Car value shock!!

[Zengineer]

A Ford dealer is a business. They buy things at wholesale and sell at retail just like Home Depot or The Gap.

When I sold a car most recently the dealer offered $27k trade, Carvana offered $28,800 and I parked it at the end of my driveway and sold it for $30k. If a dealer had it on the lot they would have asked $33k and taken $32. That trade-in/private party/dealer retail spread exists on any used car.

If you pay anywhere close to MSRP, your immediate "loss" before you leave the lot is the difference between what you paid and what the dealer paid Ford (and by the way, as most know...they don't really pay what we know as "invoice" price).

The spread between what I can get in my driveway vs what a dealer can get for a used car on his lot is primarily because most people are more comfortable buying from a dealer and with an older car will likely offer at least a nominal warranty and make financing easy.

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[robvas]

The 10 20 25% was just a figure of speech

there's no exact value, it depends on the vehicle etc

it's just usually a shit load of money! Plus taxes and fees etc

 

[roadpilot]

But it is also true that a dealer is 100% free to choose not to accept the plans on any and all of their vehicles. That would be business suicide here in SW Michigan with such a high concentration of eligible auto industry employees, but it is very common for dealers to not accept A/Z/X plans on certain vehicles in short supply.

Once the frenzy dies down, they may begin accepting it. I've seen it happen with Raptors (not the R) and even the Lightning,

While the dealership most certainly can choose to not participate in AZXD plan pricing program, my recollection is that it's all or nothing. They sign an agreement with Ford to participate.

I could be wrong and will stand corrected, but I don't think AZXD plan participating dealerships can refuse to sell AZXD Plan to customer just because they want to sell the otherwise AZXD plan eligible vehicle for MSRP or higher. They risk losing their ability participate at all if they do that.

 

[roadpilot]

A vehicle loses 20-25% in value for the customer when you try to sell it back to the dealership

Just another wild claim. You're pulling numbers out of your ear.

 

[roadpilot]

Correct. For some reason roadpilot refuses to accept that. That's just his opinion, not fact.
Like I said, try to trade one in and see the offers.

Wrong.

I've bought new and traded back in 13 times now, several less than a year and most less than 2 years. How many have you bought and traded back in?

 

[roadpilot]

The 10 20 25% was just a figure of speech

Someone said 25% as soon as you drive it off the lot. Someone else said 20-25%.

In never said there was not an immediate depreciation when you drive it off the lot.

What I've said repeatedly is that it is not 25%.

 

[Interstellar]

Anyone who shops around for any performance car built in the last ~15 years will find used car prices have hardly budged from Covid highs. Prices are still higher than they were in 2018

 

[Zengineer]

While the dealership most certainly can choose to not participate in AZXD plan pricing program, my recollection is that it's all or nothing. They sign an agreement with Ford to participate.

I could be wrong and will stand corrected, but I don't think AZXD plan participating dealerships can refuse to sell AZXD Plan to customer just because they want to sell the otherwise AZXD plan eligible vehicle for MSRP or higher. They risk losing their ability participate at all if they do that.

Every Ford dealer I've ever bought a car from with X plan has at one time or another refused it on specific vehicles. I don't really think it is all or nothing...but I don't know either for certain.

Ford maintains a list of ineligible vehicles...guess what Pony is on it?

 

[Dave2013M3]

Out of curiosity I shipped my car around at CarMax, Dodge dealer and Chevrolet dealer. Pretty much $42k to $44k. I’m shocked this car has lost this much value

Used car market inventory has increased substantially the last 6 months to a year

 

[roadpilot]

Every Ford dealer I've ever bought a car from with X plan has at one time or another refused it on specific vehicles. I don't really think it is all or nothing...but I don't know either for certain.

I've never been refused, so that's why I said I could be wrong. But I can't imagine them doing it on a car that IS eligible.

Ford maintains a list of ineligible vehicles...guess what Pony is on it?

Of course. I just bought one. And I'm an AZ Plan eligible buyer.

But I'm not talking about vehicles that are not eligible for AZ Plan pricing per Ford Motor Compnay. I'm talking about vehicles that ARE eligible (e.g., standard Mustang), but the dealership itself says they won't let you buy it on AZXD Plan.

 

[wilkinda65]

Sorry for the sticker shock OP but c'mon $50k-$60k for a new Ford?
LOL I knew exactly what would happen with that kind of math. I'm surprised it has held that much value so far given the current environment. It is only going to get worse.

If you love the car then don't worry about the depreciation bath you are taking. The money was still 'worth' it to you when you bought the car. Sadly, lots of people are getting a rude awakening that depreciation is outpacing their payments and are underwater on the car note.
Purchasing the vehicle was a choice nobody forced one into. The buyer was the one that signed the dotted line.

Wait, you mean Biden won’t eliminate my debt if I ask nicely? Damn, student loans the person signed on that dotted line as well

 

[horned-toad]

I updated my post, so you may want to check it out. There were a handful of discounts on just the first page of listings. A couple were 3 grand off MSRP.

yup that Ohio dealer has a bunch (all?) Mustangs at Invoice. Maybe the DH discount is in error, but maybe not. The mania is over whether buyers or some dealers what to admit it or not.

 

[horned-toad]

I've bought new and traded back in 13 times now, several less than a year and most less than 2 years. How many have you bought and traded back in?

ignoring 2020-2023, when and what vehicles? Can you post the full buyers order? Point being they may well have inflated your trade to sign the deal. Doesn't mean it was an "honest" assessment that you'd get if you walked into Carmax or another dealer with no intention of buying anything in return.

There's all kinds of gymnastics being played on trade deals that are not present on sell deals. 10-15% loss more or less immediately is a safe and common scenario.

 

[Crew4991]

Wait, you mean Biden won’t eliminate my debt if I ask nicely? Damn, student loans the person signed on that dotted line as well

Not sure where you are going with that?
Pretty sure all political figures don't care what happens to a person's car depreciation.
If you still like the car and have no intention of selling it right now, the value of it shouldn't even be something you consider.

 

[roadpilot]

ignoring 2020-2023, when and what vehicles? Can you post the full buyers order? Point being they may well have inflated your trade to sign the deal. Doesn't mean it was an "honest" assessment that you'd get if you walked into Carmax or another dealer with no intention of buying anything in return.

There's all kinds of gymnastics being played on trade deals that are not present on sell deals. 10-15% loss more or less immediately is a safe and common scenario.

I'm an AZ Plan buyer. Zero games. Same dealership. Same salesman for all but a couple (he retired, now I buy from his son). They don't play games or inflate. I know most of the folks there, including the owners, like family. Almost 2 decades now @ that dealership alone. Plus many others before.

No offense, but I don't need to keep explaining myself to folks who likely haven't purchased many new vehicles. I am more well versed than most anyone you know.

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