Lets Talk 2015 GT Depreciation

[Nick610s]

So what is a base '15 gt pp recaro esp w/5000 mi worth?

As much as someone is willing to pay for it. Kbb should let you know though.

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[Clarkson]

The s550 is no doubt a great and unique car thats popular around the world. But, as the number of s550 sold and the fact that modern cars filled with electronic devices are not built to last, I doubt it will hold value well as its just a mass production modern vehicle. As for the v8, when the regulation changes, the tax and other stuff might make only the rich to be able to afford to drive those.

 

[RitzGT]

For those of you who have had GT Mustang's in the past...

Case car: 2015 Mustang GT Premium/PP/Navigation/Recaros/Enhanced security/ 13K Miles

At what point do these cars break even in terms of equity, bought it brand new and average about 12K miles a year?

Is there a chance to gain positive equity on these cars at all minus the low mileage factor?

Positive equity on anything other than a very collectible car is a pipe dream. Any "equity" you might have is a total illusion. The car is going to be worth significantly less than what you paid for it. There's no sugar coating that. You're financing the loss you'll be taking. The longer you keep the car, the more you lose until things level off when the car gets 10+ years old. If you want to minimize this hit, buy cars that are 2-3 years old. Those have already taken a significant hit in value. It doesn't change the nature of the game, but saves you some of that "equity" that you would have otherwise pissed away.

I'm assuming what you really mean is "Have I paid the bank at a faster rate than I'm losing money so that there is enough "equity" in the car to cough up a down payment on another car?"

That, my friend, depends on the particulars of your financing and whether or not you can find someone to purchase the car at a high enough price. If a couple of grand one way or the other is going to change your life, it might be time to reassess your priorities. Everyone loves having a new car to drive around. Spending your retirement struggling to make ends meet and living on canned tuna....not so much.

Best,

 

[Khyber]

equity and a car in the same sentence lol.

 

[Excelerater]

American cars no matter what the model depreciate very fast

best thing you can do is get your best deal because soon as you drive out your down 5Grand

 

[Lowrider]

Positive equity on anything other than a very collectible car is a pipe dream. Any "equity" you might have is a total illusion. The car is going to be worth significantly less than what you paid for it. There's no sugar coating that. You're financing the loss you'll be taking. The longer you keep the car, the more you lose until things level off when the car gets 10+ years old. If you want to minimize this hit, buy cars that are 2-3 years old. Those have already taken a significant hit in value. It doesn't change the nature of the game, but saves you some of that "equity" that you would have otherwise pissed away.

I'm assuming what you really mean is "Have I paid the bank at a faster rate than I'm losing money so that there is enough "equity" in the car to cough up a down payment on another car?"

That, my friend, depends on the particulars of your financing and whether or not you can find someone to purchase the car at a high enough price. If a couple of grand one way or the other is going to change your life, it might be time to reassess your priorities. Everyone loves having a new car to drive around. Spending your retirement struggling to make ends meet and living on canned tuna....not so much.

Best,

In simple terms equity means the difference between what you owe on the car loan and the current car value. It can be positive, negative or breakeven. And i think it only applies to the majority that are financing.

I've never had negative equity at trade in. But when you say 10 years plus to level up on equity, that's a joke....

 

[Kong76]

You can have positive equity in a car. Several things apply though. How much did you get the car for, how much down payment did you have, what is your finance apr, how much demand vs supply for that vehicle.

You can slow the depreciation after the initial hit by mileage. Average when I sold cars was for every 10k your under it was an increase of $650-800. Rule of thumb is if you put down enough to cover the taxes and the drive off depreciation you should be in decent shape as far as any negative or roll over in the future assuming you dont exceed annual mileage.

 

[Shouldhavegotthegt]

It doesn't seem like anyone is arguing that positive equity doesn't exist. Of course it does. Nit everyone is going to end up upside down on these cars. No one is making any money off of them though. They are not appreciating in value. They are just spiraling downward. Even if you paid cash for the car, that always puts you in a positive equity position, you are taking a hit when you sell it.

 

[Kong76]

It doesn't seem like anyone is arguing that positive equity doesn't exist. Of course it does. Nit everyone is going to end up upside down on these cars. No one is making any money off of them though. They are not appreciating in value. They are just spiraling downward. Even if you paid cash for the car, that always puts you in a positive equity position, you are taking a hit when you sell it.

A post a few above stated positive equity on anything other than a collector is a dream. I would assume that is an argument. I agree with you though that no one is going to make any money( more than they paid) unless they just totally screw up the next gen or completely axe the model all together.

I did however in my last trade in as stated make $300 more than what I paid for it.

 

[RitzGT]

A post a few above stated positive equity on anything other than a collector is a dream. I would assume that is an argument. I agree with you though that no one is going to make any money( more than they paid) unless they just totally screw up the next gen or completely axe the model all together.

I did however in my last trade in as stated make $300 more than what I paid for it.

My point was/is that a car is a depreciating asset. With vanishingly few exceptions, it is always worth significantly less when you sell it than when you bought it. In short...an extremely poor investment. The pipe dream of "positive equity" is simply the borrower putting up enough cash up front or paying the bank principal+interest at a faster rate than the car loses value so that when it is sold there is some cash left over. While that might give the appearance of treading water, you're still sinking.

On average, cars lose about 60 percent of their value over the first 5 years. So instead of tying that money up in an asset that's guaranteed to be a poor investment, my advice would be to buy something you can afford, pay cash for it, and sock those "car payments" away into something that grows in value. Of course, that doesn't fit in well with the "leverage yourself to the hilt and live paycheck to paycheck" until you are forced to declare bankruptcy mantra. Sigh...

Best,

 

[Kong76]

Now you are starting to sound like Dave Ramsey Ritz. I hear ya.

 

[RitzGT]

Now you are starting to sound like Dave Ramsey Ritz. I hear ya.

Ha. Sadly, it's the people who are the most vulnerable and the least able to afford the hit that succumb to the paycheck to paycheck car loan thing. Those same folks could suck it up and get a Fiesta for a couple of years and then come at the problem from a position of strength.

Best,

 

[Built4Speed]

Positive equity on anything other than a very collectible car is a pipe dream. Any "equity" you might have is a total illusion. The car is going to be worth significantly less than what you paid for it. There's no sugar coating that. You're financing the loss you'll be taking. The longer you keep the car, the more you lose until things level off when the car gets 10+ years old. If you want to minimize this hit, buy cars that are 2-3 years old. Those have already taken a significant hit in value. It doesn't change the nature of the game, but saves you some of that "equity" that you would have otherwise pissed away.

I'm assuming what you really mean is "Have I paid the bank at a faster rate than I'm losing money so that there is enough "equity" in the car to cough up a down payment on another car?"

That, my friend, depends on the particulars of your financing and whether or not you can find someone to purchase the car at a high enough price. If a couple of grand one way or the other is going to change your life, it might be time to reassess your priorities. Everyone loves having a new car to drive around. Spending your retirement struggling to make ends meet and living on canned tuna....not so much.

Best,

Well said! :clap2:

Equity = current market value - loan balance

 

[15Pony]

The value may go up once Ford discontinues naturally-aspirated V8s in the 20s. (2020s, that is) and the numbers of them on the road decline. A lot of people would want to get hold of one of these old-school rear drivers (at least that what they'll be in about 10 years).

 

[Mt-82 whine]

The value may go up once Ford discontinues naturally-aspirated V8s in the 20s. (2020s, that is) and the numbers of them on the road decline. A lot of people would want to get hold of one of these old-school rear drivers (at least that what they'll be in about 10 years).

If that happens, and I doubt it will, we would be talking about a car that bottomed out at 6-8k, stabilized, and maybe gained a few hundred bucks. Much like a c5z. Any original buyer or even a buyer that got one used 3-4 years old is losing money.

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