The impact of newer, higher HP car to used car (same model)

[goray]

hello all.
recently I got this problem.
we all knew Honda's going to have new civic roll out soon. it is more powerful then this generation.

I am talking specific about SIR, 02-05.
what kind of impact will a newer design/more power next generation car will have to it predecessors.

I am consider an 02-05 SIR, I know RSX is a better choice but I can only fit into an SIR (weird huh?)
price of a 02-05 SIR is a lot higher then red book.
but it should hold the value OK coz it wasn't a popular car.
so my question is, "Generally, when a next generation car comes out with better everything, what will the predecessors' price drop. was it by a lot or it doesn't even matters?'

thank you.

[tpl]

for "enthusiast cars" it is completely random.

When the new 5 series came out lots of previous model owners said  yechh ugly we will keep our old ones.... a year later that has changed around as people have seen more new ones and have got used to the look.
so there would have been a brief spurt in value of the preowned 5 series and I bet it has settled down.

Sometime a successor model is much better sometimes it is worse. Example is that Honda "decontented" the civic about 2 generations ago so it was less easy to make a race car from it.

In general, a new model will cause a blip downwards in the price of the older one

[The Mighty Duck]

This is just guesswork on my part, however, I would predict that the new SiR will cause a number of the older SiRs to be put up for sale, and thus I think that will bring the price down slightly...  SiRs are relatively rare, and thus expensive.  With more available, prices will drop.

Or so I would imagine.

[articsteve]

SiRs are relatively rare, and thus expensive. With more available, prices will drop.

I didn't spend much time looking in the Toronto Trader because there is no category for "SIR" but I saw 10 for private sale.  Low was $16,000 and high was 19,500.  Here is an example:

Year: 2003
Make: HONDA
Model: CIVIC
Model Detail: SIR
Price: $17,750
Mileage: 10,000 km  
(all stock)

Prices seem pretty low to me considering the list was $25,500.

It's hard to say how the 2006 SIR will sell in Canada because the insurance rates are so extreme in Ontario.  The market that most wants this car can't afford the insurance.  The 30's and up crowd go for the RSX.  The US is a different story because they pay low insurance rates across the board and the place is swimming in money.

am consider an 02-05 SIR, I know RSX is a better choice but I can only fit into an SIR (weird huh?)  
price of a 02-05 SIR is a lot higher then red book

Just so you know in Canada there was 02/03 and 04 models.  No 2005.  There are 2 in the Toronto trader, both 03s with wheel kits, tint (which is a must) and side skirts all with mileage below 50K. Stock these cars look ridiculous. I would say it is a buyers market.

I think by the time these cars get down to the 12K mark the will hold pretty well.

(Message edited by Articsteve on August 15, 2005)

[The Mighty Duck]

Out here the 2002 onwards are all asking around $20 000.  I say relatively expensive because $20 000 will buy you a brand new car - depending on preference you could get a Chevy Cobalt LS for that sum.

The 2000 models are listed around $15 000, however.

[articsteve]

It seems that there is about a 10% surcharge in price, so to speak, on used vehicles in BC over Ontario.

[AVToller]

Yes, it's known as the "rust free" surcharge.

[ovr50]

We prefer to think of Ontario vehicles as 10% less valuable....

[articsteve]

Yes, it's known as the "rust free" surcharge.

Well worth it.

[The Mighty Duck]

LOL.  To true - the number of CRXs and 80s era Accords, Civs, Corollas, et al. is crazy.  Good place to find a first car - lots of options.