New Mustang depreciation

[CAPP0]

Went and test-drove a 5.0 GT at the weekend and both MrsC and I liked it, so we're thinking of having one as a toy for a couple of years. Fully accept that that will cost us some money; the question is, how much?

We would buy outright, not finance it. Options would be:

- Order a brand new one now. 5.0 GT Manual with the custom pack comes in at a shade under £40k. That includes the (irrecoverable) £2300 first year tax charge, and will attract the usual "drive off the forecourt" depreciation. But it would be new. The again I might wait until after winter.

- Look around and find a low-mileage one-year old in the colour and spec we want. But if it's pre-April 17 then it's £500+ road tax. Not a deal-breaker, my current FFRR is in that band and my old Monaro was too, but the child in me would be gleeful at paying £140 for a car like this

- (Following the salesman's input), wait until the 2018 model is announced, at which point he suspects that Ford may discount any remaining 2017 models in stock (currently Ford dealers are not allowed to discount the car at all apparently). Whether they will, and by how much (and availability) is a gamble. He also thinks the 2018 model will definitely nudge over £40k and thus fall back into the higher tax bracket.

What I would like to do is to look at all three options from the point of view of what the car would be worth in 2 or 3 years time. I've Googled but I can't find anywhere which suggests what the depreciation would be. I don't know; 20% year one then 10% p.a. (for a new one)? Or more, or less? Current one-year olds seem to be on offer at £34k ish, which would be only 15%, which seems very low for year one.

Is there somewhere definitive which can give an estimate of those percentages? Would really help in the decision making and financial planning.

Thanks.

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Thanks - does Glass's give depreciation levels specifically or just values fro which you back-calculate that?

The PCP guys must also have an idea but for obvious reasons they pitch it really low.

I guess another option for worst-case would be to run some WBAC valuations.

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croyde said:

I keep thinking of selling mine as I need the cash

Do we need to talk?

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bennno said:

I bought mine in March 16, just sold last month. It cost me £35.5K and sold for £31k. I did 7.5K miles as it was a weekend car.

I make that £250 per month depreciation, which was pretty good - much better than anything else new at the price.

That's more than acceptable. Did you buy new or used?

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That'll be the former!

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croyde said:

PM me mate as my circumstances are about to change so mat have to sell.

Done

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Merc 450 said:

Mine was £39860 3 weeks ago ex static showroom demo race red 5.0 GT road tax £140. I'm planning to keep it long term and leave it to my daughter. I'm 53 so the longer i live the less the annual depreciation will be

Yep, that's pretty much what he quoted us for a manual GT with the custom pack.

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Pommy said:

The price stories coming out of the US aren’t for nice reading for the 2018 with the right spec.

I’ve ordered a 2018 here in Oz and will find out price in next few months but increasingly looking like I’ll just get myself a 2017, 1 yr old, save $30k and spend some on supercharging it and some changes and still be $$$$ better off.

Whilst the salesman did say that he expected the 2018 to be dearer, surely not by anything like that much - they'd be shooting themselves in the foot surely?

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croyde said:

I stuck my 23 month old 13700 mile GT on eBay at 230pm last Thurs. Chap called at 3pm. Paid and collected it by midnight.

Think I worked out my depreciation at £180 a month.

Pretty good for a Ford.

Ah, you parted with it then! Well done on the sale.

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mfp4073 said:

According to What Car magazine they have a 5.0 GT listed at £44,595. That must be the 2018 model?
The current car however has a retained value of 51% at 3 years old.
How accurate these figures are in reality I'm not sure.

I've just priced up a 5.0GT 2018 model, custom Pack 2 and Magnetic paint and it was £43-ish. Some of the 2018 custom packs are dearer than others, and auto is another hike, so maybe that price is with absolutely everything?

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Since this was my topic, a quick update.

We have been looking for a couple of months now and were planning to go for it, but unfortunately due to a serious (terminal) family illness we are going to have to be putting in a lot of miles for a while, and not only was that not what we wanted a Mustang for but it'll also both cost a lot and devalue a car if we had one. So, the plan is now on the back burner until this situation plays out.

[CAPP0]

Thanks chaps. One for another day.

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Noel1983 said:

So £8k to own a 5.0 V8 Mustang for 2 years....BARGAIN! I’m more than happy with that.

Thanks. That was similar to what I envisaged.

I think I posted earlier in the thread, due to family circs we have had to put this plan on hold but hopefully can revisit at some point.

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croyde said:

Looks like I was extremely lucky to have only lost £4k after 2 years and 14000 miles.

I was also looking at tax, insurance, 2 tyres and a service, so thick end of £2k, if I had kept it another month.

Still miss it and seeing the prices of the 2018 model, made mine a hell of a bargain.

Certainly looks like the earlier ones were a bargain all round, in terms of purchase price and subsequent depreciation.