Market ripple effect created by S550

[Fulcrum]

Since a lot of the threads are based on speculations and estimations, let us now discuss the potential market effects of the s550 release.

For example I was watching manheim & other big auctions and completed(meaning actual exchange in funds) listings on ebay with the release of the c7 vette.

No surprise here, I observed the prices of my fairly small sample size of c6 vettes sold (~500 vettes since release of c7), average price decline of the c6 (accounted for mileage and year difference) was ~18% (much higher for higher trim cars and z06 variants)

Now let us speculate on how the s550 will shake the current car market, honestly I think the release of this new design will slam the used sports car market pretty hard, meaning a lot of trades/sales will most likely flood the market with good low mileage vehicles. Since ford is aiming pretty high in the sports car world, and based on what we currently know about the car it's pretty safe to say the new mustang will be a competitive icon in the currently crowded sports coupe market.:ford:

With that said I think the prices on anything recent (i.e. 11-14 stangs, 370z's, genesis coupes, g37s, 135/335i's, g37's, maros etc etc) and any other 'affordable' rwd coupe will decline (taking a pretty solid hit), creating a great buyers market for used and new cars alike.

TL; DR The s550 is going to shake up the used/new car market pretty hard and create a buyers market for used/new cars.
Post your 2 cent opinion on what you think will take the biggest hist.

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[WestRace]

370z's, genesis coupes, g37s, 135/335i's, g37's, maros

These are being sold at already affordable prices so I don't think you'll see much change. But high end brands such as Porsche, BMW may see higher depreciation. The new generation of American sport cars are getting better and better. I can see in the near horizon with cars such as ATS-V, ATS based Camaro, C7 Corvette, Mustang, Acura NSX (made in US) will steal quite a bit of shares form those from Germany. If properly tuned, the new Mustang GT should be very competitive to the new M3/M4. The Mustang should have the hp advantage if weighs a bit more. I might even argue that the ligher, less unsprung weight Mustang rear suspension is a bit better than the M3/4, though the M3/4 may have lower center of gravity and a bit lighter. So it will be close.

I think Ford has learned the fine art of car tuning and it is just as good as the BMW. The Mustang has to start from 26K while the M3/4 doesn't. That may compromise the Mustang chassis a bit.

 

[Fulcrum]

These are being sold at already affordable prices so I don't think you'll see much change. But high end brands such as Porsche, BMW may see higher depreciation. The new generation of American sport cars are getting better and better. I can see in the near horizon with cars such as ATS-V, ATS based Camaro, C7 Corvette, Mustang, Acura NSX (made in US) will steal quite a bit of shares form those from Germany. If properly tuned, the new Mustang GT should be very competitive to the new M3/M4. The Mustang should have the hp advantage if weighs a bit more. I might even argue that the ligher, less unsprung weight Mustang rear suspension is a bit better than the M3/4, though the M3/4 may have lower center of gravity and a bit lighter. So it will be close.

I think Ford has learned the fine art of car tuning and it is just as good as the BMW. The Mustang has to start from 26K while the M3/4 doesn't. That may compromise the Mustang chassis a bit.

Makes sense and I agree with the market share shift, however I still think that even the already currently affordable rwd sport coupes will see a big price drop (at least on the used market they will), the used sports coupe market is already flooded, with the addition of the new mustang and everyone will want to jump on the new platform no doubt, I can already picture as much as 10-15% price drop on used sport coupes.

 

[eurospeed]

Both of you make very good points. Ford is at a tremendous advantage when simply looking at the shear volume of vehicles where they can leverage those sales numbers and squeeze suppliers. This is likely why Ford can make a $26K sports car and BMW cannot.

The other piece of the puzzle is of course the engineering and Ford (IMO) really started to transform in early 2000 starting with the Focus to better compete in the European market. With greatly improved engineering and market share advantage, I would definitely agree the new Mustang will be taking a sizable bite into the sports car segment (including the more exclusive brands).

 

[WestRace]

Makes sense and I agree with the market share shift, however I still think that even the already currently affordable rwd sport coupes will see a big price drop (at least on the used market they will), the used sports coupe market is already flooded, with the addition of the new mustang and everyone will want to jump on the new platform no doubt, I can already picture as much as 10-15% price drop on used sport coupes.

It will also depend on how good the Mustang will be. The next Camaro based on the ATS should be very good too if they don't it look too hideous .

 

[yanks1]

I think like any new exciting model, the prior generation drops in value as trade-ins & private sales flood the used car market. Watch what happens to the C6 Vettes value now that the hot C7 Vette is available. Same will most likely happen in the Mustang world later this year into Spring of 2015.

 

[Fulcrum]

I think like any new exciting model, the prior generation drops in value as trade-ins & private sales flood the used car market. Watch what happens to the C6 Vettes value now that the hot C7 Vette is available. Same will most likely happen in the Mustang world later this year into Spring if 2015.

Yeah that's exactly what I've been observing with the c6/c7, kind of sucks for the people who just bought or will buy a 2014.

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