Trade in Value

[eastern refugee]

Hold on to your hats guys I was just offered $33,700 for my 2021 Mach E Premium with 5.1 K miles in perfect condition by an Audi dealership in Fremont for a trade-in of one of their electric vehicles. The value of these cars has gone in the toliet! GEEZ (The Sales GM was blaming Elon and Jim Farley for the price cuts!)

ford bought back my 2021 first edition. My wife has a 2021 AWD premium. We paid $58.000. I did the value and it is worth $35,000. I asked my dealer who I have an awesome relationship with and he made sense. He said what is an iPhone worth after the new model comes out?? It decreases drastically because everyone wants the new one.

bottom line is buy the car you want the first time. It will last a VERY long time when ford in December bought my FE back I bought a 2023 Mach E GT in cyber orange. I upgraded the wheels and next week put I g on racing stripes. My FE had 75.000 miles in two years. My wife has 72,000 miles in two years on her AWD premium. We are getting 286 miles and we charge to 100%. In short no degradation and in her case ZERO problems. Will we trade it in?? No idea. There really is no reason to. We EACH drive 2509 miles a month. We have driven from Cali to Washington multiple times. Charging is NEVER an issue. Obviously with the mileage we do these MachE can handle it.

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[DennisD]

Hold on to your hats guys I was just offered $33,700 for my 2021 Mach E Premium with 5.1 K miles in perfect condition by an Audi dealership in Fremont for a trade-in of one of their electric vehicles. The value of these cars has gone in the toliet! GEEZ (The Sales GM was blaming Elon and Jim Farley for the price cuts!)

Sounds about right.

The people that were paying ADM a few months ago were crazy IMHO. A dose of reality was surely going to set in and that time is now.

Just imagine those that paid ADM and are now in the hole around 30k or more in just a year or so. If you go back to my previous posts on threads that dealt with ADM, I was practically begging people not to pay these high prices because they are going to get smacked in the face so to speak with a huge liability of a car that will be worth much, much less in the near future.

I paid MSRP on a 22 Premium AWD ER and received a 7.5k rebate check. All in, I paid around 52 k when the dust settled. If one tries to sell a car within a year or two (in normal times), you are going to take a bath on it. Mine included.

With that being said, I guess the obvious question is "why in the heck would you want to trade so soon?"

You would be much better off to keep it another 3 years (at least) and then consider a trade.

Good Luck!!

 

[thekat03]

Sounds about right.

The people that were paying ADM a few months ago were crazy IMHO. A dose of reality was surely going to set in and that time is now.

Just imagine those that paid ADM and are now in the hole around 30k or more in just a year or so. If you go back to my previous posts on threads that dealt with ADM, I was practically begging people not to pay these high prices because they are going to get smacked in the face so to speak with a huge liability of a car that will be worth much, much less in the near future.

I paid MSRP on a 22 Premium AWD ER and received a 7.5k rebate check. All in, I paid around 52 k when the dust settled. If one tries to sell a car within a year or two (in normal times), you are going to take a bath on it. Mine included.

With that being said, I guess the obvious question is "why in the heck would you want to trade so soon?"

You would be much better off to keep it another 3 years (at least) and then consider a trade.

Good Luck!!

Normally, I am the person who keeps a car for years, because I kind of hate car shopping, and never fathomed I would have a car so bad that I would want to be rid of it in less than a year. And yet, here I am. The car isn't a Mach-E, but rather, another EV, that just does not work for my full use case, and I didn't know just how poorly it would perform in certain respects. So I sympathize with those who want to sell their cars because the car does not meet their needs as they may have expected at time of purchase.

 

[DevSecOps]

Hold on to your hats guys I was just offered $33,700 for my 2021 Mach E Premium with 5.1 K miles in perfect condition by an Audi dealership in Fremont for a trade-in of one of their electric vehicles. The value of these cars has gone in the toliet! GEEZ (The Sales GM was blaming Elon and Jim Farley for the price cuts!)

I know it's a bit more of a hassle, but take a look at Cars and Bids. Most of the MMEs I've seen being sold on there are going for a good price. I was quoted 38k for my GTPE on Carvana but on Cars and Bids they are going for 50-60k.

 

[DennisD]

Normally, I am the person who keeps a car for years, because I kind of hate car shopping, and never fathomed I would have a car so bad that I would want to be rid of it in less than a year. And yet, here I am. The car isn't a Mach-E, but rather, another EV, that just does not work for my full use case, and I didn't know just how poorly it would perform in certain respects. So I sympathize with those who want to sell their cars because the car does not meet their needs as they may have expected at time of purchase.

I see your point.

But here is the real sticking point for me. Those that chose to pay a high ADM, or really any ADM can't really start complaining on how much less their MME is worth from what they paid for it.

I knew (from past experiences), that if I were to negotiate a new car deal a few years back down 3k from MSRP, I would tend to lose (after 3 k off MSRP) at least 10% of what I paid for the car as soon as I drove it off the lot. So in the MME cost, if the MSRP was 58 k, one could typically purchase it (back in the day) for 55K and expect another 6 k loss from that at the time they drove it off the lot.

In other words, the day you purchased a 58K car, the very moment you purchase it, I would expect no more than 48k on it if you were to go back and trade it in. Factor in the tax credit, and the price would dip even more. You could shave another 5 k (at least) and end up with 44k. So in the example of the 21, I would expect 33k as not a bad price in today's world if you fast forward 2 years.

Whether it is a piece of crap or not, one should have expected this IMO. Many of these cars were purchased sight unseen and people were spending money like it was water dripping out of a faucet. This is EXACTLY what I was trying to tell people NOT to do. Those that did pay a high ADM basically have taken a bath on it even more. When they go to trade their car in, it will have very little equity in it. They effectively just threw their money into the wind hoping to get it back.

So many purchased a car sight unseen and paid wayyyyyyyyyyyyyyyyyyyy too much and are now complaining. ?

 

[richsi]

Sounds about right.

The people that were paying ADM a few months ago were crazy IMHO. A dose of reality was surely going to set in and that time is now.

Just imagine those that paid ADM and are now in the hole around 30k or more in just a year or so. If you go back to my previous posts on threads that dealt with ADM, I was practically begging people not to pay these high prices because they are going to get smacked in the face so to speak with a huge liability of a car that will be worth much, much less in the near future.

I paid MSRP on a 22 Premium AWD ER and received a 7.5k rebate check. All in, I paid around 52 k when the dust settled. If one tries to sell a car within a year or two (in normal times), you are going to take a bath on it. Mine included.

With that being said, I guess the obvious question is "why in the heck would you want to trade so soon?"

You would be much better off to keep it another 3 years (at least) and then consider a trade.

Good Luck!!

Drive an Audi and you will see why!

 

[DennisD]

Drive an Audi and you will see why!

I have absolutely no brand loyalty.

What I do have is a Bank Account that show gains/loses on every purchase I make.

What brand the product is has no bearing on the amount I lose or gain with this thread topic. The problem in today's world, is that status and brand loyalty leave many people with a smaller Bank account at the end of the day. I personally think Ford has been known as a "poor man's car" and you get what you pay for. If you buy an Audi, you are buying a luxury car. Apples to Oranges.

Like I have said in the past, I pay cash for my vehicles and I am very careful on how I spend my money. Many that borrow money just see a shiny new object and start signing papers (loan papers I might add) and have no idea what they are doing with their future investments.

If you had cash to purchase an Audi, I have no idea of why you would have purchased a Ford if you like the Audi brand better? If you HAD to borrow money when buying your Ford, you should keep said car and leave the Audi purchases for another day down the road.

I am not certain what your finances are and quite frankly, it is none of my business but I do agree that Audi's are nice but I personally can't open the wallet up to spending that much.

"Drive a car that is paid off and you will see why!"

 

[voxel]

I know it's a bit more of a hassle, but take a look at Cars and Bids. Most of the MMEs I've seen being sold on there are going for a good price. I was quoted 38k for my GTPE on Carvana but on Cars and Bids they are going for 50-60k.

The last GT PE was sold 1.5 years ago (well Feb 2022) on that site. The last GT only fetched $46.5K and didn't even sell (seller must have had a high reserve)

 

[richsi]

I own my Ford and I pay cash too and what I do with my money is my business not yours!

 

[voxel]

Drive an Audi and you will see why!

So... you are complaining about depreciation and then going to buy an Audi? Um... sorry to tell you but you will lose even more an Audi. My Audi loving friend (which I how I acquired my BMW i4) basically buys his Audis for 10+ % off MSRP plus gets top trade in or he won't do the deal because he knows how bad the depreciation hit is with that brand. He's gone through 3-4 Audis in the past 2 years - but still drives an e-tron or S5 (or A8).

 

[Mike G]

I'm supposed to be trading in my '21 Prem ER AWD in a couple of weeks. My salesman worked up the numbers last month and he printed out the wholesale averages and forecasted values on a worksheet and is giving me $1200 more than what the currently forecasted wholesale is.

The values he's referring to on the sheet are a high value of $41K, wholesale of $37.3K and below wholesale of $33k. The June estimated values go down about $1K, and sadly the forecasted value for this car in May of 2024 will be $13.600. That's a big drop.

 

[eleven24]

Also keep in mind when dealer gives you trade credit, you are also saving on sales tax for the amount they give you. In my area, that's 9%. So 9% of $45k is ~$4000, so they are really paying you $49k.

Logically speaking, you might be right and it seems right that the tax credit would be on the full value of the trade in, since you paid tax on the full price at purchase time. I just thought I remembered a past deal where the tax credit was only on the net trade credit after any existing loan was paid off.

 

[Auto Motive]

Has anyone traded their Mach e in?
OMG I can't believe the value has dropped this much.

The dealer is telling me even equity right now, and I have made an extra payment of 1000 every month for 18 months.

6 months ago CarMax type companies were offering more than what we paid.

Place it on auto trader at $1000 less than dealer pricing. You will be amazed at the responses you'll get. I sold a showroom like new 2011 kia optima sx with 104000 miles. Every maint. and extras like tires brakes etc were perfect. Even rust pertected with wax oyl coating. Got 10k on first person from 400 miles away. They flew in and rented a car to see the kia. Autotrader does the money transfer for you for $100 fee. Even gives a free car check report. We had 11 inquires in first week.

 

[RickMachE]

Also keep in mind when dealer gives you trade credit, you are also saving on sales tax for the amount they give you. In my area, that's 9%. So 9% of $45k is ~$4000, so they are really paying you $49k.

Logically speaking, you might be right and it seems right that the tax credit would be on the full value of the trade in, since you paid tax on the full price at purchase time. I just thought I remembered a past deal where the tax credit was only on the net trade credit after any existing loan was paid off.

Sales tax credit varies by state.

Some states give you NOTHING.

Some states give you a partial credit. In 2023, Michigan limits the credit to $9,000 in value, so 6% x $9,000 is $540. That goes up by $1,000 a year. Used to be zero.

Some states give you full credit. I've never heard of subtracting the outstanding loan, since you pay sales tax on sales value, not net of loan.

 

[DevSecOps]

The last GT PE was sold 1.5 years ago (well Feb 2022) on that site. The last GT only fetched $46.5K and didn't even sell (seller must have had a high reserve)

I should have double checked before saying something. I looked there and on eBay motors and it was eBay I was thinking of. Thanks for catching that.

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