Resale value is sad, anyone know why?

[TonyD]

My S650 with 11k miles estimated by Ford dealer at $36, 1/2 of the price I paid 2 years ago, not a scratch on it. I was a bit shocked, no way I let it go for that, better to just keep enjoying it but does anyone have any idea why it's like this?

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[robvas]

A quick look at Cars.com confirms that's a decent price, the cheapest used 2024's with less than 20k miles on them aren't much more than that.

First new car? They lose a ton of value the first couple years.

You paid $72k for your car?

 

[Ryunker]

My S650 with 11k miles estimated by Ford dealer at $36, 1/2 of the price I paid 2 years ago, not a scratch on it. I was a bit shocked, no way I let it go for that, better to just keep enjoying it but does anyone have any idea why it's like this?

No car purchased should ever be considered a good investment. Enjoy the cash you spent on it, drive it for fifteen or twenty years then part ways.

 

[TonyD]

thx, I didn't expect it to be an investment - but I also didn't expect it to be only worth about 1/2 it's value after 2 years - this is new for me after my last few cars held theirs, granted a rare 2017 Chevy SS and 2009 CTS-V Coupe. I purposely did not buy a Dark Horse because I wanted to drive the thing and not worry so much about miles, oh well - not many people realize how awesome this car really is, their loss!!!

 

[TonyD]

And no, paid $62 so it's not half but it sure feels that way.

 

[BimmerDriver]

there are 6 reasons for this:

1. Many of us were spoiled/messed up our perspective with Covid prices

2. You had a CTS-V. Not a typial car.

3. You had an SS. See #2

4. As others noted, this is typical for new cars, however...

5. If you had bought a base GT for $42 (or whatever they cost then) you'd be quite pleased. Unfortunately, dealers generally don't consider much of any value in options. Although that does tend to change a bit when they're on the selling side...

6. It also depends on color and transmission choice, as well as wheel choice. I got hosed on my S550 GT convertible because it was yellow, had a stick, and the base wheels. I suspect (no hard data) that the coupe is more desirable with a stick, the convertible with the auto.

 

[Ryunker]

thx, I didn't expect it to be an investment - but I also didn't expect it to be only worth about 1/2 it's value after 2 years - this is new for me after my last few cars held theirs, granted a rare 2017 Chevy SS and 2009 CTS-V Coupe. I purposely did not buy a Dark Horse because I wanted to drive the thing and not worry so much about miles, oh well - not many people realize how awesome this car really is, their loss!!!

I have the DH 700a in blue ember manual with just under 10k miles, it would take 60k+ for me even to consider parting ways and I have had it two years next week.

 

[Ryunker]

there are 6 reasons for this:

1. Many of us were spoiled/messed up our perspective with Covid prices

2. You had a CTS-V. Not a typial car.

3. You had an SS. See #2

4. As others noted, this is typical for new cars, however...

5. If you had bought a base GT for $42 (or whatever they cost then) you'd be quite pleased. Unfortunately, dealers generally don't consider much of any value in options. Although that does tend to change a bit when they're on the selling side...

6. It also depends on color and transmission choice, as well as wheel choice. I got hosed on my S550 GT convertible because it was yellow, had a stick, and the base wheels. I suspect (no hard data) that the coupe is more desirable with a stick, the convertible with the auto.

I have a '13 convert and a '24 DH both manual and i prefer them both, would never considered either car with an automatic. Yet our '71 Mach1 is an automatic and prefer that one an auto VS an antique manual.

 

[Ryunker]

And no, paid $62 so it's not half but it sure feels that way.

So at $62k that's roughly $20k over a base car. Shit that is very close to what I paid for my DH. So herein lies the value drop, the $36k must disregard most of the options you acquired.

 

[Kaleza]

That dealer is shity, thats little bit more than 40% if that was sticker price. When i sold my 24eco with 11k miles i lost just around 25%. So i think 25% to 30% drop is acceptable, 40%in two years is not.

 

[Q6543]

how old are you OP? Just wondering if you’re young so haven’t experienced normal markets.

This is 100% normal and to be expected, the full depreciation curve bottoms after roughly 3 years… then depreciates more slowly over the next 5.

 

[Kaleza]

A quick look at Cars.com confirms that's a decent price, the cheapest used 2024's with less than 20k miles on them aren't much more than that.

First new car? They lose a ton of value the first couple years.

You paid $72k for your car?

Yea but those cars are probably without any options and his should be fully loaded.

 

[Alan Applegate]

My 2024 Eco-Boost Premium is 17 months old, and I paid $40,160.25. It has just shy of 3,200 miles on the OD. What the dealer, KBB, Carvana, and a couple of others say, do not agree with one another. From low to high, the range is $21,500 to $32,000. All this said, I'm not in the market to sell the car so all guesses are moot!

 

[LouG]

Depreciation is just the cost of fun. Imagine losing that much dosh on something boring?

 

[R3G]

Yeah I feel you, if it makes you feel better this is the absolute worst time of year to trade in a mustang and the absolute best time of year to buy one. The market is absolutely stocked with cars, used and new. As others have said, you rarely get much money back on options above the base of your trim level. So if you buy a well optioned GT keep it for awhile and put a bunch of miles on it, at the end of the day miles only account for something like 5% of your trade value as long as its within I think 15K/year. As a car owner you pay depreciation costs per year for estimated mileage, meaning if you own a car for 1-2 years you should expect to drop 10-20% driving off the lot, and 10-15% per year with a 15K per year mileage budget. It makes no sense to drive your car less to get a higher trade value (you won’t). You will get a fair market price for your car and you should drive it like you stole it, as the whole point is to do that lol. We love driving these cars right?

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