Look at the UK for results.
They have had Evos for quite a while already and when the next version of the Evo comes out, the current version's price decreases quite a bit.
e.g. new Evo8 about 27k, Evo7 22k, Evo 6 less than 20k

Evos wont hold their value because the current Evos are not limited production cars. If Mitsu sells less than 6000 cars this year, it is because of a lack of demand, dealer gourging, bad economy.

 

What about the effect of 2fast2furious? Will it have the Supra Syndrome?

 

I believe the resale on stock EVO's will be pretty good for the market, especially if it is in excellent (or mint) condition. People don't want a car with alot of modifications b/c thats a sign its been beaten. If they fly out of the dealerships next year at the same rate they are this year then that will be good for EVO owners.

Jesse

 

The dealer here in N.W. Arkansas (Fayetteville) has had trouble selling ANY of the ones they have received. They still have two of the first three and they are available for sticker or maybe even less... Collectible? Not unless they stop sending them to the US. Hold their value? Don't bet on it. The suckers who paid over list are the ones who are going to get hosed the worst. Come time to sell they will feel the pain of depreciation the sharpest. I am a big Evo fan but it is most definately not an investment item. Buy it to enjoy it, but don't delude yourself into over estimating it's future value.

 

well the 5 dealers that i called to see if they had any all said the same thing about only making a limited amount. so i dont know

 

In asia where Evos are a dime a dozen, the values do not really hold that well since MMC keeps on coming out with new versions in such a short period of time. During the Evo 4-5-6 period. People were bombarded with a lot of used evos at cheap prices since the owners traded up for the new versions.

 

To pile on to your point, a good point that I always like to make:

A new car is NEVER an investment. Don't ever let anyone tell you otherwise (salesmen like to talk about a car purchase as "an important investment"--that's rubbish). An investment is bought for appreciation or dividends (or tax breaks haha). Think of a new car purchase as a devestment. The only question is how bad the depreciation will be.

A great way to look at it is IRR (internal rate of return). A good investment has a positive IRR. A car purchase will always have a negative IRR. Interesting to note that leasing a new car will almost always produce a better IRR than buying it.

 

Dealers will SAY almost anything, but put almost nothing in writing...

 

The actual lease residuals are HORRENDOUS..

But so are the BMW E46 M3's!!
Reason is, and BMW and any car company selling a performance car really doesn't WANT the car to come back, because they are all a little more BEAT.

Based on my research, and aggressive but ACCURATE deductions, I would say the EVO with good miles and not needing anything will be worth 50% of its MSRP after 36 months..

Think about it, a 36,000 mile 2003 EVO in awesome shape w/Balance of Factory Warranty and UNUSED PIT PASSes for $15,900 in 2006/07..

Would you buy it?

Duh..
Of course you would..cuz its worth that..
How many few year old cars out there can you buy right now for that CHEAP!!..(just think of a 2000 model year car, same performance alsmost, and features, for mid teens..)
Very few..

Here is a sample lease based on these facts..

12,000 per year, 36 Months, $30,000 selling price WITH Pit PASS, 0 down just fees up front..

$596.00 per month plus tax..
w/2,000 down plus fees..$541.00 plus tax..

I almost think that that residual could be LOW ...Anyone agree??

 

There's no way the EVO's vlaue will hold up well. All you have to do is look at the price dealers are charging. It's only been out a short time and they're already available below MSRP. If you want a car with a higher resale value pick a car like the S2K (when they were new). They had limited numbers AND you couldn't find one for less then $5k OVER MSRP, not for months after it's release, but YEARS after its release. That's high demand fellas

I think if the economy wasn't in the crapper, and there wasn't so much competition around from other auto makers the situation would be different, but right now there are not many cars who's resale value will hold up well. Of course, that's a good thing for those of us waiting a couple of years to pick up a used EVO or STi

 

Wow - this is turning into one of the best, most mature, most factual discussions I've seen on this board...

As a data point, the residual on my $24,900 '02 WRX, 36 months, 15K miles/yr is about $13,900, which is of course low (high lease payments, good chance to make money on the flip).

Regarding the S2K, Honda's value retention has always been fabulous. The Accord in particular is a great deal in that respect. My mother bought a used Civic, drove it for 3 years, and sold it for more than she bought it for! Gotta love Hondas in that respect!

Also, remember that new cars are so cheap now (incentives) that the used car market is getting absolutely KILLED, meaning residuals might drop commensurately.

But I think we all agree that the Evo is NOT a good financial investment -- you have to think of it as an investment in FUN or you'll be one very unhappy camper.

As yet another data point, also remember that turbos tend to crap out somewhere in the neighborhood of 70K miles, but are not as expensive to replace as you might expect...

 

Okay, you are crazy..
Maybe wherever you were from allowed the S2000 to bring list for YEARS but in the Midwest? Sheet noo.

I had a 2001 Silver S2000 that I couldn't GIVE away in August of 2002 for $25,900 with only 6500 miles..

The party was over on the S2000 MAYBE 8 or 9 months after they came out. That car and others like it were selling for under or at MSRP as well, just like the EVO. I have heard PLENTY of stories about that car to believe it, too.

Also, the EVO is NOT a two seat roadster like the S2000. Granted, they are both performance vehicles, but the market appeal of the EVO is far broader than a convertable Roadster w/rear wheel drive...This is what KILLS the S2000 in my opinion..

Bad comparo ..

 

there is no way you will buy an EVO for 15k in 36 months...

i find that hard to imagine...

well kept 2g GSX's are going for 14-18k, the EVO has to be 20K+

don't be too hard on yourselves... he EVO isn't an investment, but it's not a clunker that will totally be close to worthless in 36 months...

 

As I mentined above...
BTW..The published ALG residual for the EVO is 41%..
So overshoot ALG a little, but to say 20 grand? That is approximetaly a 65% residual!!

 

Start imagining...

See the post above. 41% residual which comes to about $12K (BMW's, for example, tend to be around 60%-62%).

With Mitsubishi's bad rep for quality (no flames please), and no comp for the finance guys to go off, also considering that it is a performance car (which tends to be driven harder than the average car) it all makes cruel sense. Being turbocharged also hits the residual methinks.

Now, if Mitsu stays on the Evo VIII generation for more than 3 years it will help, but history says otherwise.

What remains to be seen is whether the car will worth quite a bit more to an enthusiasts who can't afford a new one three years from now. That's what will set the real world residual, along with supply.

I am hoping that my WRX will be worth quite a bit more than $13,900 at the end of my 3 year lease -- then I can buy it and flip it, but who knows?

I'm not holding my breath...

Something tells me that an MMC car is not going to be worth more than a BMW (60-62 residual)...

As you say, 41% sounds low; so optimistically, 50%?

There's your $15K!

Ouch!