Will Gas Prices Affect Mustang Value?

[rwolf]

I disagree w/ some of the posts here. Substantially higher fuel prices (e.g. $4.00+ a gallon averages) will indeed lower the value of fuel inefficient vehicles and increase the value of fuel-efficient vehicles. Our Toyota Prius is currently worth almost as much as we paid for it 6 YEARS ago. 6 YEARS ago. Read that again. I think the reason is obvious. Lots of Prius envy about to ensue, haha.

Anyway, as a factual statement, the last time gas prices got super high (2008), full-size pickup truck prices plummeted.... you could buy new trucks 15k off MSRP without even negotiating.

I disagree with this, I think you’re looking for a reason where there isn’t one. I bought a 2006 F150 3 years ago for $8k (yes i’m stupid), but 40k miles later (202k on the odometer with ~9.8MPG) I sold the truck for $9.5k 3 months ago. I don’t think efficiency plays a big role here, it’s mainly the cost inflated market.

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[Bikeman315]

I m no expert but don t believe this article has any truth.

OK then. Since you are admittedly not an expert then why should you not believe what is being said. I little bias, maybe?

IF we ramped up production greatly the WORLD price would become lower.

That's not really true either. Oil pricing is primarily set by OPEC not the US. If we could just increase production to cover ourselves then our pricing would go down and the world pricing would remain the same, or go higher. This would be especially true if Europe need to buy oil from somewhere other than Russia.

 

[WildHorse]

I remember during the last gas 'crisis' I could buy Cadillac escalades / ford expeditions for under $500 bucks cause the sheep panicked and hence panic selling.

 

[Bikeman315]

I think we all need this......

 

[Qcman17]

To me it seems the impact of higher gas prices are mainly psychological more so than actually being significant. Right now we are up perhaps 0.45 cents per litre which is about $35 per tank that I would normally fill once every 2 weeks so under 20 bucks a week meh…..

You guys are what $1 per gallon up so $16 per tank? Does it piss me off yeah. Is it a big deal no

 

[cerbomark]

OK then. Since you are admittedly not an expert then why should you not believe what is being said. I little bias, maybe?

That's not really true either. Oil pricing is primarily set by OPEC not the US. If we could just increase production to cover ourselves then our pricing would go down and the world pricing would remain the same, or go higher. This would be especially true if Europe need to buy oil from somewhere other than Russia.

I believe the price is set on the world market stage. so no matter what we produce it would be set by a world price. Oil price is set by OPEC as you stated then a company that drills for it here in the US would not discount the price to the US, BUT it would dilute the world price as it s about supply and demand. I m not bias but I can read and when it doesn't ring true I am suspect.

 

[Bikeman315]

Another angle. Reduce consumption. Then there would be enough for everyone. Yeah right, the pain has to go much higher to get Americans to do that. But it has happened before. We just have short memories.

Are Gas Prices Too High? Or Is Your Car Too Big?

https://slate.com/business/2022/03/high-gas-prices-biden-russia-ukraine-cafe-standards-obama.html

 

[WildHorse]

I just saw in Canada on the way to airport gas is $2.00 L

Yeah man right now where I am it's 1.74/L for regular, 1.93L for premium. It's going up another 11 cents on April 1st no matter what do to our phag grand poobah Justin's carbon tax.

 

[Hack]

If value for your money is a high priority, I wouldn't recommend buying a used car right now. You're better off buying new. Used cars are really expensive. Now is a better time to sell your used car, not to buy one. But buying a car is almost never an investment. It is almost always a losing proposition as far as money goes. You just have to decide how much you want to spend on cars.

I don't know what will happen with gas prices, etc., but usually when gas goes up, larger and less fuel efficient cars become worth less money. It always happens. But we have heavy inflation right now and high unemployment, so it's an odd situation. I wouldn't try to predict what will happen in the next few years.

 

[Iwouldlikeamustang]

So it sounds like now is the time to buy if I have the money.

 

[rwolf]

So it sounds like now is the time to buy if I have the money.

And we're talking a period of maximum weeks, waiting months, you will definitely see an increase in price. If you have the money now, I'd pull the trigger on the right car, soon.

 

[Iwouldlikeamustang]

And we're talking a period of maximum weeks, waiting months, you will definitely see an increase in price. If you have the money now, I'd pull the trigger on the right car, soon.

Thank you @rwolf!

 

[Skye]

Hi everybody. I really want to buy a Mustang GT, Shelby GT350, or Mach 1. I am looking at new or used.

Does anyone think high gas prices will affect the value of new or used Mustangs by lowering the price of them at all? Should I wait to buy or buy now?

Wish I paid attention in Economics class.

Thank you for reading.

Welcome.

I’m afraid you’re not going to find an answer to your question because it involves predicting the future. As you have witnessed from the sometimes animated discussion within the thread, there are a lot of witness accounts, ideas and thoughts on the topic.

If you are considering buying a new car, the door is closing quickly. Production started almost six months ago on MY 22. Many dealers are asking for a mark up of $5K or more, but sometimes these can be negotiated down (and sometimes not).

If you are considering buying a used car, you will absolutely pay a premium. Some models and their pricing are highly speculative right now.

Other considerations…

- The S550 model is ending this year. The S650 has yet to be revealed. Appearance, options, colors, engine options, performance, etc., are unknown

- The 350 is no longer in production. You’ll notice by other threads the 350 and 350R in-particular are highly sought after. Expect to pay a lot at current pricing

- MY 22 is the last model year of the Mach 1, in its current form

- In general, the economies the world over are inflated right now, with several sectors speculative. Most people are going to overpay for almost anything

Aside from the initial purchase, have you thought out the long-term costs? The expenses involved in maintaining one? I started a spreadsheet which covers cost, taxes, insurance, parts, tires/rims, paint protection, etc., etc. It adds up quickly.

What is the purpose of the car? If a DD, some models you mentioned might not be a good idea, but tracking might be best suited for other models still.

You’re concerned about resale value. How long do you intend to hold it? If only a few years, now is absolutely the wrong time to buy anything. I cannot tell you when the next recession will be, but I can guarantee you we will have one in the future. We are a lot closer to the end than the beginning in this current cycle. During a recession the price/value of everything will fall.

IMO, the value of a Mustang will not be primarily driven by gas prices, although it is certainly a factor. Whether or not someone has a job or the finances to support, and the overall state of the economy and peoples' outlook will drive values the most. The Mustang in general is a GT/performance car.

Given all the above, unless you have your heart set on the current MY, it might be best to pause, study the topic and models further and save your cash. Wait until the economy begins cooling off. The selection of used cars will be better. Prices will certainly be better. It took me about 18 months to make my decision and I’m glad I waited.

Good luck in your search. Be sure to browse the threads for more insight still.

 

[ice445]

Go to IKEA and tell me you feel the same way when you're done. Sedans are basically a terrible design. Always have been. The europeans figured this out decades ago, which is why hatchbacks and even wagons are more prevalent there than sedans. VW actually had to create the Jetta from a Golf in order to meet stupid Americans expectations, because "hatchback" became a derogatory term in the 80's. Hatchbacks and wagons rule. Sedans, not so much. Anyone who ever had a hatch agrees.

Addendum: this includes the Mustang and current Camaro, too. The 80's and 90's hatchback designs were better... hatchback cars are better. There's absolutely no reason the S550 couldn't be a hatchback without even changing the body lines. Just move the hinge up to above the rear glass and ta-da... hatchback.

Lol nah, hatchbacks are about maximizing space in a tiny car, which is necessary for european lifestyles. They aren't superior at all. In fact, my Taurus with it's massive trunk and fold down rear seats definitely has more cubic feet of storage potential than my GTI did. Even if I had to transport a tall item (which rarely happened for me) I can just lay it down. I can literally fit my entire 6 foot self in that trunk. Something I could not do with my GTI. That's not to say I don't like hatchbacks, but come on now.

What you need to remember is just because the USA only buys a small quantity of crude oil from Russia, the same is not true of the rest of the world. Some fairly significant economies buy the lion share of their crude and lng from Russia. E.g Germany. Now Germany and these other countries will be looking to source their crude and lng from other markets… the same markets that the USA sources from. This will drive up the wholesale price on those markets that the USA sources from, thus driving up the retail price of all refined fuels in the USA, where I might add they are currently artificially low. You guys are in for percentage increase wise, quite a shock in the coming few yrs. these sanctions will not be lifted swiftly.

I doubt the sanctions will be long lasting. Once companies and countries realize the economic ass whooping that Russia will deliver by staying isolated, they will quietly be welcomed back into the equation. Even ignoring their energy contributions to Europe, they provide large quantities of necessary metals. And once they win control of Ukraine, now they will control 70% of the world's available Neon. When it comes to proving a point or allowing China to make off like bandits, there's only one obvious option that will be chosen.

 

[v8hgt]

There is a new iron curtain falling across Europe. This won’t be short lived and Western Europe will have many more very cold winters as we will have inadequate household heating. In my opinion looking at what’s going on here now, we are beginning the enforced switching over from reliance upon Russian raw materials to being more self sufficient with renewable energy and nuclear.

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