18 GT PP depreciation

[adams5.0]

Holy crap, so bought a 18 Mustang GT PP in December, sticker 53,000, Mona blue, blue stripped interior, 2000 miles. Paid X Plan minus rebates. Was looking at a F150 to replace my wife’s car. Just out of curiosity I had the mustang apprised, mmmmm 33000. Mmmm thats 20000 in deprecion in two months. Nuts!, duces! I was offered more for my 15 charger scat pack with 32000 miles when I bought the mustang!

Sponsored

 

[TomcatDriver]

Well, it's not $20K depreciation since you didn't pay $20K. I would say as a general rule that depreciation starts from the lowest "good deal" price people can find on it new. Looking around there are dealers offering $7K off MSRP, so I would use that as a starting point. I guarantee that the dealer would turn around and put a $45K+ price on it and sell it as CPO almost new.

 

[offcamber]

Figure 20% depreciation on any non-Shelby mustang in the first year.
Another 9% loss in the second year.

If you consider the current 5k-7k discounts then by the end of 2018 your car could lose 15k in resale value. Trade-in value is of course worse.

 

[youra6]

53K for a GT is just ridiculous to begin with. Even a fully spec 'd out one should cost no where near that much.

I'm guessing you paid way less than that though. I paid 5500 under MSRP for a base GT and even I'm beginning to wonder if I overpaid.

 

[AJ ROJO]

Of the three (Camaro, Charger and mustang) that I've owned the mustang is the one I've taken the biggest hit on in as far as resale or trade in. I think it is mostly because/due to the numbers of mustang out there. The market is saturated with mustangs so the value of even a slightly used mustang is crap.

 

[MaxHedrm]

53K for a GT is just ridiculous to begin with. Even a fully spec 'd out one should cost no where near that much.

I'm guessing you paid way less than that though. I paid 5500 under MSRP for a base GT and even I'm beginning to wonder if I overpaid.

Adjusted for inflation, the Mustang base price is only $5k more than a 1965 fastback. That's not bad considering what you are getting. Alas, they didn't have the GT pricing on the webpage I looked at...

https://www.cjponyparts.com/resources/mustang-prices-through-the-years

 

[Weasel1]

If you’re buying a non special edition (Shelby, etc) Mustang thinking its an investment rather than a toy, you’re mistaken.

 

[Spork3245]

If depreciation scares you, buying new is generally a bad idea.

 

[control4userguy]

^Right on

 

[HexaNerva]

Mustangs depreciate??? This is news to me.

 

[dogiebitt]

If you buy new and then expect to trade in within 1-2 years, you should look at lease deals.

 

[youra6]

If depreciation scares you, buying new American cars is generally a bad idea.

Most American cars just have terrible resale value. It's always been this way. I bought my 2012 WRX Hatch for $24,800 and after 2 years and 25K later, I traded it in for $22,500 right when Subaru announced the new body style. Of course the WRX is an exception, not a rule.

I plan on keeping my Mustang for a long time so I don't care too much about its resale value.

 

[Spork3245]

Most American cars just have terrible resale value. It's always been this way. I bought my 2012 WRX Hatch for $24,800 and after 2 years and 25K later, I traded it in for $22,500 right when Subaru announced the new body style. Of course the WRX is an exception, not a rule.

I plan on keeping my Mustang for a long time so I don't care too much about its resale value.

No. Large depreciation is not unique to American cars. Most German and British cars have terrible depreciation too... Especially British.

 

[1 old racer]

bottom line, this is normal.

 

[Bald Menace]

That's why they sell G.A.P insurance.

Sponsored