what is the depreciation on clarity

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So I was shocked to see the dealer give a resale value assessment of only 11 k
I checked the kbb and it is showing about 16 k for a 2018 clarity touring which i bought for 35 k? Car has mileage of only 33 k

That is like depreciating 55 % in three years ?

The CRV that is also 2018 depreciated like 28 % in three years

I would love to buy another depreciated clarity if this is true.
 
You have to think about the depreciation net of the $7500 tax credit. I paid about $28k net of the tax credit for my 2018 touring. A lot of people have done much better than this, approaching $20k for a touring net of the credit. I bought mine relatively early (July 2018) before such deals were available. But for me $16k would be about 40% depreciation. For those that managed the deal closer to $20k, it is more like 20-25% depreciation.
 
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Robert_Alabama said:
You have to think about the depreciation net of the $7500 tax credit. I paid about $28k net of the tax credit. A lot of people have done much better than this, approaching $20k for a touring net of the credit. I bought mine relatively early (July 2018) before such deals were available. But for me $16k would be about 40% depreciation. For those that managed the deal closer to $20k, it is more like 20-25% depreciation.
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20k?
I got Touring version for 34630 OTD of 37284.35 before tax credit. So 27k .. comes to 40 % depreciation ... bought mine feb 2018
 
I’ve said it over and over to people, but the fanbois can’t do simple math. The Clarity has a HORRIBLE residual. Truly bad.
Simple math proves it out, as you’ve discovered.
 
Someone on the FB group just bought a 2021 Touring in NYC for ~$30k before incentives, subtract $1,700 NYS rebate and $7,500 federal tax credit, and you can get a new one for under $21,000. $11k sounds low (not surprising with a dealer), but I wouldn't be that surprised if it was only 2-3k more than that...Its MSRP is $37k, but if you can get it for low 20s, reselling requires a discount on that figure.
 
JustAnotherPoorDriver said:
Someone on the FB group just bought a 2021 Touring in NYC for ~$30k before incentives, subtract $1,700 NYS rebate and $7,500 federal tax credit, and you can get a new one for under $21,000. $11k sounds low (not surprising with a dealer), but I wouldn't be that surprised if it was only 2-3k more than that...Its MSRP is $37k, but if you can get it for low 20s, reselling requires a discount on that figure.
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good that i bought 8 year honda care warranty.
 
JustAnotherPoorDriver said:
Its MSRP is $37k, but if you can get it for low 20s, reselling requires a discount on that figure.
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This is exactly correct. Some 2020’s were going for $8-10K off MSRP. If dealers are selling new ones for a net cost of around $20K, they won’t get much for a 3 year old car with 33K miles. And a dealer is the top candidate to give you the lowest offer.

On the other hand, some owners were selling a year old car for more than $20K and buying a new one for the same price.

The best market for a used Clarity would be in a state that isn’t offering dealer incentives and the best buyer would be someone who isn’t able to take advantage of the Fed credit on a new car. That’s a tough find.
 
JKroll said:
20k?
I got Touring version for 34630 OTD of 37284.35 before tax credit. So 27k .. comes to 40 % depreciation ... bought mine feb 2018
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The EV market has changed a lot since 2018, it is not Honda's fault. A Tesla Model 3 long range RWD used to be $60k, now a much improved model with AWD is $46k. Manufacturers are fighting for market share and ZEV credits. I Bought a certified preowned 2018 BMW i3 REX with 2.5 years bumper to bumper warranty for $19.5k. The new price was $54k. I think 2021 and 2022 will be even more cutthroat with many new models and legacy manufacturers going after Tesla market share.
 
so if there is 8 k difference in price between states say CA and IN becos Honda is dumping more in CA and dont care about sales in IN, it would prob make no sense buying in IN.
Honda distorted the market in order to earn their ZEV credits.
 
Theoretically, resale value would be higher in Indiana where the only “discount” off MSRP is the Fed credit, which is available in every state. If someone in Indiana has to pay full price, their net cost for a new Touring Model would be ~$30K. In that market a used car might sell for $23-24K.

In California a new Touring Model might sell for a net cost of $22,000. So a used car may sell for as little as $15-16K.

It’s also a weird car. Even semi-intelligent people are unaware of it or don’t understand anything about it.

Honda didn’t distort the market. They’re just selling cars in a distorted market.


JKroll said:
so if there is 8 k difference in price between states say CA and IN becos Honda is dumping more in CA and dont care about sales in IN, it would prob make no sense buying in IN.
Honda distorted the market in order to earn their ZEV credits.
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Plug in and all battery car resale is bad. Used 2018 Volts are selling for around $11. Potential looming expensive repairs for used buyers has a lot to with it from what I have read. That said I would love to buy a dirt cheap low miles plugin for my kids to use. I will hold onto mine for a long time.


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When taking into account all the rebates and tax incentives, most people don't pay anywhere close to $35k.

The market is acting rational, sellers are just trying to get something out of nothing.
 
I realize Kelley Blue Book estimates aren't rock-solid, but my 2018 Touring w/22,000 miles just came up at $16,750 "trade-in value" / $19,000 "private party."
It might be interesting if others went to KBB and posted the admittedly imperfect used car value the website shows for their car.
 
Or take a peek at the “Bought my 3rd Clarity” thread to see some actual sale prices on used cars.

In November of 2020, the OP of that thread sold a 2018 Touring to Vroom for $22K+.
 
Depreciation is real, but it's fun if you're buying used. Yesterday (thanks to all the info here!) I drove from Philadelphia to Princeton Honda to pick up a white 2018 touring, with only 13k miles, for only $20,000. That is insanely cheap, and it's like a new car. The drive home was wonderful, with no trace of angry bees going 70 on I276. I can't believe I bought that much PHEV car for so little, especially since, when I started considering buying a PHEV, I thought I'd have to buy a new Prius Prime. The only downer is that Princeton didn't apply the software updates so my HV mileage capacity is reading 1000 miles! Now to find a local dealer or garage that can do the update....
 
Robin Mitchell-Boyask said:
Depreciation is real, but it's fun if you're buying used. Yesterday (thanks to all the info here!) I drove from Philadelphia to Princeton Honda to pick up a white 2018 touring, with only 13k miles, for only $20,000. That is insanely cheap, and it's like a new car. The drive home was wonderful, with no trace of angry bees going 70 on I276. I can't believe I bought that much PHEV car for so little, especially since, when I started considering buying a PHEV, I thought I'd have to buy a new Prius Prime. The only downer is that Princeton didn't apply the software updates so my HV mileage capacity is reading 1000 miles! Now to find a local dealer or garage that can do the update....
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It's amazing that the original owner didn't pay attention to the predicted range error. You'll have to go to a Honda dealer because only they have the computer and the files required to fix that problem. If you can, try to get them to tell you the Battery Capacity, which is simple for them once their computer is hooked up. New Clarity PHEVs typically have a Battery Capacity of 55 Ah, but you should expect a lower value.
 
JKroll said:
So I was shocked to see the dealer give a resale value assessment of only 11 k
I checked the kbb and it is showing about 16 k for a 2018 clarity touring which i bought for 35 k? Car has mileage of only 33 k

That is like depreciating 55 % in three years ?

The CRV that is also 2018 depreciated like 28 % in three years

I would love to buy another depreciated clarity if this is true.
Click to expand...

Seems pretty reasonable. Cars depreciate a ton off the front. With that and considering the average effective cost after EV incentives, that seems extremely reasonable. A new base runs around $16k new after incentives in the right places, so it's still a pretty fantastic deal.
 
All EVs will depreciate 55% or more in three years from MSRP. But no one is paying for the MSRP price. Just look at old Bmw I3, Nissan Leaf depreciation, a lot of depreciation from MSRP, but it does not mean is bad if you factor in Tax Credit and Rebates.
Now look at the example of Nissan Leaf SL Plus MSRP at 45K, but you can buy at 34K with dealer discounts and Nissan incentives. Then, $7500 + CA rebates $3500, you ended up paying around 23K.
Now you tell me if the new Nissan Leaf SL cost 23K, who would buy the old ones if it cost more than 20K. So the old ones should cost less than 20K, which is more than 55% depreciation.
The old EVs have to be very cheap with big depreciation from MSRP simply because of Tax Credits and State Rebates for new EVs. In California, you will get a minimum of 10K. Therefore, in order the old EVs to compete with new ones, they have to be much cheaper.

My 2020 Clarity MSRP 34K, but I paid 29K OTD. After-Tax Credit and State rebates, I paid only $19,500. I will be extremely happy to see my Clarity can depreciate 50% from MSRP in 3 years, which is 17K :)
Matter of fact, I am still happy if it depreciates 60% from MSRP in 3 years, still get the best value from the car since I only paid 19,500
But I do agree, with the exception of Tesla, all EVs depreciate like crazy, much more than ICEs. These facts we need to accept since EVs keeps moving with technology, 3 years old EV seem very old if battery technology keeps advancing that offers faster charging and more range.
BMW I3 for example, the 2017s have 100 miles range, they look good back then, but now noone wants to buy 100 miles range nowadays. That's why BMW I3 depreciates like crazy. It will be the same for current EVs that have 200 miles range now, 3 years from now they will look like very old technology.
 
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Vroom just quoted me $18.5 for my 2020 base with 6k miles that I paid $23.5k for after all incentives only 6 months back.

Very disappointing


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