Depreciation

[Reg_2015]

Reg, looking forward to see what you are getting The only time I've ever come out financially ahead on a Mustang is when I bought AutoArt's 2003 Mach 1 1:18 diecast in azure blue Beyond that, it's been more about the passion.

I will say, however, the most recent Boss 302s are an example of limited depreciation. Based on various forums posts for what people are selling them, that particular version seems to be doing quite well. The 2012s that sold for $43,000 US new are still going for $35,000-$38,000, which is not typical of the mainstream models.

I unfortunately, tend to think more with my heart than my wallet. I gave my GT350 to my oldest friend when I moved to Europe and if I ever mover back to the States, I'll more than likely give my 2015 to someone close to me. And of course, I'll be getting a Mustang once back home.

Otherwise, I have NO intention of selling my 'European' baby once I get her. After all, it only took me (or will take me) two years to get her (without going off topic and as I mentioned in another thread; if you think you guys back in the States have it bad! you have no idea what we're going through here!), and even on 'general' release of this model to the world, the rarity of the 2015 will and should ensure that, at least in Europe, the depreciation is kept to a maximum low.... (at least, that is my wish! I would rather be the only one in my borough with a Mustang):hail:

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[buRNout]

I'm a similar age and in a similar situation... but still haven't managed to talk myself out of it. :shrug:

Yeah, same here. I am 24 and get a migraine when I think about spending $37k. I do really well but have a wife, a mortgage and just had a pretty expensive surgery. I can afford it for sure, it won't be a struggle, but I am not nearly as quick to drop that cash as I was 3 years ago. That said, I still have not managed to talk myself out of the purchase. I really really really don't want to spend the money but here I am oogling over every detail of this site. I have been able to hold off ordering do far because no numbers have been released but it has been extremely hard.

 

[Mustangchief]

All of this talk of depreciation is nonsense. A car, unless you use it for business is a consumable, just like beer and toilet paper. They fact that you can sell it used for some money to upgrade is just a bonus. I like beer and shell out an average of $100 bucks a month on Becks Sapphire. It's a luxury and I don't even get a deposit for the bottles. I know people who spend $50 a week on cigarettes, $2400 up in smoke. Look at other things you buy like fast food, bottled water, cable, cell phones. You get nothing in return except use, but nobody talks about that. I look at my cars as things I don't need, but really want. I have no expectation of resale. If I get resale value wahoo! I typically run a car until I'm tired of it and then pass it on to a relative who wants to get some use out of it. My Mustangs are the only exception, although I did tell my 16 year old niece if she could talk her Dad into it, she could have my 02GT Drop Top for her Birthday. He said no way, insurance was too much, but I did let her drive it while I was vacationing nearby. She took plenty of pictures for her facebook and was very happy. That's what owning a mustang is about, pleasure everyday.

 

[fionic]

A car, unless you use it for business, is a consumable

ftfy

 

[Mustangchief]

Let me break something down for you guys who think 40K is a lot of money.
Cable $133 ( I rarely watch TV, but it is tied to internet)
Family Cell phones with data $250
Friday night eat out (date night) $200+ a month
Beer $100 a month
Ipad Data $40 monthly
Pool Chemicals ($50)

That's right 733 dollars on junk I can do without. $43,980 over 5 years. A brand spanking new Mustang GT with PP.

I have many more luxury items I can do without also, but I just wanted to illustrate when you look at what you pay for things, getting a car isn't that bad of a deal. Of course if you are only bringing home $18K a year, then you might want to focus on a focus.

 

[fionic]

Of course if you are only bringing home $18K a year, then you might want to focus on a focus.

:clap2:

 

[likeaboss]

Really ? I see them doing pretty well in the New England area. My 2013 BOSS after nearly 2 years has gone down about 10-12% according to KBB. Of course, mine is perfect, low miles and not modified.

My experience with cars is that the most highly desirable special models do a little better in resale for the first several years. I'm thinking recent GT-R, M3 and even the WRX when it first came out. Once the new, higher performing model arrives, depreciation really hits hard.

Buy what you want and enjoy. If finances and depreciation are a huge concern, you will never win with a car (except a Ford GT).

Well the GT500 holds it's value well if you have a base car. It seems the options aren't holding much value. The Boss has been holding it's value really well.

 

[Tony Alonso]

Otherwise, I have NO intention of selling my 'European' baby once I get her. After all, it only took me (or will take me) two years to get her (without going off topic and as I mentioned in another thread; if you think you guys back in the States have it bad! you have no idea what we're going through here!), and even on 'general' release of this model to the world, the rarity of the 2015 will and should ensure that, at least in Europe, the depreciation is kept to a maximum low.... (at least, that is my wish! I would rather be the only one in my borough with a Mustang):hail:

Hopefully you will see yours sooner rather than later, and I will be most curious to see what the depreciation curve will be in the new markets.

 

[scottpe]

All of this talk of depreciation is nonsense. A car, unless you use it for business is a consumable, just like beer and toilet paper. They fact that you can sell it used for some money to upgrade is just a bonus.

I agree with prior sentiments that a car like the Mustang should be viewed more as an emotional investment and an entertainment expense as much as anything. Anyone that tries to analyze the purchase from a numbers or 'investment' perspective will be sorely disappointed.

My 2012 only has 8,500 miles on it. From a financial standpoint, I'd be really smart to just keep it. I could drive it for another 10 years easily, but the 2015 is just too compelling for me to ignore. Thus I am willing to take the depreciation hit all over again. It's purely because of the emotional check boxes that Mustangs tick for me that I'm willing to do that, as it definitely doesn't make much sense otherwise.

Mustangs transcend normal transportation... ;)

 

[Mustangchief]

Part of me wants to find a decent new age that I can pay cash for and just deal with not having the power the newer ones have while still enjoying the sound


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Unless you are rolling in hoards of cash, paying cash for a car is just plain stupid IMO, same with big down payments. Unless you have to because you can't get a 4% or lower rate. If it took you 5 years to save 40K in cash, you wasted many many dollars. If you don't know how to invest, learn. Now, if you are just going to buy the latest gadgets with that down payment/cash for a car, go ahead and put it on the car. Here is something to ponder, if you took your $10K down payment in Feb 2009 and bought Ford stock as well as a 2010 Shelby GT500 at 4% for 5yrs. In 2 yrs, your down payment would be worth $113,750.00 On your car note, you would have paid $21,600 and still owed about $40k on the car. If you paid the down payment, you would have spent roughly $19,200 on payments and owed 31500 on the car. Investing the down payment obviously only works if you invest smartly.

If you don't know how investing works, put your money in the car. There are more shady investors than shady car salesmen. Like car salesmen, you need to be educated or you can kiss your hard earned money good-bye

 

[Wild Stang]

Let me break something down for you guys who think 40K is a lot of money.
Cable $133 ( I rarely watch TV, but it is tied to internet)
Family Cell phones with data $250
Friday night eat out (date night) $200+ a month
Beer $100 a month
Ipad Data $40 monthly
Pool Chemicals ($50)

That's right 733 dollars on junk I can do without. $43,980 over 5 years. A brand spanking new Mustang GT with PP.

I have many more luxury items I can do without also, but I just wanted to illustrate when you look at what you pay for things, getting a car isn't that bad of a deal. Of course if you are only bringing home $18K a year, then you might want to focus on a focus.

Dave, it helps me feel better when you break it down for us and give some comparisons.

If it's your daily driver then it's something you'll enjoy every day, making it worth more, in my opinion, than some other things you could dump your money on.

 

[Wild Stang]

Yeah, same here. I am 24 and get a migraine when I think about spending $37k. I do really well but have a wife, a mortgage and just had a pretty expensive surgery. I can afford it for sure, it won't be a struggle, but I am not nearly as quick to drop that cash as I was 3 years ago. That said, I still have not managed to talk myself out of the purchase. I really really really don't want to spend the money but here I am oogling over every detail of this site. I have been able to hold off ordering do far because no numbers have been released but it has been extremely hard.

Wow, a lot of stuff going on there. I don't own a house yet... which is why I'm sort of hesitating on whether I should be using this money I've saved on a down payment for a house or to fund the Mustang purchase. Obviously one of those will hold its value better and I don't want to be renting an apartment forever. I also don't know a thing about investing unfortunately.

 

[buRNout]

Wow, a lot of stuff going on there. I don't own a house yet... which is why I'm sort of hesitating on whether I should be using this money I've saved on a down payment for a house or to fund the Mustang purchase. Obviously one of those will hold its value better and I don't want to be renting an apartment forever. I also don't know a thing about investing unfortunately.

Same here. I know nothing about investing. The only two investment ventures I have made were supposedly buddy buddy deals that I was "lucky" to get in on and all that crap then still ended up getting screwed. My problem is I drive 60,000 - 70,000 miles a year with work so I have to put down a huge payment and take a short term loan to keep from getting extremely upside-down. I trade usually every year. I get paid mileage so that helps but only so much.

 

[Reg_2015]

Wow, a lot of stuff going on there. I don't own a house yet... which is why I'm sort of hesitating on whether I should be using this money I've saved on a down payment for a house or to fund the Mustang purchase. Obviously one of those will hold its value better and I don't want to be renting an apartment forever. I also don't know a thing about investing unfortunately.

Hi there.... At the risk of getting off topic and incurring the wrath of the Moderator, let me just quickly put my ten cents in and say that as a property owner, it is still one of the few viable, long-term and secured investment that a person could make in this current climate and economical uncertainty. Not without it's risks but the fluctuations are variable. The value goes down, like now and then they go up (sorry about my wording; I like to keep things simple). Cars on the other hand, for most sane people are a necessity, from A to B..... For the NOT sane individuals, like myself and most of the others in the forum (and maybe you), it's all about the LOVE (and yes! I'm using that tone to describe that word; as many can imagine) and the feeling that we get when we see that Mustang on our driveway. You COULD buy a second-hand car; you could walk and use public transportation; but EVERYTIME I got behind the wheel of a Pony car, I just smiled like an idiot. Can't seem to recall any other vehicles other than a Main battle tank doing that to me.

If you ever get that feeling, then depreciation doesn't/wouldn't matter. And if you are very uncertain about buying a brand new Mustang right now, then as you might have been reading, the value of the previous models, maybe up to the current SHELBY GT500, is getting lower as each day gets closer to the release of the 2015.....

Someone please tell me to shut-up...spouting off again! Sorry:headbonk:

 

[Wild Stang]

Hi there.... At the risk of getting off topic and incurring the wrath of the Moderator, let me just quickly put my ten cents in and say that as a property owner, it is still one of the few viable, long-term and secured investment that a person could make in this current climate and economical uncertainty. Not without it's risks but the fluctuations are variable. The value goes down, like now and then they go up (sorry about my wording; I like to keep things simple). Cars on the other hand, for most sane people are a necessity, from A to B..... For the NOT sane individuals, like myself and most of the others in the forum (and maybe you), it's all about the LOVE (and yes! I'm using that tone to describe that word; as many can imagine) and the feeling that we get when we see that Mustang on our driveway. You COULD buy a second-hand car; you could walk and use public transportation; but EVERYTIME I got behind the wheel of a Pony car, I just smiled like an idiot. Can't seem to recall any other vehicles other than a Main battle tank doing that to me.

If you ever get that feeling, then depreciation doesn't/wouldn't matter. And if you are very uncertain about buying a brand new Mustang right now, then as you might have been reading, the value of the previous models, maybe up to the current SHELBY GT500, is getting lower as each day gets closer to the release of the 2015.....

Someone please tell me to shut-up...spouting off again! Sorry:headbonk:

Thanks for your ten cents (wow, inflation :().

It's pretty hard for me to pass up the 50th anniversary of a car my dad and I have obsessed over our entire lives just because it's not the best place to put my money :ford:.

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