Question about Trade In Value / Depreciation

[RegDir]

It's not I can't afford it issue really. I was just exploring options due to my daughter being added to our policy and once I was quoted other vehicles next to the Mustang realized how much more it will cost to have in the house. The mistake was buying a Dodge Dart BEFORE the Mustang that ended up being a piece of crap and the most unreliable car in the history of me buying cars. The Mustang has probably been my favorite car purchase to date. Just wish I would have bought a Premium is all really.

Ok, so you have the cash on hand to cover the current loan gap as well as the a down payment on the next car to keep you positive on the note.

As long as rest of your finances are in order; i.e. good cash flow, no significant high interest debt like CCs or personal loans, retirement savings on target, then I say go for it.

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[RedRyan98]

If you really do want to make the switch, sell the mustang private party, than try to pick up a used one. You'll sell yours for more money and purchase one for less.

 

[Endokendal]

WHAT? THEY DEPRECIATE???

 

[JCFoster]

Unless your having issues with it, I'd keep it till your in the black, probably another year or two. By then you may be ready to give it to your daughter.

Having a premium model, the only thing I would miss is the shaker radio which really doesn't sound that good with FM radio. When I bluetoothe it to my phone it sounds much much better. All the other stuff is just stuff, I'd say your cloth seats are probably more comfortable than the leather. LED cup holders are cool, but I don't have them on our other car and it's never bothered me. To me, it wouldn't be worth it in your situation just to get into more debt.

To me, having that nagging feeling I jumped ship to soon to fix a want and knowing I was too deep in debt to really enjoy it.

 

[Regs]

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.

It's also based on local market. People in the NJ/NY area like mine can pay, and are willing to pay, higher for the Mustang or related car of its value. There is usually a 4-5 thousand dollar difference alone based on if you live around a large metro area where supply can be smaller while demand can be higher.

If I traveled down RT 1 NJ, I can see many dealerships littered with Mustangs with dead batteries sitting on lots.

 

[Mustang1260]

Ouch lol. Good thing I like it. In So Cal if you can get a mustang for msrp OTD or close to it you did good. We get fee'd to death out here.

You didn't over pay. Most folks here who claim it have very little in common with reality. Every state has different rules as to registration costs, sales taxes, credit for trade in to reduce taxes. The all live in the very small world of 'me' and think every State, County, City has the same fee and taxing structure. They do not get the idea that is some states you pay sales tax on the car you bought at the full sale price of the car-period. Trade in it 1 month later and no sales tax break on the next car... new car, new sales tax charge in full. Some states hose buyers with $295-495 in 'dealer fees' while in CA the max 'dealer fee' is $80 by statute.

OTD comparisons are the stupidist way to compare the price of a car. The only true comparison is BEFORE taxes, before reg fees, before trade in credit, before rebates, before dealer fees, etc what was the selling price of just the car. Only way to get apples to apples comparisons.

There are also market and availability issues...many (and rightly so) simply want X color in X build and that can limit choices aka CA Special, Lighnting Blue, auto, 3.55 gears, 401A --I doubt if there is 1 car to that spec in all of CA, kind of limits negotiation tactics when your tryign to buy the only car int he state that meets your specs. Others will take any option or color combination as long as they get the lowest possible price.

Out of state also means costs to get it (travel, gas, hotels, lost wages) or have it shipped, issues with buying sight unseen, issues with getting it SMOG and spending forever at DMV for registration of an out of state car--all that has monetary value to some/most.

Ocotillo Boy- your OTD in So Cal at near MSRP means you got the car for close to 10% off MSRP. You done good. Ignore the flyign monkeys.:clap2:

 

[Mustang1260]

"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."

Sorry OP but tough love time. Keep it. If your still upside down and you think your 2 yrs out to be even on a 2015MY you are in NO financial postion to trade up. Suck it up. Be a man and deal with your lack of a couple of car options that in the grand scheme of life don't mean a thing and just enjoy what you have instead of wishn and a hoppin for something you can't afford.

Your clearly didn't put down a big enogh payment on your 15. You probably obtained a loan for too long of a time perid--let me guesss, you obtained a loan for a period longer then 60 months (big no no).

In short you bought a car you really can't afford and now you want to compound that mistake by taking a huge financial loss to buy a another car that you cannot afford and will be clearly upside down in.

Have you heard the expression- if you find yourslef in a hole, stop digging.

Sorry OP, you have a great car. Just enjoy it--have a great time driving it. Get it paid off early and save up a proper amount for a downpayment, then buy something new--well down the road.

 

[aspensilver]

"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."

Sorry OP but tough love time. Keep it. If your still upside down and you think your 2 yrs out to be even on a 2015MY you are in NO financial postion to trade up. Suck it up. Be a man and deal with your lack of a couple of car options that in the grand scheme of life don't mean a thing and just enjoy what you have instead of wishn and a hoppin for something you can't afford.

Your clearly didn't put down a big enogh payment on your 15. You probably obtained a loan for too long of a time perid--let me guesss, you obtained a loan for a period longer then 60 months (big no no).

In short you bought a car you really can't afford and now you want to compound that mistake by taking a huge financial loss to buy a another car that you cannot afford and will be clearly upside down in.

Have you heard the expression- if you find yourslef in a hole, stop digging.

Sorry OP, you have a great car. Just enjoy it--have a great time driving it. Get it paid off early and save up a proper amount for a downpayment, then buy something new--well down the road.

Pretty sure OP a few posts up said he can afford the car.

Also, putting down big down payments is a bad idea, IMO. If that's the only way you can get a good interest rate, sure, but personally I can invest in either my own business or stocks that do far better than the rates I'm loaned on something like a car. I shoot for as little down payment so I can allow my capital to continue working for me.

I always feel sad when someone says they did the 'smart' thing by making a big down payment or paying the whole thing off. up front. Financially, that makes no sense.

 

[TomcatDriver]

Ocotillo Boy- your OTD in So Cal at near MSRP means you got the car for close to 10% off MSRP. You done good. Ignore the flyign monkeys.:clap2:

Exactly. Very frustrating here when you negotiate a good price then look at the bottom line and you are back to MSRP. Last car I bought I had to pull out my calculator and make sure I wasn't being scammed somewhere. Sales tax is almost 10% in some cities/counties.

 

[NoVaGT]

If you really do want to make the switch, sell the mustang private party, than try to pick up a used one. You'll sell yours for more money and purchase one for less.

This;

You get more money for your car.

 

[PrimetimeKenny_S550]

If the OP is still evaluating his options, then the following plans are probably best suited. If it makes anyone feel better, I ended up rolling over $8000 in negative equity from a freaking 2014 Nissan Altima into my wife's 2017 Explorer Sport because I thought that buying the Altima was the correct conventional ''decision.'' However, I have never looked back as I love that SUV and having the course of the debacle spread out into 72 months helps tremendously. My sale price for my 2016 Base GT manual was $28k, but Texas has a 6% TTL because of the increased sales tax I supposed, but I ended up Financing $32,300 with zero down, so Ford will make roughly $4k in interest; I can live with that. Point is, make a decision that you can live with because cars are depreciating pieces of metal that affect your ability to make additional principal payments on homes, or save up to put down your first down payment etc. Thus, when you buy your next car make sure that you are buying an extension of yourself that will always have sentimental value. Nothing worse than thinking you drive a rental car!!

1) Simply buy a $220 TOM Tom unit (if the bezel and appearance is a concern, wait out for a used premium bumper ($300-450 range).

2) Take advantage of Ford's current incentives, which are mind boggling low, and try rolling in roughly $5000 in negative equity into a 60 month 0.0 APR loan.

 

[jvivlemore]

Pretty sure OP a few posts up said he can afford the car.

Also, putting down big down payments is a bad idea, IMO. If that's the only way you can get a good interest rate, sure, but personally I can invest in either my own business or stocks that do far better than the rates I'm loaned on something like a car. I shoot for as little down payment so I can allow my capital to continue working for me.

I always feel sad when someone says they did the 'smart' thing by making a big down payment or paying the whole thing off. up front. Financially, that makes no sense.

Correct. The biggest question now is trying to determine if my negative will actually go down by making my regular car payment in the next 6-12mo or if it will actually grow. If it's going to grow now makes sense. If the values tend to hold after 2 yrs of ownership then it makes sense to wait. That's the million dollar question.

 

[mustang_guy]

I bought my mustang for invoice OTD on a special order

 

[JCFoster]

It should go down. I would look at how much your paying in principle right now (which will continue to go up) and do the math in 12 months at how much you'll still owe and the cars value. At some point in the loan you'll be at the break even point.

Goggle an amortization calculator with your loan info and it should be able to break it down for you at how much you'll owe at any given month.

 

[jvivlemore]

It should go down. I would look at how much your paying in principle right now (which will continue to go up) and do the math in 12 months at how much you'll still owe and the cars value. At some point in the loan you'll be at the break even point.

Done that. Principal is currently around $390. It would take 14 or so months to wipe the current negative out. Of course that's not counting in the depreciation in those 14 months either. That's as if the value stayed the same. Does that make sense?

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