Our cars are devalued significantly.

[Sikkun]

If a cars potential resell value is a required factor then you can’t afford the car you are looking at.

Buying new cars is not financially advisable. Selling them after a year or two for another one is not financially advisable. If you have to care about the resell value…you are already past the point of maximizing your dollars.

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[RickMachE]

I sold my 10-year-old 4Runner 4x4 Trail Edition Premium for more than half of what I paid new. To be fair four-wheel-drive trucks hold their value. I put that money into my interest-bearing money market and gladly took Ford’s 0% financing. I’m not worried about depreciation. It’s all theoretical and on paper until another black swan event happens like the pandemic, so you really don’t know what its value will be in the future

I tend to think the Mach-E GT Will be a desirable used EV in the future, as cars become indistinguishable, boring grocery getters. The Mach-E will stand out like the ‘60s muscle cars do for us now.

I sold my 10 year old 2013 F-150 in November for $25k, paid around $32k. Sold my 2021 Mach-E for a several thousand dollar profit a year later. Both unexpected.

 

[thekat03]

I sold my 10 year old 2013 F-150 in November for $25k, paid around $32k. Sold my 2021 Mach-E for a several thousand dollar profit a year later. Both unexpected.

I sold my bZ4X after 8 months for 75% of the purchase price because it absolutely wasn't going to meet my needs, and Toyota effectively implied that the problem was me for naively believing EVs can do more than commute. It sucked selling the car for so much less. Now, used bZ4Xs are listed for 60% of new price, so i guess I lucked out. Now my only concern with the depreciation of my Mach-E is if it ends up in a car accident and gets totalled.

 

[intoMME]

your car is worth exactly what you paid for it if you keep it. Mine is working just as well as it did 50,000 miles ago. Keeping an older car always costs less than buying a new one. My 21 does the same things that a 24 does, so it has the same value. Lease if you want predictability of cost.

 

[kkgg]

Car 101,
You can only buy it right, You can never sell it right.

I am in the same boat as you, better you owe your mistake and think of it as a life lesson learnt.

 

[Timelessblur]

It’s amazing how so many people get philosophical with a “who cares?” Attitude when it comes to resale values and the cost of ownership of a car.

Car dealers must LOVE these kinda shoppers as they can take them to the cleaners every time.

But whether or not people think it matters….. it matters.

Cost of ownership is a straightforward formula-

Purchase price + financing costs + insurance + maintenance + fuel - resale value= cost of ownership.

Now people can pretend those things don’t matter, but they all affect your bank account. Unfortunately it’s only the resale value that you don’t know about until later. Most of the other stuff you can figure out during the time of purchase.

You say that and I will admit I am one of those people who don’t care that much BUT I tend to drive my cars into the ground hitting 8-9+ years old and put a lot of miles on them so resale value is pretty much the same of not much.
I find people like me who drive cars more into the ground don’t worry about resale value as much.

 

[Mach1E]

I agree it does matter, but a car depreciates. Always. Well, I guess there are rare exceptions. Regardless, a new car depreciates the day it is driven off the lot. So if that is a problem, don't buy new cars. If you do, then expect it.

Also, back when I got my car, used cars were selling for more than what people paid for them new just a couple years before. There were shortages of everything, including cars. To expect my 2021 GT that I purchased for $62k to remain scarce would have been illogical.

What has happened to its value is totally predictable. Does it make me feel warm and fuzzy inside? No, but I understand how it works, and I am not complaining. My car was worth it to me then, and it is still worth it to me.

Predictable?

Depends on what you mean by that. If you mean that a car normally goes down in value after a few years, sure.

But the last 3 years have not seemed normal (which to me is unprecedented and unpredictable).

My 2021 went UP in value for the first year or more (very rare) and then completely tanked in year 3 (much larger drop than I’ve ever seen).

It’s the whiplash of rapid price changes that has our heads spinning.

 

[devmach-e]

Predictable?

Depends on what you mean by that. If you mean that a car normally goes down in value after a few years, sure.

But the last 3 years have not seemed normal (which to me is unprecedented and unpredictable).

My 2021 went UP in value for the first year or more (very rare) and then completely tanked in year 3 (much larger drop than I’ve ever seen).

It’s the whiplash of rapid price changes that has our heads spinning.

Keep the car for 7 to 10 years and the weird price swings of the past few years become irrelevant.

 

[phil]

How can you not? Resale is a consideration most people have when it comes to making a decision about a vehicle. If you've got more money than common sense I suppose it doesn't matter. Otherwise it's foolish not to be concerned with resale.

I have far more money than sense. And for the record, I don't have a lot of money, either.

 

[Snakebitten]

You say that and I will admit I am one of those people who don’t care that much BUT I tend to drive my cars into the ground hitting 8-9+ years old and put a lot of miles on them so resale value is pretty much the same of not much.
I find people like me who drive cars more into the ground don’t worry about resale value as much.

I concur.
Even if I haven't driven their wheels off, so to speak, I have kept some percentage of the vehicles I acquire long enough that they are fully depreciated anyway. Even if still fairly pristine.

I have a really clean 2012 F150. About 110,000 miles and purrs like a kitten.
A 2016 MX-5 Mazdarati ? with ~40,000
A 2005 Porsche 987 Boxster with 48,000

The early depreciation, regardless of how dramatic it was or wasn't, simply never came into play.

I'm only guessing, of course, but in 2031, my new GTPE's current rate of depreciation wouldn't matter in the least. All I hope is that it is still just as functional and a pleasure to drive as the 3 vehicles that I feel have already more than delivered on the purchase price. (If it turns out to be a keeper)

 

[TheSteelRider]

This thread is WILD. Definitely learning more about the human condition in this single thread than I have at any time in my life until now.

 

[Kyle]

Post to a local GMC dealer that is selling a 2022 GT gray on gray similar to mine with only 16,000 miles for 38,000. What a depreciation so sad.

Yes that's unfortunate. Glad I got 5,000 dollars in rebates to make it a little easier to swallow

 

[Fat Mach]

I comfort myself by remembering it's only cratering about fifty bucks a day in value. ?

 

[Scooby24]

Cars are tools, nothing more. They’re not investments. You’ll be forever disappointed if you insist upon looking at them that way.

I'm on like car 32 now. I've only been disappointed a couple of times as most of my vehicles have had excellent resale value. I've also bought several older cars and rehabbed them to the point I was able to sell them for 10-15k more than I paid for them. Some folks consider vehicles more than tools. They are forms of entertainment, pride, and in some cases can be investments. If you're selective with your choices and don't go into a purchase with this mentality of "oh well, it's always a bad investment" you will rarely be caught blindsided.

It does happen though and when it does there's not much else that can be done about it once you're already stuck. But that doesn't mean you should just abandon all consideration for cost of ownership including resale.

If you wish to, that's your prerogative. It's not a universal given, however.

 

[MightyMike]

I'm not sure the comparisons on reduction in value are necessarily correct. If I price a used fully loaded Ford Edge (2021 model year) with 25k miles on it, I get a KBB cost of 27k (52% of replacement value)

A brand new 2024 loaded edge goes for about 51k

A brand new mustang mach e, fully loaded goes for 61k (not the rally edition, just the GTPE)

My GTPE with 25k miles on it goes for 29.5k ( 48% of current replacement value)

I paid about 62 for the car (after 8k in rebates), so the current cost is slightly below what I paid, although I did lock in a price before Ford raised the prices.

So we're really talking about a depreciation of about 3% worse for an electric mustang vs. a fully loaded ford edge (the closest to what we have).

Not terrible. Basically all cars lose a lot when you drive them off the lot. Buy them because you want them, and drive them until you don't. And don't worry about the rest.

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