. Never buy new unless you plan to keep it for a very long time.

And for the record, Mercedes have the largest drop in values in the used market. It is not uncommon to buy a 10 year old Mercedes for 1/4 of it's value, many times even less. When you are talking a $100K vehicle now worth $25K (as I said, likely far less) after 10 years, that is some serious loss in your money spent.
 

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At this point, with these cars having a nice service record (that is, nothing really to complain about in terms of service life issues) I'd be all over a 2 or 3 year old "6" with the MTX at $10-11k. In fact I'd argue that's one of the best deals on the market right now for ANY vehicle, anywhere.

Mine was bought new and has 110k on the clock -- with exactly zero problems. The "required maintenance" schedule on these cars is light and inexpensive too, which just adds to the attractiveness of the package.

I buy new for one reason -- I'm interested in having a "zero mile" base on the vehicle since I do all my own work and I know exactly what the service history is from top to bottom. But I also tend to keep cars until they are literally worth almost nothing (e.g. the '02 Suburban in my driveway, which is still used sometimes, and is worth almost exactly zero.) If you're someone who drives a car for 2-3 years then buying a 2 year old model is the right move economically, and it's almost impossible to argue with the "6" in that environment. Buy one from a southern state that has no salt use and no history of registration or use in the northern half of the country -- fly down to get it if you need to and drive it home.

If/when my kid's '03 Jetta (which was once mine) pukes up a lung my recommendation to her is going to be to jump all over one of these, since the Jetta is a stick as well.

BTW I have an entirely different view of anything with an ATX in it. I hate them with a white-hot passion as they're hideously expensive to fix when (not if) they break and I don't like the loss of driver control as well. There are few things on a gas engine car that can economically total the vehicle without wrecking it, and a modern ATX is one of them.
 

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Mazda's resale value will suffer for a bit longer because they're still trying to redeem themselves after pushing out the Rx7 and Rx8 (Rx8 being arguably one of the worst modern-day engines placed in a vehicle).

That plus all their non-rotary engines were coming from Ford in the 80s and 90s, and you've got a lot less people interested in their cars.

The last 5 years or so, starting with the Cx5, they've really redeemed themselves and are making a good push against the giants that are Honda and Toyota.
 

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Well, expect used car prices to plunge further generally.

Why? Because "new car" prices have skyrocketed, driven by "cheap money" (financing deals which include leases.) We've all lived through a 30 year long secular trend of "cheaper money" over time, which leads to increasing leverage and the ability to roll debt into new issues for less coupon, which in turn means each "turn of the crank" can come with MORE principal outstanding.

This has driven a monstrous amount of uneconomic behavior which is reflected in price.

That trend is over -- it may be that we're in for decades of flat interest rates (no further turns of the crank) or it may be that we'll see generally-rising rates (which will bankrupt everyone who played the game) but that we're not going to get more of the last 30 years is mathematical fact.

So no, there won't be a "resurgence" of used car prices -- for any brand. In relative terms Mazda may have some brighter days ahead in this regard, but in a sinking market that's small consolation. The good news is that for those interested in buying in the used market price is going the right way for you and will likely continue to be doing so for quite some time.
 

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We are perhaps in the last and final golden age for internal combustion powered automobiles. Not since the late 60s have we had so many good cars (and SUVs) from so many manufacturers at such prices. If you have have a budget of $35-40k for a car, the options today are endless. From great muscle cars, affordable sports cars,hot hatches, rally thoroughbreds, entry level luxury cars and even fun family economy sedans like the Mazda6/Civic/Elantra sport etc that offer so much performance and value for the money. Hybrids, semi-autonomous vehicles, ride sharing and full electrics will be norm in the coming decade. This may be our last chance to buy something pure before they are relegated to museums and car show turfs.

tickerguy, your theory of 30 year long secular trend of "cheaper money" is interesting. Although i am seeing anywhere from 10%-20% off sticker on many brand new cars in my area ( found a brand new Ford Fusion Sport for 25k! ), you may be right about the economy in general. The home prices in my area (DC metro) are now almost 30% above their peak bubble prices from 2005-06. The stock market looks near scary at such dizzying heights, as does the bond prices and other investment grade collectibles like art, vintage cars etc. Wonder how things are going to look like if and when the economy slows down or worse crashes. Sorry, i digress !
 

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It's not a theory, nor is what it does in various areas of finance (e.g. nobody buys a house, they buy a payment, etc.)

We wouldn't have "average" new car deals over $35k without this. Not a prayer in Hell; there's no chance of the average family having that sort of money if rates were at 7% for car deals and 5% for 20% down home mortgages (and at least 500bps higher if you were under 20%.) It extends everywhere, from housing to cars to corporate and municipal finance, and it's all in the data for anyone who cares to look.

There are plenty of people who think "AI" is going to make self-driving cars (true ones, Type V with no wheel or pedals) happen within the next few years. I'll take the other side of that bet. "AI" is nothing more than pattern recognition which is why they're feeding MILLIONS of vehicle miles worth of data into these systems to process, yet you put 40 hours of wheel time on a 16 year old and they're considered minimally competent for a license. Why? Because the kid can actually think (synthesize "out of scope" with what the kid has actually SEEN while driving thus far) and the computer cannot; it can only compare with what it has in its fed-in data to make a decision. Either that changes (which no computer in history has yet achieved and there's no indication one will either) or the paradigm and data sets required for "truly autonomous cars" to function have to be established -- and neither is happening within the next few years.

As for pure electric, sorry, but nope. The laws of physics (specifically, thermodynamics) are not suggestions. :)
 

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Well, expect used car prices to plunge further generally.

Why? Because "new car" prices have skyrocketed, driven by "cheap money" (financing deals which include leases.)
Everything I read is that used car prices are expected to decline because of the glut of lease returns about to hit dealers from the '13 to '15 banner years after the great recession.

Buying a new car with any intentions of selling it within the first 10 years will certainly be you throwing money away. Never buy new unless you plan to keep it for a very long time.
Everyone spends money on something they enjoy. You obviously don't enjoy new cars so you choose to drive them into the ground. That's fine for you. I very much enjoy new cars so I trade them in every 3-4 years. I accept the average $250 per month depreciation I pay in order to have the new car smell, as opposed to the $50-$100 per month I might pay driving a 5+ year old car. I do 95% of my own maintenance work around the house so I more than make up for it there. I saved over $3,000 by painting my own house. Took 5 full days to do it, but I got to spend that money on a new car instead. No regrets!
 

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If you like a new car every 2-3 years then leasing is the best possible option. I would love a new car, I used to switch up new cars every few years when we could afford it.

I simply do not have the disposable cash to buy new. My situation in life does not allow me to commit to a $400+ a month payment (everything is much more expensive in Canada) for the next 5+ years. I even have mixed feelings about carrying a mortgage because my life would be much simpler if I did not have to worry about maintaining a house as well.

It really comes down to one's financial situation. I prefer to own and maintain. If I average out how much I spend on parts (I do all my own work) I likely spend $200 a month to maintain my used car. The main difference is that if I can't afford my monthly payment, meaning my car is broken down and I can't afford the part, the repo man doesn't come looking for it.
 

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If you like a new car every 2-3 years then leasing is the best possible option. I would love a new car, I used to switch up new cars every few years when we could afford it.

I simply do not have the disposable cash to buy new. My situation in life does not allow me to commit to a $400+ a month payment (everything is much more expensive in Canada) for the next 5+ years. I even have mixed feelings about carrying a mortgage because my life would be much simpler if I did not have to worry about maintaining a house as well.

It really comes down to one's financial situation. I prefer to own and maintain. If I average out how much I spend on parts (I do all my own work) I likely spend $200 a month to maintain my used car. The main difference is that if I can't afford my monthly payment, meaning my car is broken down and I can't afford the part, the repo man doesn't come looking for it.
I'm confident I've done no worse financially by trading in and buying versus leasing. I always search out the one car that's discounted most on dealer lots in the region. I'm flexible on color and most options. Every new car I've bought in the past 10 years has been at roughly a 20% discount under MSRP. My depreciation on all my traded in cars has been in the $230-250 range on average per month. That's less than the (effective) lease payment I would expect on those cars as they were optioned. And by buying you can trade in whenever you want and you don't risk getting hit with fees at least turn in.

You spend $200 per month to maintain - I probably spend less than $200 per year to maintain the typical new car. Even less if the first few oil changes are free which they commonly are these days.

But we do agree that it depends on each individual's financial situation and preferences. Some folks like to spend money on cruises, electronics, custom wheels for their car, etc. I don't. :cheers::cheers:
 

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Discussion Starter #15
Great discussion guys!

I'm currently coming from two vastly different experiences:

* A 1998 Honda Accord that I bought in 2003 with 78K miles, and drove until 2013, hitting 240K miles. At that point I gave the Accord to my dad, and then drove:

* A 2010 Subaru Legacy 2.5GT, that I bought in 2013 with 69K miles, and sold in 2016 with 112K miles.

Aside from the performance of each car, the biggest difference between the two was that the Subaru required a $6,000 engine rebuild at 108K miles, just 8K miles past its CPO warranty. The thing broke my heart and really salted me from owning another Subaru, ever.

On the flipside, my dad returned the Accord to me a couple of months ago with 335K miles. Yes, it's seen better days and it requires a quart of oil every week or two, but the damn thing *runs*.

No reason to go into all the details on why one worked better than the other -- I've beaten all of that to death in my head -- but I hope you have an idea why I was asking about Mazda's depreciation. I wasn't sure if it was something like the RX-8, where they go kaboom after 50K miles, or if it was purely based on good ol' devaluation.

It sounds to me from the replies that there aren't any glaring, obvious issues, but more so that they're not hugely in-demand cars, and don't hold their resale value well...

Which is great (at least now) >:)
 
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