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Old 03-16-17, 07:35 AM   #1
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Default Random Question

Potentially looking to get my first STI and have been looking online and was noticing that you can get a 2011-2012 STI almost for the same price as an 07-08 STI low to mid $20k's. The dealers just pricing way too high/low or is there something I'm missing???
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Old 03-16-17, 12:01 PM   #2
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Default Re: Random Question

Supply and demand 101 basically.
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Old 03-16-17, 12:49 PM   #3
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Default Re: Random Question

Random Answer: Pineapple


Educated Guess: There is more demand for the 04-07 is higher OR the depreciation slows down after a few years and becomes flat (i.e. The depreciation line is convex. As the vehicle gets older, it depreciates less and less. This is assuming that all other variables, such as trim, mileage and condition, are the same.)

Indifference Curves are Convex to Origin Help for - Transtutors

Imagine the points are the following year of the STI:

X1,Y1: 2017
X2,Y2: 2014
X3,Y3: 2011
X4,Y4: 2008

The 2004-2007 would be on that line after X4,Y4 with minimal depreciation between the years.

Feel free to change these model years out for any year you'd like. It's the same principle.

Basically, the depreciation rate depreciates year-over-year. Adding in variables will place the price points all over the graph, but at some point you're buying the car for it's intrinsic value (motor, transmission, body, and the fact that the VIN says that it's an STI bro).


Source: I went to a second-rate state school and almost passed my Economics classes.

Last edited by SluttyCat; 03-16-17 at 01:10 PM.
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Old 03-16-17, 01:16 PM   #4
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Default Re: Random Question

Quote:
Originally Posted by SluttyCat View Post
Random Answer: Pineapple





Educated Guess: There is more demand for the 04-07 is higher OR the depreciation slows down after a few years and becomes flat (i.e. The depreciation line is convex. As the vehicle gets older, it depreciates less and less. This is assuming that all other variables, such as trim, mileage and condition, are the same.)



Indifference Curves are Convex to Origin Help for - Transtutors



Imagine the points are the following year of the STI:



X1,Y1: 2017

X2,Y2: 2014

X3,Y3: 2011

X4,Y4: 2008



The 2004-2007 would be on that line after X4,Y4 with minimal depreciation between the years.



Feel free to change these model years out for any year you'd like. It's the same principle.



Basically, the depreciation rate depreciates year-over-year. Adding in variables will place the price points all over the graph, but at some point you're buying the car for it's intrinsic value (motor, transmission, body, and the fact that the VIN says that it's an STI bro).





Source: I went to a second-rate state school and almost passed my Economics classes.


Learning has occurred.
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Old 03-20-17, 08:59 AM   #5
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Default Re: Random Question

Yup, been that way for awhile. The GD generation (04-07) are in very high demand and are holding their value very well.
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Old 03-21-17, 05:41 AM   #6
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Default Re: Random Question

There is also the variable that the flat bill bro types seem to think the fact that the car passed through their filthy hands and all the ebay parts increase the car's value.
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