Resale value, what happened???

[Rypkr937]

It's really not. I posted earlier in this thread that I had a $36,xxx msrp 2013 RAM with 33k miles on it that got totaled back in February and the insurance gave me $29,xxx for it.

A 7 grand drop in 2 years with 33,000 miles is more commonplace.

My mustang msrp was $45,xxx and is valued at $32-33k.

A 12k drop in 6 months with 5000 miles is above the norm. That's all people are getting riled up about.

It's not a 12k drop. More like 5 as almost all loaded ones you can get at least 5k under msrp unless you bought them in initial rush at msrp.

It's a 12k drop off of msrp. I paid $38k for the car and of course didn't pay msrp for the truck either. I was simply making an equivalent comparison.

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[Kbreese]

That's where I scored mine. $7K off sticker, and another $1000 in rebates, and even though I did have to spend $$$ to ship it, I still came out way better than trying to haggle locally - plus it was the EXACT car I wanted and I couldn't find another like it anywhere within 500 miles.

Nice, and wow, I thought their price included any rebates. So you got like $8k off MSRP? Did you further negotiate on their advertised price, or did you pay their advertised price?

 

[Kbreese]

It's a 12k drop off of msrp. I paid $38k for the car and of course didn't pay msrp for the truck either. I was simply making an equivalent comparison.

You are not getting it dude. You need to completely ignore MSRP in this comparison. It makes ZERO sense to talk about MSRP in this case. Any smart consumer knows that MSRP is mostly meaningless. For most items, it's just a rough starting point and nothing more.

What matters is simply what you paid new vs. what it's worth now. Value is what people are willing to pay and sell for, and that's what you have to focus on.

You are only looking at the "value" for what it's worth now, but want to ignore it's actual "value" when it was new...which was $7k less than the MSRP. How can you not factor that in to it's current value?

It's not a $12k loss, it's a $5k loss. You subtract the original value vs the current value. THAT'S WHERE YOU GET EQUIVALENCY.

 

[Socalmustang]

How the hell are people getting 6-7k off these mustangs, I live in socal and I know there is no way in hell we can get a price like that.

 

[Mike00]

It's really not. I posted earlier in this thread that I had a $36,xxx msrp 2013 RAM with 33k miles on it that got totaled back in February and the insurance gave me $29,xxx for it.

A 7 grand drop in 2 years with 33,000 miles is more commonplace.

My mustang msrp was $45,xxx and is valued at $32-33k.

A 12k drop in 6 months with 5000 miles is above the norm. That's all people are getting riled up about.

First off you need to look at is a %. You are looking at 20% vs 27% drop. IT's closer than you think especially when you factor in that the drop is much higher in the first year. 2nd trucks tend to hold higher resale values then sports cars, particularly mass produced sports cars like the MUstang. 3rd and perhaps most important, insurance gave you $29,000 - you likely only would have seen $27xxx from a dealership in trade in as the insurance is paying retail value of the most times.

Also the mustang is selling for $38,000 at the moment for that MSRP. So the offers people are getting are inline with what a new car will sell.

If you buy a new car and trade it in two years you should pretty much expect a 25-30% drop in value. As the biggest depreciation occurs in those first two years.

 

[Kbreese]

How the hell are people getting 6-7k off these mustangs, I live in socal and I know there is no way in hell we can get a price like that.

Take a look:

http://www.appleford.com/all-invent...cted=inventory-listing1-facet-anchor-model-54

 

[MaskedRacerX]

Nice, and wow, I thought their price included any rebates. So you got like $8k off MSRP? Did you further negotiate on their advertised price, or did you pay their advertised price?

I just went with what they advertised. Heck, when I first got the quote, the salesguy wound up coming back later in the day, said he "found another $500 rebate" for me (there were some additional I didn't qualify for). Given a little more time, and the option to actually walk away, I probably could've found another $1000 (maybe haggled on shipping, some extra fees, etc.) Not being able to have any face-to-face time kind of diluted my ability to deal. Heck, I did 85% of it through email

There's probably some things I could've worked on, a few janky fees, but at the end of the day, it was a pretty solid deal and I'm winding up with some cool options I probably wouldn't have sprung for, but will be nice to have. I was also in a little bit of a hurry, since my car instantly disappeared (sold same day I posted it ...)

Basically I started at $42,665, then all the fees (TTT, docs, misc), actually put the shipping in the deal, the extra $1000 rebates were "post tax".

I really tried to work with a local dealer, they couldn't find the right car - I was even semi-flexible on exterior color (wanted Black or Magnetic, but would've been OK with Silver or White), but had a couple of must have options, GTPP, and the Redline Premier. So first I get offered some cars that weren't close, then a few missing one main requirement - my wife thought it was hysterical, said next thing they'll start sending my offers on a Toyota Camry or something

BTW, your username - I know you from the Corvette Forum, I'm a member there since '99 :cheers:

 

[Rypkr937]

You are not getting it dude. You need to completely ignore MSRP in this comparison. It makes ZERO sense to talk about MSRP in this case. Any smart consumer knows that MSRP is mostly meaningless. For most items, it's just a rough starting point and nothing more.

What matters is simply what you paid new vs. what it's worth now. Value is what people are willing to pay and sell for, and that's what you have to focus on.

You are only looking at the "value" for what it's worth now, but want to ignore it's actual "value" when it was new...which was $7k less than the MSRP. How can you not factor that in to it's current value?

It's not a $12k loss, it's a $5k loss. You subtract the original value vs the current value. THAT'S WHERE YOU GET EQUIVALENCY.

I'm not "not getting it" lol. I understand exactly what you're saying, and I don't disagree with you. Disregarding the msrp and using what I paid produces a similar comparison.

Paid 33k for the RAM -- drove two years and 33k miles and got 29k for it.
Paid 38k for the mustang -- have driven for 6 months and 5600 miles and valued at 32-33k.

Losing 4k in 2 years and 33k miles is nothing to get upset about. Losing 6k in 6 months and 5600 miles and I can see where some members are mildly distraught. I'm only making a simple comparison, not disputing the laws of physics here. It's not exactly law I'm just demonstrating a point the mustang has a steep depreciation trajectory. That said, I'm not whining about and would have bought it over again.

 

[Kbreese]

I'm not "not getting it" lol. I understand exactly what you're saying, and I don't disagree with you. Disregarding the msrp and using what I paid produces a similar comparison.

Paid 33k for the RAM -- drove two years and 33k miles and got 29k for it.
Paid 38k for the mustang -- have driven for 6 months and 5600 miles and valued at 32-33k.

Losing 4k in 2 years and 33k miles is nothing to get upset about. Losing 6k in 6 months and 5600 miles and I can see where some members are mildly distraught. I'm only making a simple comparison, not disputing the laws of physics here. It's not exactly law I'm just demonstrating a point the mustang has a steep depreciation trajectory. That said, I'm not whining about and would have bought it over again.

As Mike said, the biggest drop is that first year, and it's also true that trucks hold their value longer. (Except maybe if gas prices are going insane) Also, the more you pay, the more the drop because it's a %, as Mike also pointed out.

I know what you are saying, but it's not as bad as you think and to be expected when buying a new car and looking at the value a year later. Generally speaking, the longer you hold on to it, the better.

 

[Kbreese]

I just went with what they advertised. Heck, when I first got the quote, the salesguy wound up coming back later in the day, said he "found another $500 rebate" for me (there were some additional I didn't qualify for). Given a little more time, and the option to actually walk away, I probably could've found another $1000 (maybe haggled on shipping, some extra fees, etc.) Not being able to have any face-to-face time kind of diluted my ability to deal. Heck, I did 85% of it through email

There's probably some things I could've worked on, a few janky fees, but at the end of the day, it was a pretty solid deal and I'm winding up with some cool options I probably wouldn't have sprung for, but will be nice to have. I was also in a little bit of a hurry, since my car instantly disappeared (sold same day I posted it ...)

Basically I started at $42,665, then all the fees (TTT, docs, misc), actually put the shipping in the deal, the extra $1000 rebates were "post tax".

I really tried to work with a local dealer, they couldn't find the right car - I was even semi-flexible on exterior color (wanted Black or Magnetic, but would've been OK with Silver or White), but had a couple of must have options, GTPP, and the Redline Premier. So first I get offered some cars that weren't close, then a few missing one main requirement - my wife thought it was hysterical, said next thing they'll start sending my offers on a Toyota Camry or something

BTW, your username - I know you from the Corvette Forum, I'm a member there since '99 :cheers:

Well, what they advertise is pretty damn good, so really no need for further haggling, especially if they are finding rebates for you But did they hit you with a lot of ridiculous fees? Seems their reviews surprisingly aren't very good, but I think that's most dealerships.

Ah, cool, yeah I am member there since 2001 I think. :cheers:You have the same name there? I've been lurking there lately, as I am debating getting a H/C C6 Z06 (They are monsters and truly a "poor mans" supercar) instead of a new mustang. I go back and forth with what I want on a daily basis lol

 

[Voo Doo]

That can't be right! Go to cars.com and see what your car is worth. Don't trust KBB! Who would trade in or sell a 44 grand 10,000 miles loaded gtpp for 32 grand! No way! I would say 35 grand minimum!

Yep, someone who just lost their job or can't afford the payments!!! I'm sure there are lots in that boat!! Paid cash for ours!

BUT. sold our 2012BMW 6 Coupe (could have bought 3 new Mustangs or one GT 350 with cash left over!! ) we ordered new !! Won't tell ya what a hit we took on that one!! Oh well, it's only money! Lovin the new Stang waaaay better!!

 

[tribaltek]

Take a look:

http://www.appleford.com/all-invent...cted=inventory-listing1-facet-anchor-model-54

These prices are crazy. $5k under what I priced out for X-Plan. What's the catch? And where do I find a dealer like this near Michigan?

 

[MaskedRacerX]

Well, what they advertise is pretty damn good, so really no need for further haggling, especially if they are finding rebates for you But did they hit you with a lot of ridiculous fees? Seems their reviews surprisingly aren't very good, but I think that's most dealerships.

Ah, cool, yeah I am member there since 2001 I think. :cheers:You have the same name there? I've been lurking there lately, as I am debating getting a H/C C6 Z06 (They are monsters and truly a "poor mans" supercar) instead of a new mustang. I go back and forth with what I want on a daily basis lol

It's typical car sales - even my fairly straight forward deal and no-haggle was frustrating because they were moving _so_slow_ (and for a customer with a decent amount of cash). I think there was some $300 doc fee, they did the tag, I think it would've been cheaper locally, nothing major, generally very happy, and it was the exact car, I wanted so no compromise on anything (as far the actual vehicle goes).

I don't, I'm DT over there (and in real life ), I had a pretty nicely setup C5 Z06, yellow, had a BP hood, Spectre Werks rear fascia, some nice Caravaggio seats with the rear shells painted matching yellow, a number of different wheels (iForged, CCW).

I love the C6 Z06. It's probably my favorite modern Vette, and I prefer the exterior styling over the C7 - though I realize the new car has a much better interior, features, etc. The LS7 is an intake/tune away from 550, and cam/headers away from 650HP.

My high level short list for wants for the next car were simple:

- Convertible
- Seats 4 (well, 3)
- Fun

For me, fun = solid performance, probably a manual and the "performance" variant, a great exhaust note.

Not a ton of options: Mustang, Camaro - then some German options, Audi or BMW. I briefly cross shopped a 2013-ish M3 convertible, the Mustang is way more fun for about $10K less (and 3 years newer), though the hardtop is neat. No interest in Audi, and the newer BMWs like the M4 cab pushes $75-80K.

I had a number of 2-seaters back to back and I never get to drive since I work from home, so this will be awesome for us to cruise in, with the PP and a manual it should be a hoot to drive, and of course the roof is optional

 

[MaskedRacerX]

This was my Z06 (sorry if it's too OT):

 

[Khyber]

How the hell are people getting 6-7k off these mustangs, I live in socal and I know there is no way in hell we can get a price like that.

be willing to travel to get it. did it 3 months after release. koons in baltimore is where i went and several others.

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