stock01gt

At what point does the depreciation on a Mustang start to level off?

I realize when you buy a car, you lose around $4K the minute you sign the papers, and depreciation for the first year is pretty steep.

I've had my GT for 2.5 years now, it's half paid off. Even at 0% interest, I am barely keeping up with the depreciation. Right now, if I were to trade it in, I am technically upside down.

The re-sale value according to all of the car pricing guides is a little above what I owe. Of course, a car's value is only equal to what you can sell it for. I have had mine on the market for 6 months now, and no one has even taken a look at it.

It's depressing watching the value go down as fast as I can pay on it. I"m just wondering when I get to see my balance actually fall below the value. That's gotta happen some day.

Thanks,

burningman

Right now I'm ok..I'll still get a good deal on the trade in but in 2006 when i walk into a lot to get a new stang I bet they'll give me 100bucks and a cup of coffee for my troubles

1 COBRA

IMO, 5th or 6th year.

stock01gt

Hmm, 5th or 6th year.

That's not good. I have a 5 year loan at 0%.
In 2.5 years, I have paid half of the car off.
In 2.5 years, the car has depreciated 50%

That means at this rate, in the 5th year, when I pay it off, it will be worth $0.00.

The 6th year, I will have to pay somebody to take it! lol

I realize Mustangs are cars you have to buy for the long term. I was just hoping for once in my life, I could get a little equity into a car.

85CapriGS

Don't sell it. Problem Solved.


You will be sorry you did, well unless you get a fox body.

stock01gt

Oh if it doesn't sell before I make too many more payments, I'll never sell it. Then once it's paid off, I'll get me a fox to add to the collection.

hatsharpener

The zero percent financing is the problem with depreciation. There is no reason to buy a used one when you can pick up a new one for dirt cheap.

38special

Keep the car. In time it will be something as a collector piece when we all have alternative fuel engines....not.

I wonder if some enterprising fellow will make a conversion kit for my 03 in a dozen years or so?

dave 02 gt

when ford is selling 04 gts for $18,900 an you paid $23.000 for yours, the resale/upside down on 01/02 stangs is steep.

stock01gt

Yeah that makes sense. Actually I was looking for a used one when I bought mine. Although it was a few thousand cheaper, since I would have to pay interest, the payment was going to be about the same, so why not get a new one.

Oh well, when I bought it, I said I would never get rid of it. Now that looks to be true.

Thanks for your thoughts. I wasn't looking at the obvious, which you guys have pointed out.

The_Wretched

best thing i say is trade it in. if you sell it on the street you might make more $$$ but like you said. no ones taking a look. it sucks but depreciation is something we all deal with. one of my cars went down almost 4 grand in under 1 yr. i have a 00 V6 and 04 mach1. though the mach is something i dont ever plan on selling. i will make it a show/race car. either way the mach1 shouldnt depreciate disgusingly.

stock01gt

If all I was looking for was to get another car, I would trade it in, since no one is buying.

Since my goal is to get out from under the payment so I can buy a new house, trading one payment for another doesn't help me much.

Oh well, I'll just keep chugging along. I'm working on a few things that will hopefully let me keep the mustang and buy a new house. That would be the ideal plan. :-)