Keep it or get out now

[AwesomeJay]

If you want a different car, get a different car. Just know it may cost you a fair amount of money to make that change.

We are back closer to a “somewhat normal” car market. Where if you buy new and try to trade it in 6 months later, you get crushed.

If you go back to ICE manual transmission, buy used though.

What manual transmission car are you even looking at though? I’m not aware of ANY crossover or something similar to the Mach E that comes in a manual. So it would have to be a vehicle style change as well.

It would be a civic si or toyota gr corolla. The financials mean nothing to me, my situation would allow me to take a bath trading in the mach-e , roll the negative equity into a new car and still pay off the new car in 4 yrs. Only difference being I would be keeping the civic after the 4yrs not looking to trade it like the mach-e. It would be close to being the same amount if I pay off the Mach-e or trade and get a new car.

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[zvez]

Getting rid of it now would be an absolutely horrible idea. You'd basically have bought a car for the sole purpose of losing money on depreciation and then getting rid of it. And not only that but you'd then turn around and dump the negative equity into another loan? Pretty clear case of two wrongs don't make a right.

Rolling ANY negative equity into a new loan is always going to be a terrible idea.

If you planned to keep the car for 4 years, keep the car for 4 years. There's nothing wrong with it.

and on top of that regardless of what new car he buys, he will again experience a significant loss in value of his new new car, after doing the same thing only four months ago, making him even more upside down in the new car.

 

[Mach1E]

It would be a civic si or toyota gr corolla. The financials mean nothing to me, my situation would allow me to take a bath trading in the mach-e , roll the negative equity into a new car and still pay off the new car in 4 yrs. Only difference being I would be keeping the civic after the 4yrs not looking to trade it like the mach-e. It would be close to being the same amount if I pay off the Mach-e or trade and get a new car.

If the money doesn’t matter, then just figure out which car you want to own. No need to complicate things. ?

 

[Womps]

I’m wondering why we are having this conversation without any numbers to look at.

 

[ack154]

and on top of that regardless of what new car he buys, he will again experience a significant loss in value of his new new car, after doing the same thing only four months ago, making him even more upside down in the new car.

Ya, that's a good point. Doubling down on the depreciation.

 

[david_quick]

Hello,

I bought my 2023 Mach-e premium AWD extended at the end of November. My intention was to keep it for 4 years max and use it for solid trade in value. Clearly the trade in value for used EV's has fallen big time. I'm paying monthly for it still. I'm curious if I should take the L now and trade it in (assuming the trade in value is the highest it will ever get) and roll the negative equity into a new ICE or keep the MME for the next 3.5 yrs and use it for whatever trade in value its worth then?

I wrote a comment elsewhere on depreciation comparing 23 MME GT with 23 ICE GT new and used prices advertised locally and the MME beat out the ICE GT in retained value in every case. The huge depreciation is not just EVs.

Suggest you compare similar cars to see what the depreciation is for both types. As to what the future holds no one knows. As far as anyone knows sales growth could surge in the next couple of years and make used EV prices climb. Buying new cars is not in any way an investment.

 

[music_cities]

It would be a civic si or toyota gr corolla. The financials mean nothing to me, my situation would allow me to take a bath trading in the mach-e , roll the negative equity into a new car and still pay off the new car in 4 yrs. Only difference being I would be keeping the civic after the 4yrs not looking to trade it like the mach-e. It would be close to being the same amount if I pay off the Mach-e or trade and get a new car.

I really can' t imagine wanting a Civic or Corolla over a Mach-E. I've been driving some ICE cars lately and I can't handle the lack of performance of ICE cars anymore and I really don't want the complexity of a transmission, fuel tank, starter, etc. anymore. But that's just me I guess.

 

[DennisD]

Hello,

I bought my 2023 Mach-e premium AWD extended at the end of November. My intention was to keep it for 4 years max and use it for solid trade in value. Clearly the trade in value for used EV's has fallen big time. I'm paying monthly for it still. I'm curious if I should take the L now and trade it in (assuming the trade in value is the highest it will ever get) and roll the negative equity into a new ICE or keep the MME for the next 3.5 yrs and use it for whatever trade in value its worth then?

That seems like a no brainer to me.

I would sell/trade your current car at a substantial loss and purchase another new car knowing that the car will depreciate at an accelerated rate as soon as you drive it off the Dealership's lot.

You can then take the loss and add it to another car loan and add a few more years to said loan.

Now granted, your loss will be substantial and your car payment (at the end of the loan) will be much more but you will no longer have to pose the question of "What should I do?".

You basically take the bull by the horns and lose your hard earned money to the Dealership and stick it to the man and just rip that band aid off.

Hope this advice helps in your decision.

Good Luck Awesome Jay!!

 

[RickMachE]

The financials mean nothing to me, my situation would allow me to take a bath trading in the mach-e , roll the negative equity into a new car and still pay off the new car in 4 yrs.

If the financials mean nothing to you, then why this thread?

 

[AwesomeJay]

If the financials mean nothing to you, then why this thread?

Discussion? Get opinions/ideas I hadnt thought of?

 

[Dude]

Fortunately I garage my MME. Plug it in when not in use. Do I miss stopping to fill up on toxic smelling gasoline? Do I regret driving to a repair shop to have an oil change? I really am disappointed that I don’t have “Engine Light” anxiety. No spark plugs, no exhaust system to replace. Where is the engine air filter located in this vehicle. When do I change the serpentine belt. Just the time saved on maintenance is really priceless. Would I purchase another ICE vehicle? 100%. I enjoy owning and driving my Ford Mustang Mach-E.

 

[thekat03]

Having sold one new EV after 8 months in order to get my Mach-E, I will say that while I do not understand why you would want to get rid of your Mach-E for minor annoyances, I can understand wanting another car if the one you have isn't living up to your expectations. I sold my bZ4X because it literally could not do what I needed it to do. If it could have performed on road trips at least as well as a Chevy Bolt, I would have kept it, even though I wouldn't have been completely happy with it. I had to pay to get rid of it, because the trade in value was so bad, and that was before Kelley Blue Book and other sources had an estimate of trade in value for the car. It has since dropped even more, and the car I traded in is still at my Ford dealership, listed for $6000 less than I got for trade in. So glad I dumped it when I did. That being said, the trade in or private sale value of the Mach-E is a far more stable number than for the bZ4X. The worst depreciation happened when it drove off the lot. I wouldn't recommend selling it unless it cannot do what you need it to do, and the car you want instead is worth taking that financial hit in selling the Mach-E in addition to the cost of the car.

 

[JSW]

The only reason to monetize your loss now would be to take advantage of another vehicle (that you like) that happens to be taking an even greater level of depreciation. I recognize there are moments in time where dislocations in the marketplace make a “swap” type transaction attractive.

Personally, im looking at a very low mileage iX where the price differential over the last 4 months between the iX and my MMe has tipped radically in favor of pulling the trigger.

Thats the thing about rapid depreciation of ALL EVs - there are moments where good deals can be found due to dynamic relative depreciation.

 

[Phil Martin]

What is considered a "solid trade in value"?

Your best bet is to take the emotion out of it go through the numbers and figure it out, include all operating cost such as insurance, etc.

Always assume vehicles will depreciate a lot in your analysis. Also, fyi, consider saving up and paying cash next time.

 

[HuntingPudel]

<SNIP>
If you go back to ICE manual transmission, buy used though.

What manual transmission car are you even looking at though? I’m not aware of ANY crossover or something similar to the Mach E that comes in a manual. So it would have to be a vehicle style change as well.

I am glad I already own a manual tranny SUV with a gas-guzzling V8 and dents from sliding into trees and rocks. ??

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