Depreciation

[Manders Mustang]

Ha, would be ideal, i think people more concerned with how much cash there going to lose will know the Focus rs is a good cash holder, everytime you used to pass a car show room they were selling for early £20k's 4 and 5 year old!

We'll see, until cars start going used on sale, we'll never know.

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[Mustang1878]

Yeah and when you see some of them on ebay and other car websites via the likes of autotrader at £45k its encouraging

 

[Artill]

I cant say the depreciation worries me, not until i am thinking of selling anyway, but i tend to keep cars i like longer than average. 10 years ago i bought a new Monaro. It was£25k. after 3 years it was probably worth about £9k. But i didnt sell, its sitting in my garage, and not worth much less that it was when it was 3. If you are worried about depreciation, just keep your Mustang longer. I doubt that will be any great hardship.

 

[jord79]

I cant say the depreciation worries me, not until i am thinking of selling anyway, but i tend to keep cars i like longer than average. 10 years ago i bought a new Monaro. It was£25k. after 3 years it was probably worth about £9k. But i didnt sell, its sitting in my garage, and not worth much less that it was when it was 3. If you are worried about depreciation, just keep your Mustang longer. I doubt that will be any great hardship.

£25k for a new Monaro! I think the equivalent VXR8 is around double that now if not more. If the price of a new 'stang goes the same way, residuals should be good.

 

[Lone Survivor]

Can someone explain to my why people think these cars will depreciate like a rock? I have never really understood why this sort of thing happens

I'm not too worried even though the thought of losing a lot of money is quite scary

Jim, you've been reading too much from 'naysayers' over on the 350 forum :lol:

Most of them are closet beemer lovers.

 

[Jimboy2]

Jim, you've been reading too much from 'naysayers' over on the 350 forum :lol:

Most of them are closet beemer lovers.

Your right mate. It's there I read it, and for some reason they got into my head!

I really don't care anymore. It's probably not going to be my finest financial decision I will ever make but it will be fun!

 

[Ian Magnetic]

You wouldn`t buy any car new if you worried about depreciation, but in my experience if you keep it long enough and divide the loss by the number of years it`s not nearly as bad
Hey it`s only money and you can`t take it with you !

 

[Wobs]

Pound for pound they won't hold the value as much as German cars and as numbers of right hand drive cars increase, then the value will decrease, but they will stabilise. I puchased my Holden (VXR8) nearly four years ago, and they are still selling for around the same price today.

I appreciate though, there will obviously be larger quantities of Mustangs around in years to come, and they won't be as rare.

 

[tooley]

depreciation isn't the point. Buy it, use it, enjoy it. write the cash off as soon as you spend it and don't worry about depreciation. All cars depreciate like a stone, it's not an investment, it's a thing of beauty and power and like all beauty it's transient. Enjoy it while you've got it but don't expect it to be your pension.

here endeth the lesson

 

[deep south]

Depreciation is a funny thing - and yes, you lose a lot as soon as you drive the car away from the dealer. But there are 2 aspects to consider; one is the percentage, and the second is actual amount. Let's say a BMW whatever loses 40% over 3 years, and the mustang 50% - that obviously means the BMW is a "better car".... or does it?

But look at the possible values:
BMW for (say) 60K, loses 40% (24K) has a value of 36K
Mustang for 35K, loses 50% (17.5K) has a value of 17.5K

What no one knows is what the actual depreciation will be for the mustang - at the moment, the supply is constrained, so that will tend to keep values higher. Will that continue in 3 years time - who knows?

The mustang is a car you buy with your heart... what value can you put on that?

 

[Eclipsar]

Depreciation is a funny thing - and yes, you lose a lot as soon as you drive the car away from the dealer. But there are 2 aspects to consider; one is the percentage, and the second is actual amount. Let's say a BMW whatever loses 40% over 3 years, and the mustang 50% - that obviously means the BMW is a "better car".... or does it?

But look at the possible values:
BMW for (say) 60K, loses 40% (24K) has a value of 36K
Mustang for 35K, loses 50% (17.5K) has a value of 17.5K

What no one knows is what the actual depreciation will be for the mustang - at the moment, the supply is constrained, so that will tend to keep values higher. Will that continue in 3 years time - who knows?

The mustang is a car you buy with your heart... what value can you put on that?

And if you carried that on further to say 5 years on the BMW you could of lost more than what the Mustang cost in the 1st place and there's no way the Mustangs is ever going to worth nothing

 

[Manders Mustang]

Depreciation is a funny thing - and yes, you lose a lot as soon as you drive the car away from the dealer. But there are 2 aspects to consider; one is the percentage, and the second is actual amount. Let's say a BMW whatever loses 40% over 3 years, and the mustang 50% - that obviously means the BMW is a "better car".... or does it?

But look at the possible values:
BMW for (say) 60K, loses 40% (24K) has a value of 36K
Mustang for 35K, loses 50% (17.5K) has a value of 17.5K

What no one knows is what the actual depreciation will be for the mustang - at the moment, the supply is constrained, so that will tend to keep values higher. Will that continue in 3 years time - who knows?

The mustang is a car you buy with your heart... what value can you put on that?

Also no beemer when it comes out peaks above RRP, Mustangs have bunny hopped their RRP in resale by 5-15k in some cases. AS most people view the car as more expensive than it's retail price, unless production speeds up, it should theoretically hold some more value.

 

[Ericc B]

These are niche segment cars with bad fuel economy. When you follow the official traders list value they do indeed depreciate like a rock for the simple reason that your average trader isn't interest in a car that has a very limited buyers market, no matter how cool it is.

Reality can be quite different. It all depends on where you try to trade it. A private sale will always bring a decent value because there are many people in the used market that would want such a car. However it will take a few years depreciation before they can afford it. A Ford Store will always be interested in trading in a relatively new Mustang because it's a great way to have such a car in their showroom without having to invest in a brand new one. If you trade it in at a BMW dealer they will give you crap for it because they will immediately sell it to a trader.

 

[Manders Mustang]

That being said, an Ecoboost doesn't have 'bad fuel economy' ;). So I should be a little better off on the aftermarket - should I ever choose, need to, or (if hell freezes over) want to resell. (I'd also always recommend private over trade in)

 

[Jury]

Frankly, the question of depreciation didn't enter my mind when deciding to purchase a Mustang.

This is the car you buy with your heart, not with your head.

for anyone seriously worried about depreciation, cost of maintenance, cost of fuel, MPG.... all that spreadsheet stuff..... you're not getting the point!

:eyebulge:

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