Trade value shock

[GDN]

For me it wasn't about the enjoyment or anything else. When they acquiesced to my price, it was better for me to have it rolled into the loan than to pay cash for it.

If you do have a good relationship, and they don't screw you around like this, I don't see why you wouldn't give them at least a chance to match the other offer. All I was doing was pointing out that you can get that price from your local dealer, if you feel inclined to give them a chance.

I respect that. I didn't get any of that from my purchasing dealer and I had bought another car from them, and happen to know the salesman from many years ago where we grew up. However the dealer still wanted to play games.

I also didn't even consider buying the extended warranty at purchase. This was a 2 year truck. Things have changed. I'm keeping it longer, but I don't trust the electronics and Ford, so I did go back for the warranty. Being able to do a no hassle, not even a drive to a dealer that had not respected me as a customer, was a very easy choice. Done in 20 minutes in a couple of emails and forms.

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[lakeguy55]

I continue to be amazed that people are amazed that the truck has lost value. If you ignore the bubble created by Covid, the rules of buying a new car have always been the same. Buy a new vehicle, drive it off the lot, and immediately lose a lot of money. With few exceptions, new cars have always been depreciating assets.

But I'm one of those who keeps a vehicle for 10+ years and drives it until it won't go anymore. At least for me, that helps blunt the hurt of "losing" all that money by cost averaging over time. I've never quite understood those who buy a new car and trade it in in a few years or less. A sure fire way to burn money.

 

[Pod]

I do not disagree. Just surprised at the amount of depreciation.

 

[Jaspernuts]

Out of curiosity I got a Carvana quote for $45k on 23 Pro 10k miles; local dealer has a new ER Pro (fleet order that fell through so now available for retail) in work truck white and said they would match the $45k Carvana offer, but it would be another $15k to step up into the big battery so I'll most likely pass.

Same here. 60k for extended range pros near me so 52500 after rebate. 10k is too much to upgrade. If ford puts 5k on the hood I'll upgrade my sr pro.

 

[LightningShow]

A lot of dealers low ball big time on trade in values. I’ve never sold a vehicle to a dealer as part of a vehicle purchase. Always private party. With rates and inventory where they are it’s a bad time to try to trade a vehicle. It will swing back the other way in a couple years. Wait until the tax credits run out and the resale will instantly jump up. I’m planning on keeping my truck for the long haul so i’m not worried about it right now. It will probably do fine on resale in a few years.

 

[Heliian]

I talked to several EV dealers from different brands over the last couple of years. Even though I did my research and knew what I was getting into, they all reiterated to me at the time that they had zero information on resale or depreciation and to immediately assume that the vehicles would have zero value once off the lot. This is in contrast to an ice vehicle at the time where you could assume a halving of value once driven off the lot.

Anything above that is bonus, if you assumed that any vehicle would hold value once used, you are sadly mistaken. You can try and sell it for above market but you'll sit on it.

You have to put yourself in the shoes of a buyer, why would you pay a premium on a used piece of equipment that you don't know the history of over a brand new piece with a fresh warranty.

Those other guys are correct, there was a short window where supply was crunched but that's over. Have a look at the snowmobile market, people still think they can sell their used junk for new price but there is now a glut of supply.

 

[flyct]

If you bought a Lightning EV at peak price levels before the July price drops, without a dealer discount, before the $7,500 rebates that were offered in Oct-Nov and without qualifying for a tax credit you will see the biggest depreciation.

I bought 2 Tesla Model Ys in the last 12 months. The second one net cost was $20,000 less than the first due to price drops and change in tax credit. One is now worth 75% of what I paid for it and the other is worth 49% of what iT cost me with all credits included. Same exact car purchased 4 months apart. I jokingly say I bought the second one to reduce the “dollar cost averaging“.

It is what it is.

Higher cost EVs generally depreciate big time. The lower cost EVs like Nissan Leaf and Chevy bolt purchased when they qualified for tax credits depreciated less.

I paid $71k for a $81k 2023 Lightning Lariat ER after rebate and dealer discount plus I get to claim $7.5k tax credit so I’m only into it $63.5k. if I bought at peak with no rebate or tax credit it would have cost me $25k more.

 

[FordLightningMan]

Used vehicle prices came crashing down. It is what it is.

It would be nice if the same happened to flights, hotels, groceries, event tickets, or any of the other stuff I enjoy. I think the reason the used vehicle depreciation stings a lot of people so much is everything else is still expensive. Prices are still rising at 3% or more in most other segments, vehicles are one of the things dragging inflation back down.

 

[SmoothJ]

I just got my quote for my Platinum... $44K.. lol. I still owe well over that at the moment...

 

[Pod]

Was that quote from a Ford dealer?

 

[WhipSticks]

It's worth noting that the Federal Tax rebates for used EVs also come into play here. While a second owner that buys a qualifying vehicle can get a chunk of change back from the feds, you should know that said "qualifying vehicle" must be at least two model years old. Buyers probably know this, but sellers are probably unaware.

 

[TomB985]

It's worth noting that the Federal Tax rebates for used EVs also come into play here. While a second owner that buys a qualifying vehicle can get a chance of change back from the feds, you should know that said "qualifying vehicle" must be at least two model years old. Buyers probably know this, but sellers are probably unaware.

The moment our trucks fall under that $25K price cap...

I'm sure it's coming, but we're not there yet. Cars like the Chevy Bolt and high-mile Model 3s will be pressured downward in January to qualify, but I think we have a bit of time before that comes into play.

 

[hoovertac]

EV’s are still new, and I wonder if the used market is flooded with EV’s that had 3 year leases.

 

[Pod]

Curious to see the next Ford incentives…now would be a great time for trade assist

 

[JRT]

XLT is way better long term to me because it basically matches the current F150 tech and avoids the large screen that on my Mach-e got buggy this year before I traded it in. If you need leather look up Katskin, they did a custom interior for my Ram in 2014 and was amazing for way less to upgrade.

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