My Mache is down to 32%

[jgcom]

Near where I live dealers essentially never offer a fair price for a trade in, even when taking the small sales tax advantage into account. I always sell privately, even though I hate that.

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[Deleted member 19354]

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!

I got rid of my 23 Premium AWD for the MME GT Friday. Walked away giggling

 

[Mgmken]

Holy smokes! They have declined that much? My 2022 GTPE Red, without a scratch or ding or anything ... whats that worth?

There are so many cool EV's coming out from different manufacturers with great range, great speeds, that look great, etc.

Anyone want to guess what my GTPE is worth? (17,000 miles now)

 

[Thunderanger]

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!

I got a quote from Cars.com on my '21 select AWD SR with 34K miles @ 18,000. So basically they'll be no flipping as I owe at least 25K on it.

 

[ponEpwr]

I will offer OP about treefiddy for his Mach E. Now please update the thread title to:

My Mache is down to 0.7%

 

[Mach1E]

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.

Since you don’t own one, I don’t blame you for not knowing the details of our depreciation over the last few years.

My car- 2021 GTPE loaded, bought October 2021.

Paid $65k (with tax after tax credit)

In 2022- worth $70k+
in 2023- worth $40k
Now- $30k

Nothing about that is normal. Cars don’t get their values cut in half during year 2 of ownership normally. We went from one of the best resale values on the market to one of the worst.

Just some context- I spent 8 years of my career doing automotive advertising for local car dealers. I was literally putting the pricing in their weekly ads. To say I understood and followed new and used car pricing is an understatement.

 

[SWO]

Mileage?

Just because 1 person offered you $16k doesn’t mean that’s all it’s worth.

It's as if people have completely forgotten how the car business works over the last 4 years.

The "My car is only worth [insert lowball dealer offer]" threads are far more annoying than the winter range threads ever were, in my opinion.

 

[DenverDan]

Thank Elon for starting a price war in order to move product. As for high prices for used cars that was due to a supply disruption which has now been resolved.

 

[DeluxeStang]

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!

What people need to realize is dealerships are like pawn shops. You don't go there to be paid what the car is worth, you sell a car to a dealership for fast and easy case, a guaranteed cash in hand offer at the end of the day for no hassle on your end.

I looked it up, most of the 2021 mach-e select RWDs I saw were selling for the high 20s. At a starting price of around 43k, that means they've retained roughly 65% if their value after 3 years, for an EV, that's not bad.

You have to realize these businesses have to factor in their expenses, how long the car is going to be sitting on the lot, desirability, market value, how much profit they need to make to make the transaction worthwhile, etc.

If dealerships bought every trade in at market value, they would go bankrupt almost immediately. Used cars are where dealerships make all their money, used cars and maintenance. So these dealerships have to give you a rock bottom offer to stay in business essentially. The mentality is if you want what your car is actually worth, sell it yourself on the private market.

 

[hedgehog99]

Thank Elon for starting a price war in order to move product. As for high prices for used cars that was due to a supply disruption which has now been resolved.

Ask my friend how he feels about buying Model Y at the literal peak price 1.5 years ago. 2022 MY with similar mileage on Carvana are listed at 50-55% of the original purchase price. Meanwhile I sold my 20 year old beater to Carmax last year for ＄4100, but Carvana is still sending me updates about that car: the offer is now ＄500.

Apart from the price war,I think of EVs more like tech such as smartphones, so I expect them to depreciate even faster. I would lease them except I find switching cars to be too disruptive.

 

[voxel]

Since you don’t own one, I don’t blame you for not knowing the details of our depreciation over the last few years.

My car- 2021 GTPE loaded, bought October 2021.

Paid $65k (with tax after tax credit)

In 2022- worth $70k+
in 2023- worth $40k
Now- $30k

Nothing about that is normal. Cars don’t get their values cut in half during year 2 of ownership normally. We went from one of the best resale values on the market to one of the worst.

Just some context- I spent 8 years of my career doing automotive advertising for local car dealers. I was literally putting the pricing in their weekly ads. To say I understood and followed new and used car pricing is an understatement.

The signs were already there in late 2022 and early 2023. Polestar 2 depreciation was about 30% before Tesla price cuts. My first 21 AWD SR took my Toyota dealer 8 months to sell (finally sold mid-2022) and heard another ID.4 took about the same - this wasn't a rinky-dink dealership either. They are about volume, volume, volume. Sold me a RAV4 Prime and Sequoia at MSRP.

I was looking at an EV6 First Edition in early 2023 that had 2K miles and had the price chopped to $45K (MSRP was $62K I think). That's 28% drop in maybe 9 months. They wanted it gone because it hadn't sold in 6+ months.

IMO vehicles that were overpriced to begin with (i.e all EVs in 2021 and 2022) and now have oversupply are suffering from larger than normal depreciation. That includes many gas cars that received price bumps in 2022 and now are rotting on lots in 2024.

Even the beloved RAV4 Prime has been hit with depreciation.

 

[Motomax]

You paid 50k for a rwd select?? After all the discounts/rebates I was OTD for like 35k for a 21 rwd select with California tax lol. Taxes and rebates don’t count towards your car value btw.

 

[mateo]

When my MME is down to 32%, I just plug it in, and by morning it's back up to 90%. ??

 

[DennisD]

#1 that's ridiculously low ...but you know that
#2 if yer about to go underwater you might consider just taking an offer and getting out
#3 we will probably never see GT prices this low again. Plenty going for under $50,000
#4 the $7500 tax credit still applies to leases and can be used to cut a nice chunk off the new GT price right at "purchase"

Not sure if I am understanding your logic with #2

If you are "underwater", why in the heck would you take a sure loss and then purchase another depreciating car?

Kind of like the Stock Market, you neither gain or lose until you sell it. If you are truly underwater, I would suggest keeping it and averaging the years out to take less of a hit.

 

[Mach1E]

Not sure if I am understanding your logic with #2

If you are "underwater", why in the heck would you take a sure loss and then purchase another depreciating car?

Kind of like the Stock Market, you neither gain or lose until you sell it. If you are truly underwater, I would suggest keeping it and averaging the years out to take less of a hit.

Just a guess, but it’s if you buy a different car you expect to have less depreciation.

Just like the stock market, sometimes you should sell a loser before it drops more.

The timing in this case is all relative. Yes our resale sucks, but currently new car prices are low too. When our resale was awesome, new car prices were high.

That said, I hate any investment analogies for cars as many have said, they aren’t investments, but some of the money concepts do apply.

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