Question about Trade In Value / Depreciation

[Zelek]

My 17' GT PP that is 5 weeks old with less than 3K miles books for 32.5K. MSRP was 44.5K, I paid 45K OTD all in. 12.5K hit in 5 weeks is sad. Glad I like the car and held out for all the options I wanted.

Holy crap.... I had the same MSRP and I ended up at $36800 before TTL. :(

Sponsored

 

[wireeater]

Ok..., we get it. He overpaid. lol.

OP, I don't think negative equity is worth upgrading minor features (IE, seats, unit, etc). Hold out for the 3rd year until your payments have at least balanced your payoff and trade it in. I personally wouldn't trade a 6th gen for a 6th gen, it doesn't make any sense. There are plenty of aftermarket solutions to fulfill you needs. You're just getting that feeling that most car people get after owning a car for a year or two. Hold it out.

 

[Kevin08]

Holy crap.... I had the same MSRP and I ended up at $36800 before TTL. :(

To be fair he is in Socal so $36k in Texas money is about $50k in California money.

 

[airfuel]

Different markets, different prices.

OP, do some upgrades to make the car more yours and enjoy it.

If it really bugs you, you will take a $$$$$ hit.
Your choice.

 

[lemers]

Different markets, different money.

But if I were in SoCal; I'd drive to a cheaper market to save $10K+

 

[AEengnr]

This is why I bought low mileage used.

MSRP 43K
Mileage 8,700
Paid 29K in Jan
KBB 27-29K currently with 15K miles on it

That is almost identical to what I did except mine had 18k miles on it. I paid 29 out the door in March for my 2015 premium. Dealer kbb was 32k at the time.

With 23k miles, kbb trade in is now 27k.

 

[AEengnr]

One thing to consider is how important the premium features are. If you don't enjoy getting in the car everyday because it doesn't have those features, then taking a hit on value may be worth the trade for happiness.

On the other side though, you could look at it and say you are lucky to even be driving a mustang when probably 70% of the US population is driving cars with less horsepower, significantly worse handling, and bland styling.

 

[Martman GT]

To be fair he is in Socal so $36k in Texas money is about $50k in California money.

+1 The market here in Reno, NV is like CA. Every dealer near me wanted 2K ADM and wouldn't budge off that price. I was able to find a dealer in Yuba City, CA that sold me my GT Premium for $298 over invoice which was about $38K. I met a guy that lived about 2 miles from me who bought a GT 350 and he had to buy from a dealer in New Mexico to get it for MSRP with no ADM.

Market is everything.

To the OP. KBB doesn't mean crap when trading a car. Auction prices (and time of year) are what really determine trade value. The market is flooded with eco boost Mustangs from car rental companies. This brings the value on these cars way down. When I was Internet Manager at a Ford dealer, the used car buyer used to get Mitsubishi SUV for 7K BELOW KBB wholesale numbers. KBB is strictly a guide for lenders to judge how much they will loan on used car. The dealer my wife works for (and many others) use black book as a guide for trade-ins, and those numbers aren't as easy to research as KBB is.

I traded my GT in for a 4 wheel drive vehicle this past winter, and I took a hit on trade value due to it being winter. People up here don't buy sports cars when it's snowing. Your issue is going to be having a base model eco boost since a number of the rental fleet cars coming into the dealers are so cheap.

 

[Zelek]

To be fair he is in Socal so $36k in Texas money is about $50k in California money.

So that's why all of them are trying to move to Austin. :doh:

Rather than deal with that price, why not buy it out of state?

 

[Ocotillo Boy]

Ouch lol. Good thing I like it. In So Cal if you can get a mustang for msrp OTD or close to it you did good. We get fee'd to death out here.

 

[Kevin08]

So that's why all of them are trying to move to Austin. :doh:

Nah, only hipsters and silicon valley rejects are moving to Austin. They're trying to bring Portlandia to Texas.

 

[Zelek]

Nah, only hipsters and silicon valley rejects are moving to Austin. They're trying to bring Portlandia to Texas.

You wouldn't believe how many Cali license plates I see almost daily here.

 

[jvivlemore]

One thing to consider is how important the premium features are. If you don't enjoy getting in the car everyday because it doesn't have those features, then taking a hit on value may be worth the trade for happiness.

On the other side though, you could look at it and say you are lucky to even be driving a mustang when probably 70% of the US population is driving cars with less horsepower, significantly worse handling, and bland styling.

That's where I'm at right now. I love the outside of the car but wish I had those Premium features instead. My daughter is also about to start driving and was considered even my Ecoboost was too much car for her to be driving even with me in the car. I looked at Focus/Fusion first but the residual isn't strong enough to lower or give me the same payment per month. I hadn't looked at a new Mustang though. I'd love a Premium Mustang but guessing that payment would definitely be higher unless they are desperate to unload them right now which I'm not sure about.

 

[RegDir]

OP - Bite the bullet and stick with the car. You made one mistake buying a car you could not afford, don't make another one.

Break the negative equity cycle now before you get in too deep. You should never be underwater on asset but especially not a depreciating one.

 

[jvivlemore]

OP - Bite the bullet and stick with the car. You made one mistake buying a car you could not afford, don't make another one.

Break the negative equity cycle now before you get in too deep. You should never be underwater on asset but especially not a depreciating one.

It's not I can't afford it issue really. I was just exploring options due to my daughter being added to our policy and once I was quoted other vehicles next to the Mustang realized how much more it will cost to have in the house. The mistake was buying a Dodge Dart BEFORE the Mustang that ended up being a piece of crap and the most unreliable car in the history of me buying cars. The Mustang has probably been my favorite car purchase to date. Just wish I would have bought a Premium is all really.

Sponsored