Another one down (EB to GT)

[berserker_sid]

Docs 1.5-2k? Don't know where you're shopping man. Hell, join the Mustang Club of America. X-Plan pricing means no dealer/doc fees (except gov't fees). In my state you only pay tax on the difference between trade and new purchase. I know it's different in some states, though.

Anyway, there's this pervasive myth that the second you drive a car off the lot, it suddenly loses all this value, just by virtue of you sitting your ass in it and taking it home. It's not true (unless the dealer bent you over pretty bad). Most of those studies are based on MSRP. Of COURSE the car isn't worth MSRP when you drive it off the lot -- it was never worth that to begin with, and if you paid sticker or close to, you got ripped off (GT350 buyers excepted, of course).

Now, over the course of a few years, yeah, you'll take a big depreciation hit. Especially if you're like me and you put boatloads of miles on your cars. But here's the thing, you're going to get depreciation *anyway* no matter what. If you drive any newish car, it's expensive.

When I went EB to GT, I had the EB for like two months. Trade in value was something like $1000 less than my purchase price (I'd have to go back and look to give you exact figures, but if anything, it was LESS than that, not more). And I got X-plan pricing on the and the waived doc fees that implies on the GT. I paid double on the state doc stamp fee (like $100). That was it.

Switching cost me about a grand.



I did the math, see above. Now, granted, I traded mine much sooner than you did, so that may have something to do with it. And I bought the EB in cash. I only had to finance the difference between EB and GT (came out to like $7000-ish if I remember correctly).

When buying, check all options. On the EB, I didn't go X-plan, because I negotiated a much lower price. On the GT, dealers didn't move as much, so X-Plan turned out to be better there. I used TrueCar to give me a baseline to start negotiating from, then emailed every dealership within about 200 miles with my specs and the car I desired. You pick some of the lower offers, and play them off each other until you get best deal. Takes some doing, but you won't get ripped.

Dystopic.. i agree with ya.. now let me give a latest math a day old.. my EB 2015 premium.. bought in 2014.. costed me 29847.
after 1 year 7 months. and 15000 miles.. recall not completed.. sold for 23k.
Now i got gt premium 401a auto.. for 34k and also roush side scoops along with that... so etchnically i did not loose money enjoyed my ride and moved to gt...

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[15wile]

You don't pay state tax on cars? You seem to want to leave out some expenses of car purchasing like tax and price paid with all expenses.

Oh, and on state tax, yes we pay state tax, but ONLY on the difference between trade and new. Since that was difficult for you to understand, I'll provide you with an example. If you trade in a car worth $10,000, and then buy a new car worth $15,000, you only pay tax on the $5000 difference. Since the bulk of the difference in our theoretical example would be the natural cost difference between EB and GT, you were going to pay most of that tax ANYWAY.

 

[Maggneto]

Dystopic.. i agree with ya.. now let me give a latest math a day old.. my EB 2015 premium.. bought in 2014.. costed me 29847.
after 1 year 7 months. and 15000 miles.. recall not completed.. sold for 23k.
Now i got gt premium 401a auto.. for 34k and also roush side scoops along with that... so etchnically i did not loose money enjoyed my ride and moved to gt...

That's not how it works guys. I am going to guess that accounting wasn't offered at your high school (along with English). :frusty:

 

[Kevin08]

Dystopic.. i agree with ya.. now let me give a latest math a day old.. my EB 2015 premium.. bought in 2014.. costed me 29847.
after 1 year 7 months. and 15000 miles.. recall not completed.. sold for 23k.
Now i got gt premium 401a auto.. for 34k and also roush side scoops along with that... so etchnically i did not loose money enjoyed my ride and moved to gt...

So you bought a car for $29,847 and sold it for $23,000 (that's a net loss of $6,847 - plus all of the taxes and fees), then bought a new car for $34,000 (on which you didn't have that extra $6,847 to use on payment) and somehow you didn't 'loose' money in the end?

Erm wat

 

[berserker_sid]

That's not how it works guys. I am going to guess that accounting wasn't offered at your high school (along with English). :frusty:

i know pretty well how accounting works. I know i am going to pay higher per month . But i did not loose money on my trade in.
If i had negative equity on my car, i would have never traded my Car until i would have positive equity.
Cost to own the car will also go up a bit, but i am willing for that.
Tech. its a increase of 100 dollars increased expenditure per month, but worth spending i would say yes.

Maggneto sir, is that good enough for you. Or you still want to come up in a forum and expect English punctuation rather than focusing what is being discussed.

Your are great member i am followed your posts, please shed some more light onto this.

i am software architect manager, i have my CA to calculate everything for me, to give me an estimation.

But any useful tips would be great for people who are at verge to get a GT but still have financial issues.

Thanks

 

[Maggneto]

Oh, and on state tax, yes we pay state tax, but ONLY on the difference between trade and new. Since that was difficult for you to understand, I'll provide you with an example. If you trade in a car worth $10,000, and then buy a new car worth $15,000, you only pay tax on the $5000 difference. Since the bulk of the difference in our theoretical example would be the natural cost difference between EB and GT, you were going to pay most of that tax ANYWAY.

Car buying expenses aside, here is an article that explains car depreciation for the majority of car owners.

http://www.edmunds.com/car-buying/how-fast-does-my-new-car-lose-value-infographic.html

 

[15wile]

That's not how it works guys. I am going to guess that accounting wasn't offered at your high school (along with English). :frusty:

I don't like agreeing with you, but certainly someone saying "I lost $7,000" then saying they agree with me that they didn't lose much money, is no help for me.

Anyway, if you're going to make the move, do it BEFORE depreciation eats you alive. Make the switch quick if it didn't work out, instead of waiting so long.

 

[berserker_sid]

So you bought a car for $29,847 and sold it for $23,000 (that's a net loss of $6,847 - plus all of the taxes and fees), then bought a new car for $34,000 (which you didn't have that extra $6,847 to use on payment) and somehow you didn't 'loose' money in the end?

Erm wat

My Bad let me elaborate on that.
1.My 29847 was including taxes .
2. Car is a depreciating asset, so when i got 23k on my trade in, i still made 3k that went into my new car, and 34892 is complete price.
3. i agree i lost some, but when i said ' loose' money it was into emphasis terms , that as per my calculation i am not loosing anything as nothing went out of my pocket per say.

 

[Maggneto]

i know pretty well how accounting works. I know i am going to pay higher per month . But i did not loose money on my trade in.
If i had negative equity on my car, i would have never traded my Car until i would have positive equity.
Cost to own the car will also go up a bit, but i am willing for that.
Tech. its a increase of 100 dollars increased expenditure per month, but worth spending i would say yes.

Maggneto sir, is that good enough for you. Or you still want to come up in a forum and expect English punctuation rather than focusing what is being discussed.

Your are great member i am followed your posts, please shed some more light onto this.

i am software architect manager, i have my CA to calculate everything for me, to give me an estimation.

But any useful tips would be great for people who are at verge to get a GT but still have financial issues.

Thanks

I try to add a little humor to take the edge off and sometimes it doesn't translate correctly. I am a Systems Software Engineer and a Mustang owner so we are on the same team. I am simply pointing out the cost of trading in a car from personal experience and my personal example showing exactly the cost of a trade and the cost of doing business. This has nothing to do with monthly payment. I am on my 3rd new car in 4 years and each time I trade in a car for a new car I am out around 4k because of depreciation and tax, title, docs, etc.. On the Mustang, the MSRP was 37k and NADA trade in is 27k after 8 months and 3k miles so the Mustang went down 10k already.

I gave a perfectly good example showing my math but have yet to see anyone else post any real numbers.

 

[berserker_sid]

I try to add a little humor to take the edge off and sometimes it doesn't translate correctly. I am a Systems Software Engineer and a Mustang owner so we are on the same team. I am simply pointing out the cost of trading in a car from personal experience and my personal example showing exactly the cost of a trade and the cost of doing business. This has nothing to do with monthly payment. I am on my 3rd new car in 4 years and each time I trade in a car for a new car I am out around 4k because of depreciation.

I gave a perfectly good example showing my math but have yet to see anyone else post any real numbers.

Naaa.. i understood your humour part. just because we are having prod issue so my message was litle rude.

My apologies.

and that depreciation thing, so right. Problem with being a techie is
1. We have an ich for new technology.
2. I am excited about android auto.
3.i am myself working on application which will be given to ford,i wont disclose what it does, but all android users will be really happy with that.

 

[15wile]

I gave a perfectly good example showing my math but have yet to see anyone else post any real numbers.

Well, now I had to go dig up my original thread. You owe me a beer for the effort.

EB (base, no options): Purchase price: $23,050. Most tax wiped out due to trade in. Dealer fee wiped out by residual trade-in equity (didn't use X-plan here, so still had to pay), so total cost w/small amount of tax was $24,400. OTD: $23,700. Paid cash.

GT (base, no options): Got $22,700 for Ecoboost trade-in. No dealer fees. Paid double on doc stamp fee ($140). Dealer fee wiped out by X-Plan. Only paid tax on difference. MSRP difference between EB base and GT base was $5,800. I financed $6,800.

So I drove around an EB for two months for the cost of $1,000 out of pocket.

 

[Maggneto]

Well, now I had to go dig up my original thread. You owe me a beer for the effort.

EB (base, no options): Purchase price: $23,050. Most tax wiped out due to trade in. Dealer fee wiped out by residual trade-in equity (didn't use X-plan here, so still had to pay), so total cost w/small amount of tax was $24,400. OTD: $23,700. Paid cash.

GT (base, no options): Got $22,700 for Ecoboost trade-in. No dealer fees. Paid double on doc stamp fee ($140). Dealer fee wiped out by X-Plan. Only paid tax on difference. MSRP difference between EB base and GT base was $5,800. I financed $6,800.

So I drove around an EB for two months for the cost of $1,000 out of pocket.

I guess that settles it. :cheers:

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