Cost of Repairs: Or Why You had Better Keep it in Warranty!

In your opinion what do you think would be the fair resale value of my car. I need to sell my car in a hurry. I paid a little over $24k for it. I was thinking and spoke to a few people and they agree that $22,200 is a fair retail value for it. I would love everyones input on this also.

Its a 2002 with
single CD
side airbags
carpeted floor mats
only 4200 miles on it, had it since March
Still smells and looks showroom new
Has Daytime Driving lights
Cruise
And NAV/GPS system.

Ive added small extras like new top quality floor mats to protect the carpeted floor mats and door bumpers

Guess everything else would be considered standard for the 2002. You know what all that is. Tires are the new series.

Price?

$22,200 is what the dealer gave me fo a deal last SEPT02 for the same vehicle you describe, - NEW - 12miles on it 2002. I love it! If I had to sell it I'd take a hit!

Now that it is 2003 model year they are dealing (more) on the remaining 2002's. I have seen many 2002/2003's sitting on the lots.

I'd say fair market for a used 2002 with 4,000 miles - I'd be shooting for $19,999 (under 20K) to pull someone from a new one.

Since there was no price increase for 2003 and you do get the $2,000 deduction ($500 to $800 seen). Finance from Toyota has been 0 down and 0.0%/36months here in the East.

If some one is looking for a loan on a used car the rate is higher. It is a (2002) a model year old & getting close to actual (January) 2003 calander year - Factors people think about, not nice, but, consider.

After January it is a year old.

I did pay another $850 a few days after closing the deal for my 2002 for the Toyate Platium 7year/75,000 warranty - hoping I'd never have to use it but for a resale "Apple and Stick".

Extended warranties

Your thoughts, please. Mine is currently to go ahead and spend the $1,700.00 for the extended warranty to 100k miles.

Maybe I'm way off base here, but I've always believed that extended warranties (for any product) are a waste of money. I figure if something works for 3 years and then breaks, it couldn't be a manufacturing defect, so the extended warranty wouldn't cover it anyway.

Car warranties are worse, because they usually cover parts but not labor, which is often the greater charge. I also distrust them simply because the salesmen try so hard to sell me one. I think it's just a way for them to guarantee that you will take your vehicle back to them for repairs, so they can charge you outrageous labor costs!

Some people buy extended car warranties as insurance against future repairs and maintenance costs, but cars do not usually require rack and pinion replacement. It would be rare to have a repair of that magnitude after your normal warranty expires--especially the Prius with its extra-long warranty for the expensive hybrid components.

With my last car, I kept track of the repair costs after the normal warranty expired, and it turned out I would have almost broken even at 100,000 miles (i.e. cost of repair parts = cost of extended 100,000 mile warranty), but that was only because several larger items failed at 99,000 miles. It was an Oldsmobile--Toyotas have a better record for longevity.

Of course, it depends on the cost of the extended warranty. If it were only $50-$100, I might buy one. However, I think $500+ is more normal and $1700 is definitely too high.

Where did you get your Blue Book value? I just went to http://www.kbb.com and priced a used Prius. Assuming 2001 with 31,000 miles, excellent condition, and basic options selected (and my zip code: 53226), it said $15,490 for private party sale and $13,415 for trade-in. I think this is normal--it indicates the car lost about 25% of its value in the first year or two. They always drop dramatically in value when you drive them off the dealer's lot. When someone says a car holds its value, they mean several years later, you will still get a decent percentage. If you sell a car after only 1-2 years, you will always lose a lot of money. (Maybe you should have leased it.) Hey, look on the bright side--I think you can claim the loss on your taxes to offset any capital gains this year.

Douglas (2002 Silver, Wisconsin)