Are you concerned about the resale on your 07+ Tundra?

[mhadden]

I know it's a Toyota, and most Toyota's have great resale value. But with these rebate incentives that are coming out, I'm a little worried that it'll pose a negative effect on the resale value in the future. Look at the Big 3...it's been stated that the incentives that they offer are part of why the resale value isn't great (granted they sometimes issue up to $7500 in rebates).

Just wanted to see if I was the only one concerned.

[07 firecrew]

you must not be a tundra owner, or you have nothing freaking else to do.

[mhadden]

I am a Tundra owner, but I'm work and it's slow today

It is an honest question though.

[3UR-FE]

Tundras are selling like hotcakes


The rebates are from the factory.......the reason Toyota is putting out all of the incentives is because they are bulding way more than they used to.

the idea behind this is to saturate the market with Tundras. The more that there are out there, the more people have experiences with them.

Toyotas, in general, provide positive expereinces. This is the first time Toyota has MASS produced a truck. They are trying to get as many as they can on the road.

To give you an idea of how many Tundras they are making.....we have about 50% more Tundras right now on our lot that we do Camrys


vehicles used to trickle in.... hence the FJs and the Avalons that you had to pay $5,000 over sticker to buy when they first came out.

The Tundras flooded the lot when they got here... we got 4 the first day......anyone who is used to Toyotas allocation practices knows that this is about 3 more than you usually get in the first month.

[EAHinsch]

The rebates and incentives are there to try and remain competitive against the domestics who are trying to give away their vehciles at 33% off. It is like a ROSS or bargain store with those things! Toyota is a business and has to remain competitive in the market. Even though the Tundra has more standard option, people generally just look at the obvious features as a comparison base. Resale will be fine.

[optiic]

Of course I'm concerned about resale, to not be would be silly. I do dislike the fact that the incentives knock down the current market value of my truck that much more. If you bought a Tundra at 30k a month or so ago with the depreciation and the incentives knock your market value to like 24k - 25k at most. It's fine if you paid cash and took the 3k off but if you financed you start at 3k+ upside down, not including the standard drive off the lot depreciation. I plan to keep it for at least 3-5 years and I hope it starts to level off soon and hold.

[mhadden]

Glad to hear some opinions. I figured the reason for the rebate was gas prices more than the above stated reasons. I was just curious, especially considering dealerships are starting to sell these things below the "inflated" invoice and on top you could get the 3k rebate.

[FRAMED82]

Without the $3,000 rebate, your truck might be worth $3,000 more come re-sale or trade-in time. However, with the $3,000 rebate, it might be worth $3,000 less at trade-in time. Regardless, it's pretty much a wash. Save the $3,000 up front and take the hit later, or take the hit first and save come trade-in time.

This is why Honda has the highest re-sale value and why Toyota keeps their re-sale right up there with them. Your American auto manufacturer's often times offer $7,000+ off of sticker. Naturally, they will be worth less when you trade them in.

[slackjaw07]

Originally Posted by 07 firecrew

you must not be a tundra owner, or you have nothing freaking else to do.

I'm with you. '07 Tundras came out less than 4 months ago and he's already worried about effect of recent rebates on the resale value? Message to mhadden: go enjoy your truck!

[mhadden]

Originally Posted by slackjaw07

Message to mhadden: go enjoy your truck!

Actually the wife drives it daily I only enjoy on the weekends

[TundraMaxxer]

I'm not the least bit concerned because when I buy a vehicle, it is well-researched and I make sure it is a carefully-considered, well-thought-out decision. Then I drive it until the wheels fall off (or almost). The exception, of course, is if I'm having problems. But I don't expect that. My last truck (Toyota Tacoma) was nearly 10 years old and had a near perfect service/repair record when I finally traded it on my new 07 CrewMax. The Tacoma yielded 27.5% of its original value (total purchase price) on a TRADE-IN and I'm sure would have been much higher had I sold it to a private party. I was happy with that considering the age and mileage, and I'm sure over those years the Tacos had numerous sales incentives and rebates going.

I could, however, understand someone's concern if they trade or sell their vehicle every couple of years or so. Then again, I don't see where Toyota will suffer much, comparatively speaking, when you consider other makes (Ford, Chevy, Dodge, etc.) which are inferior.

[rubendog]

The local newspapers here have huge discounts on all the trucks, and that overall price pressure does affect the resale value of trucks, new and used. The paper here listed new 2008 F250's selling for $9k below MSRP. Holy cow!

Right now I'm trying to sell my 2001 F250 and I can tell you the effect of all the manufacturers dumping so many trucks on the market is affecting the buying market. People figure they can just buy a new truck. The manufacturers are creating a price spiral that will chew up the truck market over the next 5-10 years.

That's good for consumers in the long run, but it will be tough on resale values during that period. The real cause of this problem is that auto makers have been using the truck market as their cash cow for years. Some models have as much as $17k pure profit. In a true free-market economy that profit can't last because a new competitor will come in and figure out a way to commoditize the product and make a killing with a much smaller profit.

All of this is most dangerous for Ford and GM. They have become too dependent on that huge profit margin. In effect, they have been working together to keep those margins high because to fight for profit from each other would be harmful to them both. Problem is, Toyota isn't in that same position and now they're coming into the market and upsetting the balance.

Toyota is going to force a new level of engineering pressure and price pressure. Right now Toyota wants to keep their truck prices a little high relative to the domestics so that they don't over-compete. And they don't mind a little of that fat profit too. But the new features Toyota is pushing are really creating intense profit pressure on GM and Ford. They will get killed trying to match the feature level across their huge volume of trucks (can you imagine a 6-speed in every Ford and GM truck?).

All of this simply says that it will be interesting to watch how the next 10 years play out. It's going to be a good market to buy a truck in. A terrible market to sell a truck in. While this is scary for the average consumer, it's going to be absolutely terrifying for Ford and GM. My advice to buyers would be "Don't overextend yourself".

[bugchucker]

There should be an age limit or something to screen individuals from posting stupid polls!

[mhadden]

Originally Posted by bugchucker

There should be an age limit or something to screen individuals from posting stupid polls!

You, sir, are the reason I am not liking TundraSolutions...My question was an honest question about resale and it appears others share my concern. My age should have nothing to do with anything on this board.

[slackjaw07]

Originally Posted by bugchucker

There should be an age limit or something to screen individuals from posting stupid polls!

Maybe while we're at it we can set an age limit to prevent individuals from making stupid posts!