Question about Trade In Value / Depreciation

[jvivlemore]

Hi Everyone,

My 2015 Ecoboost is at 29,500 miles. Assuming we have a number of financial pros or experienced buyers in here that could help me with something. I regret not buying a Premium so am considering trading due to that and a few other factors. The problem is I'm still upside down on this car currently so trying to determine if I hold out the 2-3 years it will take before I break even OR take the hit now and trade early for something with the options I want. This scares me though because it's making a bad problem worse. The only thing I thought of was waiting for a great lease deal to pop up where I could get rid of the negative in the 3 year deal and then either finance the remaining part of the car after lease or get a new one for much lower of a payment.

#1) Does anyone have experience with when cars typically take their biggest depreciation? I drive 12,000-15,000 miles at most per year currently if that helps.

#2) I've heard that when the 2018 comes out it will affect the current bodystyle. Will this be a big hit or barely noticeable?

#3) Another option is upgrade the car to Premium features (mainly the bezel and SYNC) but I'm assuming this will cost me at least half of the negative I currently have so not sure it's worth it plus I'll be missing all the other features. Thoughts?

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[chipmaker]

Have a dealer run the numbers, Ford is hurting, my local dealers are stocked to the gills with Mustangs. I got a great deal on my 17 2 months ago. Of course, they may not want you car, dealerships I have talked to want loaded up, low mile cars. You are driving the crap out of your car. I traded a low mile(4 YO w/ 30 k miles), very loaded 4x4 RAM crew cab. They didn't even drive it. I probably answered none of your questions...

 

[jvivlemore]

Honda offered me $19,000. Toyota offered me $18,000. Ford offered me $16,000 and I was considering a lease on a Focus or Fusion with them too. I never asked about the Mustang though when we were chatting though. I was told that the non-Premium Ecoboost models have flooded the market due to being rental cars so trade in values are down because of that. Seemed like a weird answer but I don't have a relationship with anyone at this place so didn't push the issue or ask more. I just said "alright, thanks" and left. I owe around $23,500 still. I owned a 2013 Dodge Dart with issues and wasn't eligible to Lemon due to state laws and moving out of state so had to cut my loses. LOVE my Mustang and would get another one but timing doesn't seem ideal to try and get a Premium.

 

[Ocotillo Boy]

My 17' GT PP that is 5 weeks old with less than 3K miles books for 32.5K. MSRP was 44.5K, I paid 45K OTD all in. 12.5K hit in 5 weeks is sad. Glad I like the car and held out for all the options I wanted.

 

[VinnAY]

Reasons like this are why I lease. Without getting in the mud about numbers I value the ability to walk in @ 36 months and drop the keys and walk out. I don't deal with any of that nonsense about trade value and depreciation or being upside when I'm ready to move on.

 

[Competition Orange]

My 17' GT PP that is 5 weeks old with less than 3K miles books for 32.5K.

Not the issue.

msrp 44.5K,

Not the issue.

45K OTD all in.

:frusty: The issue. They took you to the cleaners.

hit in 5 weeks is sad. Glad I like the car and held out for all the options I wanted.

Not to be a total jerk, but this is on you. Mustang resale is a known quantity. No changes in content, and with the 18s around the corner, the deals have never been better. You simply paid too much.

 

[lsiunsuex]

Ford is hurting, my local dealers are stocked to the gills with Mustangs.

In Buffalo, NY - they had like 2 across 3 or 4 Ford dealers. They found what I wanted in Florida and had it transported here. It was also a rental and actually had the Premium package.

I've always leased as well but this was the first one we bought in a long time.

The wife's Elantra GT (mustang replaced it) had a bit of bumper / fender damage when we turned it in - but it had good features and on a 12k / year lease we turned it in with 11k miles. She only ever drove it to work and school and neither were ever far. Dealer never questioned the damage and we were never hit for it cause of the low milage.

To the OP -
Option 1 - Take the hit now, get out if you can and this next one, get it nicely optioned - up to you lease or buy (everyone has different circumstances). If you lease, they won't care about features when you turn it in - they have to take it back at end of lease. If you buy - try to get some nice features so they have reason to take it.

Option 2 - ride it out. If you want, spend a little money to make it nicer for yourself (like you said, sync upgrade, dash, etc...).

Option 3 - try to sell it yourself or on eBay motor? I know it's a royal PITA to sell it yourself but maybe you get lucky...

 

[Angry50]

cars take the biggest hit in the first 2 years. main thing is get what you can afford and what makes you happy. ive traded in dozens of time in short periods. I have put myself upside down but i am happy with my car and i can still afford it so im not bother by my "mistakes" that much.. i dont want to pay this one off and start dealing flat out cost

 

[Hashbrownn]

I do about 20k miles a year.
Trade for the Premium, if you have buyer's remorse for not getting it to begin with... or wait until 2018s hit the dealers and see what kind of deal you can get.
I think it's silly to worry about depreciation on a DD.. It's gonna happen

 

[Mike's Mustang]

My 17' GT PP that is 5 weeks old with less than 3K miles books for 32.5K. MSRP was 44.5K, I paid 45K OTD all in. 12.5K hit in 5 weeks is sad. Glad I like the car and held out for all the options I wanted.

This is why I bought low mileage used.

MSRP 43K
Mileage 8,700
Paid 29K in Jan
KBB 27-29K currently with 15K miles on it

 

[Angry50]

you can do whats "smart" or what you enjoy.. lol

 

[Chad11491]

My 17' GT PP that is 5 weeks old with less than 3K miles books for 32.5K. MSRP was 44.5K, I paid 45K OTD all in. 12.5K hit in 5 weeks is sad. Glad I like the car and held out for all the options I wanted.

Ouch :( you overpaid by nearly 10 grand with the market the way it is on these right now. I got my 15 in the same specs back in 15 for about 36.5 OTD. That's what makes the value hit so hard.

 

[ApollosWar89]

Not the issue.

Not the issue.

:frusty: The issue. They took you to the cleaners.

Not to be a total jerk, but this is on you. Mustang resale is a known quantity. No changes in content, and with the 18s around the corner, the deals have never been better. You simply paid too much.

Ouch. Yeah even the 401a GT PP Premiums going for 37k here in Houston.

 

[RedRyan98]

Is it worth considering just doing a few mods to add some of the features you're wanting? You could add a sync system, do leather seats, change dash trim, etc... If you like the car otherwise it that might make more fiscal sense. Save your old parts, and when you do sell the car put it back to stock, and sell the extras for a little cash back.

 

[jasonstang]

My 17' GT PP that is 5 weeks old with less than 3K miles books for 32.5K. MSRP was 44.5K, I paid 45K OTD all in. 12.5K hit in 5 weeks is sad. Glad I like the car and held out for all the options I wanted.

You over paid.
I was able to get $6k off twice without much heckling.
I traded my 2016 auto with 3k miles in for a 2017 manual. Two exactly identical cars. I lost $6k in 10 months.

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