My Mache is down to 32%

[jay1122]

I'm still trying to figure out how to use it as a lifeline. My Options contract is up next month. But even at the slashed prices, it would be substantially more expensive to buy a new MME than it would be to just pay the balloon. What am I missing?

I think the key point is the option to return the car to Ford. If you want to move to a different car, it may be better than trade in depending on the final payment amount. Trading it for a newer version MME is just plain waste of money if you ask me. But there are people who lease new cars every 3 years. Money is only subjective.

Sponsored

 

[generaltso]

I think the key point is the option to return the car to Ford. If you want to move to a different car, it may be better than trade in depending on the final payment amount. Trading it for a newer version MME is just plain waste of money if you ask me. But there are people who lease new cars every 3 years. Money is only subjective.

Right. My balloon is $24k, which is probably about what I could get for trade. But I wouldn't be able to buy another MME for that, so I'd have to spend substantially more for a new one and have essentially the same car. If the price slashing trend hits the Kia EV9, I may rethink my plan, but paying the balloon seems like the best option at the moment.

 

[ChehRob]

Pacific NW, 2021 Mach E Select, dealer price - about $26K

 

[GreaseMonkey]

I'm still trying to figure out how to use it as a lifeline. My Options contract is up next month. But even at the slashed prices, it would be substantially more expensive to buy a new MME than it would be to just pay the balloon. What am I missing?

You’re missing that you’re getting a brand new car vs a 3-year old one that you can take another blood bath on its depreciation. But the paint is new!!

 

[Logal727]

Constantly debating if I should keep making payments on my current vehicle or get into something else on a lease, I will prob break even on what I still owe and what is worth, but every month I keep paying I gain more equity unless prices keep falling. The biggest problem is the new MME have nothing that my current trim doesn't have, unless I upgraded to a GTPE I guess.

 

[RickMachE]

Trading is almost always the worst financial decision. Sometimes the sales tax savings is worth it, but rarely. Trading is the easy way not the best way.

Last time I traded in a vehicle was my 15 year old Ford Explorer that my son had destroyed. That was during Cash for Clunkers.

I always sell privately.

 

[kkgg]

The price went down for sure, no arguing there.

But from here on, the rate of decline will be very less. Its not like in another 2 years you car will be 20% worth of the initial price.


Cars depreciate more the first few years, then sort of stays there

 

[JohnFoxeSheets]

The biggest problem is the new MME have nothing that my current trim doesn't have, unless I upgraded to a GTPE I guess.

And even then you'd lose auto parking and kick to open...

 

[Logal727]

And even then you'd lose auto parking and kick to open...

Yeah, this is why I’m keeping what I’ve got, I mean the value can’t go down to zero can it? ?

 

[JohnFoxeSheets]

Yeah, this is why I’m keeping what I’ve got, I mean the value can’t go down to zero can it? ?

If you're keeping it, it really doesn't matter... ?

 

[Phil Martin]

The price went down for sure, no arguing there.

But from here on, the rate of decline will be very less. Its not like in another 2 years you car will be 20% worth of the initial price.


Cars depreciate more the first few years, then sort of stays there

Exactly, the depreciation curve varies from time to time and vehicle to vehicle but most car buyers will experience similar curves (usually not linear) the total lost on depreciation for a given time period will be the area under your curve from purchase price to resale price. When the curve shape has a steeper downward trend early, it hits some owners psychologically as in this case, again the solution is to keep the car longer.

I'll admit I don't own a Mache I was interested at first but then lost interest over time.

 

[Mach1E]

Exactly, the depreciation curve varies from time to time and vehicle to vehicle but most car buyers will experience similar curves (usually not linear) the total lost on depreciation for a given time period will be the area under your curve from purchase price to resale price. When the curve shape has a steeper downward trend early, it hits some owners psychologically as in this case, again the solution is to keep the car longer.

I'll admit I don't own a Mache I was interested at first but then lost interest over time.

Nothing about the last few years and depreciation has followed anything remotely resembling a normal curve.

The old “you lose $5k driving a new car off the lot” was not true at all for 2021-2022. In fact many went UP $5k.

And 2023-2024, it’s looking like you lose $15-20k driving it off the lot.

People are responding differently to these new phenomenon because it’s different than their normal expectations and experience in the past.

So while some may be saying “this is normal and expected,” it’s actually neither.

 

[Phil Martin]

Nothing about the last few years and depreciation has followed anything remotely resembling a normal curve.

The old “you lose $5k driving a new car off the lot” was not true at all for 2021-2022. In fact many went UP $5k.

And 2023-2024, it’s looking like you lose $15-20k driving it off the lot.

People are responding differently to these new phenomenon because it’s different than their normal expectations and experience in the past.

So while some may be saying “this is normal and expected,” it’s actually neither.

Um no, the Mache is depreciation just like other vehicles, the car is nothing special. It's tracking similar depreciation of SUVs over ten years ago for example... remove the tax incentives.

 

[Tha_Ape]

Depreciation on EVs does suck, but assuming you got $7500 back from Uncle Sam, you really should include that in the cars value. It's pretty significant.

Also, if you don't plan on keeping a car more than 3yrs, leasing is generally the better option.

You could lease a GT now and take advantage of the 7500 again.

 

[Triggerhappy007]

I am sure everyone is aware that Ford dropped MachE prices and has 0% financing, what a deal!

EXCEPT…

I got my MachE (2021 Select RWD) appraised to trade up to 2023 GT.

$16,000!

I have had it almost 2 and 1/2 years, and it’s only worth 32% of original price, WOW!

Take it to Carmax to see their offer. Then try to get the dealer to pricematch.

Sponsored