While watching Monday night football last night I couldn’t help but laugh at Toyota’s new car commercial. The catchy tune they sing during the commercial consists of a chorus only, with the words “saved by zero” sang over and over again promoting their new 0% financing on a majority of their models.
I am not sure if they mean that their revenues and therefore 4th Qtr will be saved if enough people buy because of 0% financing or if they are saving “us” by providing 0% financing?
In researching new car depreciation for this entry I discovered that a vast majority of experts agree on depreciation figures. In year one you can expect 15-20% depreciation and 10% each year after that.
Here is what Toyota’s “Saved by Zero” financing is really costing:
brand new $32,155
year one $24,000 value
year two $21,600 value
year three $19,440 value
year four $17,496 value
To confirm, I priced out a new Camry on the Toyota site and also found a used one on AutoTrader.com. The results are strikingly similar:
Brand New Camry XLE fully loaded $32,155
2004 Camry XLE fully loaded $16,150
Interesting that even a Toyota Camry, a very reliable car, keeps pace with average new car depreciation rates.
Your “Saved by Zero” deal costs you $333.44 a month or $76.95 a week in depreciation.
A lot can be learned with a little research so that you can decipher who is really saving me and who is looking to save themselves.
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