Gloucesternige
Well-Known Member
- Thread starter
- #1
I'd like to kick off by saying I am not too bothered by depreciation as i wont be selling my Mustang for a long long time. But...
A friend was telling me he saw something on F***book (My terminology for FaceBook), that stated the Mustang was the fastest depreciating car in the UK.
Of course, I was shocked by this and showed him the many ads for used cars that are over new list. Then I searched "Mustang depreciation" on Google.. well, first of all I got the 99.5% residuals in year one stuff, which cannot be that accurate based on the fact it was written while there are still 9 month waits for new ones and the car hadn't been around for much more than a year so I doubt many were being sold as used cars with proper mileage on them?
Then I saw the story that probably made its way on to F***book... Apparently someone got a finance PCP quotation that stated the car would only be worth £13K after four years. I find this quite realistic TBH, and it is purely a result of the market not having a clue where Mustang prices will go. In four years time we might be paying £8 for a gallon pf petrol?, that's not gonna help. There will have been a facelift and a new model in the four year window and lets face it.. a big V8 sports coupe is never gonna hold up that well in a used car market.. just look at the big Audi's, BMW's and Merc's.
We must also remember that dealers got burned a few years back by inflating GFV's to get customers payments lower. I bought a Jeep Patriot in 2008 on a PCP with a GFV of £12500. As it turned out, the actual value of the car was only just over £9000 when it had to go back, so the dealer was out of pocket. This was probably down to the recession which hit ion 2009?
So.. when your friends take great delight in telling you that your pride and joy is losing money faster than a screaming bullet, tell them to go look at some facts and how finance companies look at risk management. If the GFV is set too high, you pay less because you borrow less, if the GFV is low, you pay more because you've bought a higher stake in the car, but, if the GFV is £13K and your car is actually worth £20K, you've got £7K for your next car or you buy the car for £13K and drive away.. only a fool would just give it back!!
A friend was telling me he saw something on F***book (My terminology for FaceBook), that stated the Mustang was the fastest depreciating car in the UK.
Of course, I was shocked by this and showed him the many ads for used cars that are over new list. Then I searched "Mustang depreciation" on Google.. well, first of all I got the 99.5% residuals in year one stuff, which cannot be that accurate based on the fact it was written while there are still 9 month waits for new ones and the car hadn't been around for much more than a year so I doubt many were being sold as used cars with proper mileage on them?
Then I saw the story that probably made its way on to F***book... Apparently someone got a finance PCP quotation that stated the car would only be worth £13K after four years. I find this quite realistic TBH, and it is purely a result of the market not having a clue where Mustang prices will go. In four years time we might be paying £8 for a gallon pf petrol?, that's not gonna help. There will have been a facelift and a new model in the four year window and lets face it.. a big V8 sports coupe is never gonna hold up that well in a used car market.. just look at the big Audi's, BMW's and Merc's.
We must also remember that dealers got burned a few years back by inflating GFV's to get customers payments lower. I bought a Jeep Patriot in 2008 on a PCP with a GFV of £12500. As it turned out, the actual value of the car was only just over £9000 when it had to go back, so the dealer was out of pocket. This was probably down to the recession which hit ion 2009?
So.. when your friends take great delight in telling you that your pride and joy is losing money faster than a screaming bullet, tell them to go look at some facts and how finance companies look at risk management. If the GFV is set too high, you pay less because you borrow less, if the GFV is low, you pay more because you've bought a higher stake in the car, but, if the GFV is £13K and your car is actually worth £20K, you've got £7K for your next car or you buy the car for £13K and drive away.. only a fool would just give it back!!
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