Car value shock!!

[roadpilot]

I guess my experience in auto and rv sales and management over the last 20 years means I don't know nothing compared to someone as experienced as you.

Rule one in auto sales is play the game to make the numbers look good.

Secondly the hardest vehicle to sell is one that is used and less than a year old.
For a little more money you get brand new with full warranty.
You may not be buying something that was a problem for someone else.
You have a whole lot more to choose from.

But what do I know compared to an expert like you.

Hey, just because you're a seasoned auto salesperson who screwed people on their trade-ins for the past 20 years doesn't mean I let another seasoned auto salesperson do it to me ... Seriously, read my posts in this thread. There was no room for me getting hosed, nor would my dealership do that to me.

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[Trap]

Hey, just because you're a seasoned auto salesperson who screwed people on their trade-ins for the past 20 years doesn't mean I let another seasoned auto salesperson do it to me ... Seriously, read my posts in this thread. There was no room for me getting hosed, nor would my dealership do that to me.

Like I said you are such an expert and a real know it all when it comes to buying. Just keep thinking that, you'll be all right cause you are such an expert

 

[roadpilot]

Like I said you are such an expert and a real know it all when it comes to buying. Just keep thinking that, you'll be all right cause you are such an expert

I know enough to not get screwed when I buy and sell cars, champ. Best of luck to ya.

 

[Trap]

I know enough to not get screwed when I buy and sell cars, champ. Best of luck to ya.

AS I said you are a self proclaimed expert. Good dealings

 

[Upacurb]

The only reason someone would be checking trade in values a month after purchase is if subconsciously they were having regrets.

I am usually too busy enjoying my car- cleaning my car- planning modifications for my car to worry about what its worth - after all...if I plan to keep it for a while....why would I care what trade in values are a month after purchase?

Its a Mustang- not Bitcoin

 

[roadpilot]

The only reason someone would be checking trade in values a month after purchase is if subconsciously they were having regrets.

I am usually too busy enjoying my car- cleaning my car- planning modifications for my car to worry about what its worth - after all...if I plan to keep it for a while....why would I care what trade in values are a month after purchase?

Its a Mustang- not Bitcoin

Kind sir, you have overlooked the fact that today is whiny millennial (insert_day_of_they_week_here). They need something to complain about.

 

[2007GT500]

The values are falling. Yesterday I purchased a used 2024 Mustang GT with 2,800 miles for $49K. The sticker was $62,720. The car was less than 6 months old. Options include Recaro seats, Mag Ride, Active exhaust and PP1.

 

[horned-toad]

used 2024 Mustang GT with 2,800 miles for $49K. The sticker was $62,720

that's impressive. 22% off MSRP AFTER the dealer marked it up over whatever they paid the original owner. Probably at LEAST 3K delta. Which would mean the original owner took a haircut of 27% not counting the sunk cost of taxes. If 5K (quite common) the O took a 30% haircut on a current year, 6mo old vehicle.

O got it good and hard but it's encouraging to see reversion to the mean finally asserting itself.

Here in DC in Feb I took a 30% haircut off MSRP (less since I paid X-plan) on my trade-in (2022 EB Brittany) after a year, to acquire a '23 Mach1 with 1000 miles at a 10% discount to MSRP while the original owner realized a 18% loss. In terms of deals, yeah I overpaid but I had my reasons.

Now maybe in Detroit there are enough "next greater fools" to keep the market divergent from the norm. I wouldn't be surprised, since the manufacturers ladle out rich incentives for the residents of MI compared to industrial backwaters like Ohio.

 

[Stonehauler]

Markets change.

3-4 years ago, there were chip shortages, massive car shortage, etc. People who needed cars had to wait 6-12 months just to get an allotment they could buy. Manufacturer dealers were competing with buy here/pay here lots for any kind of used car and they would very rarely send off a car to auction themselves.

Even last year, we were seeing dealer markups on some cars. Combined with the "new" Mustang model, even a GT could be seen getting a market adjustment in some areas, plus people had huge interest rates because they were still selling every car they could get their hands on. It was truly a sellers market. I saw the same thing on other items as well. Used boats skyrocketed, used guitars were selling for almost as much, if not more than a new guitar of the same type, because the new guitars were not available.

That is not true today. Dealer inventories are increasing, meaning that while they might still have lower levels of inventory today then they had just prior to the Pandemic, they still have more coming in than they have going out to be sold. That means it's starting to become a buyer's market. When that happens, you start seeing what you noted. The price of the vehicle goes down. Traditionally, if you bought a new car and drove it off the lot, you took an immediate 20 percent haircut. Not off of MSRP, but off of what they dealer would typically pay for the vehicle (not including volume incentives).

So, you have a brand new vehicle that is a few months old. Now you want to sell it. As a buyer, I would start asking a few questions.
1) What's the problem with it?
2) Were you not able to afford it? When you can't afford it and know it will either be Repo-ed or you need to sell, you stop taking care of it.
3) how much was it thrashed as a toy? - Especially true with this being a Mustang GT. How many times was it redlined? How many line lock burnouts? How many trips to the track did you take it to? Did you try and mod it and made a hash of it? How many times/how long did you run it over 3000 RPM while the engine was still stone cold?
4) has it been in an accident and repaired?
5) I need to keep in the back of my head that I can't sell this down the line as a one owner used car. It's a two owner used car, and that's going to cut into my resale value later on.

So, the answer is...you take a haircut on it because of those unknowns. Why would I pay 50k for a 6 month old used car when I could get a new car for a 60k that I KNOW has not been abused? The answer is, I would not.
Drop that number to 40-45k, and now I might be interested. I am STILL going to have a clause in my purchase agreement that my mechanic needs to sign-off on it. For example, if the inspection detects excessive brake wear or tire wear, that's a sign you may have abused it. Same if I see new tires and brakes. Have them do an oil analysis. Check any computer history that might be on it, including if you went to a track. After all, how do I know if you went there to watch, or to run? Again, this would be for a Mustang GT or Ecoboost. Are the rims pristine? Are there any paint chips, scratches, etc? Any sign the vehicle was in a flood?

Your car is not special. It's not a special edition, limited edition, or anything else. It's a regular mass produced car. So like any other mass produced cars, expect to lose a large chunk of money on it the day you buy it, and then every day thereafter.

 

[roadpilot]

I wouldn't be surprised, since the manufacturers ladle out rich incentives for the residents of MI compared to industrial backwaters like Ohio.

Please detail these "rich incentives' that "residents of MI" get from the automobile manufacturers.

 

[horned-toad]

Please detail these "rich incentives' that "residents of MI" get from the automobile manufacturers.

just pay attention to the incentives. MI and CA get stuff all the time that the rest of the country doesn't get. If you haven't picked up on that, then you're not watching the market very carefully.

 

[roadpilot]

just pay attention to the incentives. MI and CA get stuff all the time that the rest of the country doesn't get. If you haven't picked up on that, then you're not watching the market very carefully.

I asked you to be specific, not throw out generalities. The only incentive that was available on a GT when I placed my order back in FEB (still is) is program #20068 (financing 1.9 thru 5.9 depending upon term), and that is available nationwide.

 

[horned-toad]

I asked you to be specific, not throw out generalities. The only incentive that was available on a GT when I placed my order back in FEB (still is) is program #20068 (financing 1.9 thru 5.9 depending upon term), and that is available nationwide.

a "specific" answer only applies a couple weeks at a time. The TREND over time is what is important for a local market staying out of step with the rest of the country.

 

[roadpilot]

a "specific" answer only applies a couple weeks at a time. The TREND over time is what is important for a local market staying out of step with the rest of the country.

Generalizations are neither facts nor answers. I actually provided you with a specific program and details.

I think I've made my point. Thanks!

 

[Gr8ful]

Stonehauler. You made some great points. I have been considered a 2023 GT with 2500 miles. Dealer asking $42k. I have not bought but a few used cars for the reasons you stated. I did find a dealer in Ohio that will go invoice on a silver, manual, "regular" GT as they are called by the DH folks. I just get to get there to buy it.
Thanks for reminding me why I don't buy used.

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