A couple people started posts asking when rebates will appear on the '05 Stang. With 50,000 pre-orders I wouldn't expect rebates anytime soon.

So should you buy now, or wait for the rebates?

If you are trading in a car, the answer may surprise you!
Let's look at an example:

You have a 2001 Mustang GT in excellent condition with 30K miles on it.
If you trade it in today according to NADA, you would get $13,150 for it.
Let's say your discounted price on your new 05 GT is $25,000

$25,000 '05 price
$13,150 Trade in
---------
$11,850
$....711 Sales tax @ 6%
---------
$12,561 Net


But what if you wait until August 2005 when Ford adds on a $2K rebate to clear out the remaining '05s?

$25,000 '05 price
$11,275 What NADA says a 2000 Stang GT with 40,000 miles is worth today
---------
$13,725
$....824 Sales tax
---------
$14,549
$-2,000 Rebate
---------
$12,549

So you save $12 by waiting until next August.

 

When you are happy with something and are fiscally ready to buy a new product is the best time to buy one. Waiting for a small rebate indicates you can not afford the car as it is anyway. As for trade economics, your current car is never worth more then it will be today. Most likely the current car will take a bit of a hit after a few months when 05's are available at auctions used, driving prices of the older body way down. Auctions by wholesalers dictate used car values. I wouldnt expect an 05 to depreciate rapidly any time soon. It will be the hottest used car for the next couple years. I am waiting untill I have definate word on what the spring and MY06 will bring.

 

What if you are NOT going to trade-in? Do you wait then? What about dealer mark ups? I am sure there will be some. Look at what dealers did to the Mach 1 and Cobra for the 1st 6-8 months.



And finally what do you if you are going to pay cash?

 

there probably wont even be rebates.

 

Good job, V10.

The same idea applies to people who are waiting for more power, newer body updates, etc. If you are waiting for a better car, you will forever be waiting. The same goes with a computer. Wait for the newer, faster processor to come out, only to find it replaced in 18 months by one that is twice as fast.

Live for today, tomorrow is not a guarantee.

 

I'm sure that the guys that Mach 1s in 03 for sticker and higher would never have thought that these "limited production" cars could be bought 18 months later for $6000-$8000 less.

Brand new F-150 went for sticker and higher when they came out last summer. Now I see them in the paper with $8000 off MSRP.

I have no doubt that rebates will appear once all the hoopla dies down. If you can wait, then wait. Rebates will eventually appear. If you have to be the first guy on the block with a new 05 Stang no matter the cost, then buy it.

Just don't get P.O. when you see guys buying a stang just like yours, for thousands less, 8-12 months from now.

 

I'd say wait for rebates too. But wuddaya do when in 06 a better stang comes? Do ya wait for rebates on that again?

Just get whatever makes you happy! If it seems like a good deal now then go for it, but if something better comes along and you become unstaisfied with what you have, then don't complain about it because no one will ever get satisfied with what they hve. Everyone always wants more and better.... Just my thoughts.

 

It's almost like buying a computer. In 6 months you can pay half what you would now for the same machine. (Different reasons for price drop, but same concept.)

 

Im going to wait till around next April to June or so (possibly earlier) to buy mine.

Main reason... In order to save up some well needed cash for the car, and I was thinking as most of you said... for rebates (and maybe some dealer haggling I can do to get one thats been sitting on the lot for a while....heh)

Wonder how much they will come down between now and then?... :scratch:

(My trade-in kinda stinks too...)

 

I doubt my '98 v6 will lose much in resale value... it's already in the bottom of the bucket.

I think you bring up a good point - when the new style comes out, shouldn't that devalue the older Mustangs? I was looking at the Accord, and granted there's a big improvement between the 2002 and 2003 model years -- and the price of used cars with similar miles reflects that. Heck, I got a nice discount on my car because it was April of '99 when the new Mustang body style came out.

 

What about those of us who are going to lose their tail on a trade in? I drove my olds WELL during its long life(1999 model, 138k miles,excellent condition). I can use anything above my Eleanor fund I can get to offset that a bit. I have about six months before I can even begin to cobble a deal together, but hey...
Yea, the smart thing to do is pay the danged olds off before I trade it, but a woman needs shoes,and Logans roadhouse and books and stuff!
I am floored that a beautiful sports car retails for about 2k less than this overblown piece of fluff I drive now. Thats an absolute relief.

 

My example was specifically for someone who was trading in a car.

If you do not have a trade in, your situation is different. You have to think about
other factors. Do you need a new car? If so, why wait. Its it a 3rd car / garage queen? Then there is no pressure for you to buy now, you can wait until you think you get a better deal.

The comparison to the Mach 1 is not valid. The purpose of the Mach 1 was to breath some new life into the old Stang, because an all new model was on the way. The Mach 1 was limited production <10K / year. The dealer near me got in 3 Mach 1s. The first one sold immediately for $5K over sticker. The 2nd sold about 4 months after it showed up on their lot. The 3rd sat on their lot for 9 months before they finally sold it.

The '05 Stang is a different story. Ford will build 190,000 of them. If you read the posts here from people who have ordered '05s, most are paying somewhere between invoice and MSRP. I have not seen a single post from anyone who said they are paying more than sticker. We all know what MSRP is and what invoice is. We know that there is only so much a dealer can discount a car. If you're able to order an '05 Stang today for $300 over invoice, you know that in January or April at best a dealer can do is to knock off another $300 or $400. Is it worh waiting 6 months to save another $300?


The F-150 is also not a valid comparison. Ford sells close to a million F-150s a year and is in a bloody market share battle with GM, Chrysler, Toyota & Nissian. The Mustang has it's own built in loyal customer base and is not subject to the same level of competitive pressures.

Will there be rebates? We all know that sooner or later there will be, rebates are now and inherent part of the car business. But I would't count on seeing them until next July or August.

 

Lots of good info here but I could care less about rebates. I am not going to play the waiting game.

 

The only reason I would wait is if you were waiting on a SE or Cobra. The '05 GT will not be a better car in '06 or '07. They may have some issues taken care of that the '05 had or some minor appearance changes, but other than that the car would practically be the same. No matter when you get the car, whether you get rebates or not, you'll still be under if you don't have an enormous down payment or high trade in. My '02 Vert is paid for so I would be on the upside in a few months on a new '05 but I want to see what the SE or Cobra has in store first.

 

Lease is up in June, so I have to wait till May. By then the first recalls will be out and you folks that took the plunge early will be my gunea pigs.

As for next gen hurting previous gen's values...

Take from a guy who owned a 2001.5 Audi B5 A4 who tried to trade in on a 03 B6 (new model) A4, last gen cars ain't worth crap. Wasn't that what happened when the 99's came out or when the higher horsepower 4.6's came out?


Great site by the way! One of the most informative forums I've joined in a long time!

 

If you don't get them on the 05, wait for the 06. People seem to think for some reason that this car is "special". It's a full-run production car. Go to a Ford dealer now, what do you see? Plenty of 04 mustangs unsold. Go to that dealer in 2006 or 07, you know what you'll see? Plenty of 05-06 Mustangs unsold. Ford has a habit of WAAAAY overestimating the demand for their cars. See, thunderbird, SVT Focus, Marauder, Cougar...

 

Just like some of the guys have said here, i'm not waiting for a better car, but i always wanted a limited production car like a SE, so to me it's not a matter of not enjoying life in the meantime but geting something that will be a bit different, more powerfull, and that will retain it's resale value longer.....

 

You all can do what I did. Since my 1996 Cobra Vert wasn't my daily driver, I sold it in June for $12500, put the proceeds in the bank and am waiting for the next Cobra R/Shelby Exotic. The wait stinks, but good things come to those who wait...

 

i wish i was in your position. the new cobra is going to be one amazing car.

i'm gonna be waiting a while until i get a mustang also (a v6 )
so hopefully something good comes my way also B)

 

Rebates will depend on a number of factors.

If demand is as high as it sounds, around 50K cars, I dont think we'll see any rebates for 3 to 6 months, at the least, or until the initial demand is satisfied. If there are that many "sold" orders already the next large batch will be dealer orders. I don't think Ford would rebate the car until they see the dealer cars not moving off the lot. It is going to come down to Ford's expected sales figures for the entire model year. If they fall under the dotted line I think we'll see factory rebates.

Personally, I think the low interest rate approach Ford is taking is a good trade off for paying sticker on a first year car. The other thing is the trade in value of this car is probably going to be only slightly better than the previous cars, due to the fact that the cars is safer / has better technology. Any car that sells 150K a year will still have a moderate to high depreciation loss the first few years. If Ford rebates the 06 model then that is that much more % wise you are going to lose on depreciation on an 05.