2016 Mustang GT Depreciation

2016 Mustang GT Depreciation

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300bhp/ton

41,030 posts

190 months

Thursday 27th April 2017
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5ohmustang said:
While I can only speak for myself and other mustang owners I have met. Buying and owning a mustang is more than just having a fast car.

It is a soulful experience, the mustang v8 is something you generally do not sell for the next car of the moment.
While RHD doesn't remove this experience, it does IMO have an effect on it.

Driving any LHD vehicle in the UK can feel special to an extent. But make it a relatively rare sporting model with good performance and it becomes an event.

The RHD models will diminish this uniqueness and rareness. And they must be selling, because I've seen loads and loads of them. So it stands to reason that many of the new buyers are not the same people that bought LHD models previously.

I think prices will remain high while they are still a novelty and somewhat short supply new. But in time I suspect they will drop like most other cars.

willisit

2,142 posts

231 months

Thursday 27th April 2017
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300bhp/ton said:
While RHD doesn't remove this experience, it does IMO have an effect on it.

Driving any LHD vehicle in the UK can feel special to an extent. But make it a relatively rare sporting model with good performance and it becomes an event.

The RHD models will diminish this uniqueness and rareness. And they must be selling, because I've seen loads and loads of them. So it stands to reason that many of the new buyers are not the same people that bought LHD models previously.

I think prices will remain high while they are still a novelty and somewhat short supply new. But in time I suspect they will drop like most other cars.
From my time on the owner's forums, there are obviously many of us that are first-time buyers in to the marque, but many own an S197 or older as well. They don't appear to be selling up FOR the S550, but certainly the "luxury" of a UK warranty and ease of RHD (be it real or assumed) is helping too.

Personally, whilst I love mine, I'd have ripped GM's hands off for a RHD Camaro. I'm not hugely bothered about RHD so much as a good dealer and parts network to back it up (which you know all too much about!). I may just have to get a LHD one as well :P

OddCat

Original Poster:

2,527 posts

171 months

Thursday 27th April 2017
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My budget £30k. So will be one if these in a few months time or a 4 year old C63 AMG coupe sooner I think....

OddCat

Original Poster:

2,527 posts

171 months

Friday 28th April 2017
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I have only been looking at Autos, as I wouldn't want a manual, but expanded my search to include manual cars just to see what was happening with those as there are more around and they provide a better picture.

There are 16 plate cars with tiny mileage at Ford Store dealers with asking prices lower than similar spec private sale cars with thousands of miles on the clock. Given that, even like for like, you would expect dealers to be asking maybe 20% more than private sellers for cars with similar spec / mileage, let alone ones with tiny mileage vs ones with thousands of miles, this is plain weird.

Examples (all manual with custom pack):

Dealer, 2,000 mules £34k http://www.autotrader.co.uk/classified/advert/2017...

Dealer, 1,000 miles, £35k: http://www.autotrader.co.uk/classified/advert/2017...

Private, 6,500 miles £36k: http://www.autotrader.co.uk/classified/advert/2017...

Private, 750 miles £36k: http://www.autotrader.co.uk/classified/advert/2017...

Seems odd that private sellers are expecting such strong money. If I were selling a car (any car) privately that, at a franchised dealer, would be £35k I'd expect to get maybe £30k. Or a little above WBAC valuation. Otherwise surely the person will simply buy from the dealer with all of the razzamataz, part ex facility, finance, comeback, no fear of cash transferring / fraud etc ?

djc206

12,350 posts

125 months

Friday 28th April 2017
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You wouldn't need to take a £5k hit. Dealer vs private on a car still in warranty shouldn't be much at all. For peace of mind maybe a couple of grand. I think there may still be a few private speculators out there still.

WRT your C63 vs Mustang dilemma I'd personally consider the value of the warranty, the type of people who you often see driving C63's and therefore the potential level of mechanical sympathy the car has been shown and the overall running costs. I have a huge soft spot for C63's and almost bought one instead of my RS4 but I suspect you need to tread carefully.


OddCat

Original Poster:

2,527 posts

171 months

Friday 28th April 2017
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It is basically coming down to a toss up between something like:

This:

http://www.autotrader.co.uk/classified/advert/2017...

And this:

http://www.autotrader.co.uk/classified/advert/2017...

Edited to say: they both have 2 years warranty.........

djc206

12,350 posts

125 months

Friday 28th April 2017
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Tough choice. What will the C63 be worth in another 3 years?

OddCat

Original Poster:

2,527 posts

171 months

Friday 28th April 2017
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Hmmm.....

In 3 years the C63 will be 7 years old and have 60,000 miles. The Mustang will be 4 years old and have 38,000 miles.

I reckon the C63 will be worth £18k and the Mustang maybe £21k. They will therefore each have lost £14k.

Running costs similar. Depreciation similar. Performance similar (as near as makes no difference anyway - I'm not Lewis Hamilton). C63 might be better built - but Mustang is half the age in 2020 so maybe less likely to have significant / expensive issues ?

How a car sounds is a massive part of my enjoyment. So maybe it comes down to which has the best standard exhaust note (which might be the C63 ?)

First world problems !

djc206

12,350 posts

125 months

Friday 28th April 2017
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I'd say with stock exhausts the C63 will beat just about anything barring the obvious exotica for sound. For a small amount the mustang can be made to sound incredible though. Sadly given where my car is parked and that I work shifts in the interests of not pissing off the neighbours mine is being left with a stock exhaust.

I don't know how much it costs to service a C63 but I can't imagine its as cheap as the Ford. The mustang will likely achieve marginally better fuel economy although when you're talking about 15 vs 20 mpg it's all rather trivial!

Personally I'd be tempted to run a mustang for a year and then revisit the C63 idea

300bhp/ton

41,030 posts

190 months

Friday 28th April 2017
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djc206 said:
I'd say with stock exhausts the C63 will beat just about anything barring the obvious exotica for sound. For a small amount the mustang can be made to sound incredible though. Sadly given where my car is parked and that I work shifts in the interests of not pissing off the neighbours mine is being left with a stock exhaust.
You need either an active exhaust or an electronic cutout. That way you can have it quiet or loud as you please.

DaveGB

1,670 posts

181 months

Friday 28th April 2017
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300bhp/ton said:
djc206 said:
I'd say with stock exhausts the C63 will beat just about anything barring the obvious exotica for sound. For a small amount the mustang can be made to sound incredible though. Sadly given where my car is parked and that I work shifts in the interests of not pissing off the neighbours mine is being left with a stock exhaust.
You need either an active exhaust or an electronic cutout. That way you can have it quiet or loud as you please.
Problem is all active exhausts revert to open when switched off, so for first few seconds at start up you get the full bark

300bhp/ton

41,030 posts

190 months

Friday 28th April 2017
quotequote all
DaveGB said:
Problem is all active exhausts revert to open when switched off, so for first few seconds at start up you get the full bark
Must just be a matter of if the solenoid is energised or not. Can't believe it would be that hard to rewire it.

jimboy2

179 posts

130 months

Monday 1st May 2017
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I just find the C63 a bit boring. The Mustang gets sooo much more attention than the Merc. It would be an easy decision for me

croyde

22,894 posts

230 months

Monday 1st May 2017
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Probably repeating myself but my 2016 Comp Orange GT is for sale on PH and eBay.

Really don't want to sell it, the plan was to keep it forever and not worry about depreciation, but lack of work is starting to mean rent difficult to find.

OddCat

Original Poster:

2,527 posts

171 months

Tuesday 2nd May 2017
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croyde said:
Probably repeating myself but my 2016 Comp Orange GT is for sale on PH and eBay.

Really don't want to sell it, the plan was to keep it forever and not worry about depreciation, but lack of work is starting to mean rent difficult to find.
Would be interested to see how you get on selling privately. You must be asking pretty much what you paid for it ? Have you had much interest ? If so, from what sort of people ?

There are 44 new 5 litre Mustangs on AT and only two have done more than 7,000 miles. Three quarters of them have done less than 3,000 miles. So it doesn't look like people are going very far in them.

Oddly, Ford Dealers seem to be most realistic about pricing. Private sale asking prices are generally higher as are non-franchised dealers (but most of these are probably on SOR with the owners having high initial expectations of minimum they want from the sale).

Prices are held high because the supply is still slow, the novelty value is still there and most cars on sale have tiny miles which is distorting the average value I think. It won't be long before we see the first ones dipping below £30k.




OddCat

Original Poster:

2,527 posts

171 months

Tuesday 2nd May 2017
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swerni said:
May have a great deal to do with the dollar rate declining by circa 15% since then
Yes, that will almost certainly have contributed to the accelerated new car price increases in £ in the last few months. But the £40k threshold for the new (mental) Road Tax should have an effect both ways:

1. it should cap new cars at £40k (otherwise they will be subject to the extra £310 per year for the next 5 years - so why would you spec one at £41k ?)
2. it should make the pre April 2017 cars less attractive as they are stuck with £515 per year whereas newer cars that sneak in under £40k will be subject to annual Road Tax only £140






mfp4073

1,946 posts

174 months

Tuesday 2nd May 2017
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About 10 years ago I bought a Vauxhall Monaro V8. I remember watching the prices at the time and waiting for depreciation to kick in. It took three years before the prices finally went in to free fall.
I picked up a year old CV8 for less than £19,000 with 6000 miles on the clock. At the time full list price was just under £30,000. I still have that car today.
If you get stuck with the top wack road tax ..like me, just sorn it over the winter.
The Ford Mustang is no different to any other car, they will depreciate eventually. Be patient.

foliedouce

3,067 posts

231 months

Thursday 4th May 2017
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croyde said:
Placed an order for mine in Jan 2015. It arrived Jan 2016. A year later the same car is £5k more with still a long wait.

That's why the secondhand prices have not plummeted. .....yet.

Only last week a trader offered 30k for mine. Not bad considering that's only 3,000 quid to own a great car for 14 months and do over 11,000 miles in it.
Is that not enough cash for you?

I have a GT 'Vert that I'm about to sell and wasn't looking for much more than that. Hadn't thought about approaching dealers, would you mind telling me which one it is (PM if you want) so I can give them a call. I can't be assed to deal with tyre kickers from Autotrader.

Thanks

croyde

22,894 posts

230 months

Thursday 4th May 2017
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Well as its been 6 weeks since he offered 30k, he has now offered first 28.5k and upped it to 29k.

I now think if I get that I should count myself lucky. Still not a bad loss for 15 months of fun.

The company is called Alexander Prestige. Tend to deal in high end stuff like Porkers, Lambos etc

foliedouce

3,067 posts

231 months

Thursday 4th May 2017
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Thanks, appreciate the steer