Depreciation

[dkmcclelland]

Am I the only one concerned with this? I bought my 2012 GT Premium with Brembo Package with 6,000 miles for 27,200 and a year later with 15,000 miles struggled to get $24,000. The guy I bought it from paid $34k (Stickered 37,980) We're talking over two years about 35% depreciation. Is this normal for a Mustang?

My current car, an 08 Civic Si I bought with 52,000 miles for exactly half of it's original sticker... I want another Mustang, but as much as I love the new body style and want one, I don't know if I shouldn't just wait until they're two years old and find a good one...


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[JoeDogInKC]

It's fairly normal in my experience, however, this is a somewhat unusual time. Dealers are trying to move any existing 2013/2014 models off of their lots to be ready for the 2015's. Coupled with bigger incentives from Ford, they are marking these models down a LOT, which obviously lowers the value of the ones that some of us already drive. I paid $37k or so for my 2013 GT 400A in May of 2012 and I'll be lucky to get $25k out of it when I go to trade it in with only 15k miles.

 

[dkmcclelland]

It's fairly normal in my experience, however, this is a somewhat unusual time. Dealers are trying to move any existing 2013/2014 models off of their lots to be ready for the 2015's. Coupled with bigger incentives from Ford, they are marking these models down a LOT, which obviously lowers the value of the ones that some of us already drive. I paid $37k or so for my 2013 GT 400A in May of 2012 and I'll be lucky to get $25k out of it when I go to trade it in with only 15k miles.

If I decide to get a 2013, which I really am thinking about it, I should post a topic on here before you guys all go trading in!! What's your GT's specs?


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[derieuz]

Unless you are the type of person to just sell a car every year for the newest thing, then you shouldnt worry. If this is the case, leasing is meant for you.

 

[dkmcclelland]

Unless you are the type of person to just sell a car every year for the newest thing, then you shouldnt worry. If this is the case, leasing is meant for you.

In the past, I've never kept a car more than 2 years... Long story short, I graduated as an RN last May and wanted a Mustang, so I went and flew to Kallamazoo, MI and got that GT. 9 months later started reworking budgets and such and decided it needed to go for a year or two and I can rework other things pay them off and build up more savings...

So basically, now I'm beginning to be into position to want a Mustang, and planned on getting a used 2013 for 25-28k but now the 2015 has me hooked... I just don't want the EcoBoost, I want the power, torque, and the sound of that hellacious Coyote back under my right foot...


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[Tony Alonso]

When I bought my 2003 Mach 1 in December, 2002, I paid MSRP on what was thought to be a fairly limited run. About 6 months later, the 2004 Mach 1s were being built, and shortly therafter, incentives were being put on them to get ready for the 2005 Mustang. So a car can go from hero to zero in a pretty short time, depending on market conditions.

Also, as I am sure you know, trading in a car can net a lower price, especially when considering other influences like what region of the country you are located, the season, general state of car sales, etc. I generally have counted on Mustangs depreciating about 30% in the first 2 years, then leveling off some by years 4 and 5 to wind up at about 60-65% depreciated.

Right now, I am looking at a similar situation, as I am preparing to trade my 2010 GT Premium that will be 5 calendar years old in December. I am expecting to get about 40% of the original sticker. By the way, that 2003 Mach 1, had I held on to it, would like be going up a bit in value, based on what I've seen people buying over on the Mach 1 Registry.

I am prepared to make this purchase now rather than wait because a) this will be THE 50th anniversary year, b) I want the upgraded driving experience of the new suspension, and c) I have a hopeless inability to find a cheaper hobby. While I could "upgrade" in the powertrain department with an awesome sterling grey GT I've seen at the dealership where I've ordered, it would be too similar of an experience for me, despite the price difference.

These decisions are so much a personal value judgment because this is an emotional car!

 

[dkmcclelland]

When I bought my 2003 Mach 1 in December, 2002, I paid MSRP on what was thought to be a fairly limited run. About 6 months later, the 2004 Mach 1s were being built, and shortly therafter, incentives were being put on them to get ready for the 2005 Mustang. So a car can go from hero to zero in a pretty short time, depending on market conditions.

Also, as I am sure you know, trading in a car can net a lower price, especially when considering other influences like what region of the country you are located, the season, general state of car sales, etc.

I generally have counted on Mustangs depreciating about 30% in the first 2 years, then leveling off some by year 4.

Right now, I am looking at a similar situation, as I am preparing to trade my 2010 GT Premium that will be 5 calendar years old in December. I am expecting to get about 40% of the original sticker.

By the way, that 2003 Mach 1, had I held on to it, would like be going up a bit in value, based on what I've seen people buying over on the Mach 1 Registry.

I am prepared to make this purchase now rather than wait because a) this will be THE 50th anniversary year, b) I want the upgraded driving experience of the new suspension, and c) I have a hopeless inability to find a cheaper hobby.

While I could "upgrade" in the powertrain department with an awesome sterling grey GT I've seen at the dealership where I've ordered, it would be too similar of an experience for me, despite the price difference.

These decisions are so much a personal value judgment because this is an emotional car!

I feel the exact same way... I've never owned a new vehicle, only used, and with x-plan and such I won't pay MSRP, but it's just a matter of how much can I afford... Being fresh out of college and 24 years old, do I really need to sign up for a $35k car? No, but I don't have anything else I would enjoy as much as driving a new Mustang


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[wjones14]

My current car, an 08 Civic Si I bought with 52,000 miles for exactly half of it's original sticker...

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Oddly enough, a 2008 Mustang GT Premium had an MSRP of $28,000, and in good condition now with 50,000 miles is worth... about $18,000. At least that's going by Kelley Blue Book for Private Party sale...

In any case, your Civic depreciated more than a Mustang, considering the same year Mustang should be worth more than 50% of its original MSRP.

 

[JoeDogInKC]

If I decide to get a 2013, which I really am thinking about it, I should post a topic on here before you guys all go trading in!! What's your GT's specs?


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2013 400A GT - Grabber Blue.
Auto Trans.
Optional 18" polished aluminum wheels.
Airraid CAI.
Complete Eibach Pro-plus suspension replacement.
Flowmaster Comp. series cat-back exhaust.
Just a smidgeon over 15k miles.

Never been tracked, just some "spirited" driving around town and on the highway.

 

[tbonez3858]

I've thought a lot about this same thing and for me and my own personal decision I've made a choice to purchase. I almost never do anything "stupid" with money.

I make a decent living wage, have very few bills and I'm going to make a dumb decision with the Mustang that won't impact those around me. I have retirement and savings and at some point I'm going to look back and regret not "living" a little. For all I know I have cancer right now....

Note...If you are young and don't have your stuff straight I highly recommend staying away from depreciating assets.

 

[5.0mg]

Yeah I got my car for slightly less than x plan and put nada down (dumb) and still paid well over 30 for it gt premium brembo '12 like the one you described and I owe just under 19 on it and I'll be very lucky to get 24 for it with 20k miles. Altho it does have a few scratched from a shopping cart and random rocks on the highway. I'll most likely sell her private party as it seems like some people prefer the front ends on the 11-12s rather than the 13-14 and visa versa there is already a decent buying market popping up as the "coyote " has earned some street cred so to speak

 

[derieuz]

Any new car will depreciate, its the fact that from 50 miles to 20,000, you exponentially lose a ton of value out of your car, from 20-50,000, it starts to level off, past 50 it starts to lower more drastically again, it all depends, do you want the extended warranties and assurance that the car won't break or do you want to take a risk on a used vehicle for cheaper.

 

[Red Turtle]

That is average depreciation and looks like you drove the car for a year at the cost of $3200. Not bad in my opinion. After the three year mark, they tend to level off depending on condition and miles.

The average depreciation for 3yrs is about 50% +/- depending on condition and miles.

 

[Honesty]

Mustangs have always depreciated exceptionally poorly. If re-sale is a concern, either don't buy one or buy a Mustang used. Even my grandfather knows about horrendous depreciation.

 

[L8APEX]

Am I the only one concerned with this? I bought my 2012 GT Premium with Brembo Package with 6,000 miles for 27,200 and a year later with 15,000 miles struggled to get $24,000. The guy I bought it from paid $34k (Stickered 37,980) We're talking over two years about 35% depreciation. Is this normal for a Mustang?

Lots of incentives on the mustang drove down the resale value.

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