Bronco/Bronco Sport Trade In Plan: Dumb?

[MudMonsterRacin]

Wife has an outerbanks sport loaded and I have a 2016 f150 xlt sport supercrew with 56k on it. Still don't know which we're trading on the black diamond non sas bronco when it eventually comes in. Leaning towards trading my truck Original plan was to trade the sport and keep the truck, but my wife really loves her sport. She said shell eventually end up with a full size too. It is a nice little vehicle. My f150 is our weekend driver so it sits all week as i have a work car too so thats what the bronco would be.

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[dejones64]

So, I’ve recently gotten a new job that pays really well and want to reward myself with my dream car: a Bronco. Unfortunately, full-size Broncos are being marked up right now on lots at ridiculous amounts.

So, I plan on ordering one. However, in the meantime, during my search for a Bronco, I found a great deal on a 2022 Bronco Sport at MSRP from a local small dealer.

I’m able to put down enough on the Sport that I would be financing 20,000. The only reason I’m considering this is because the order-to-delivery time on Broncos has been long and indefinite and new cars are holding their value incredibly well.

I would get the Sport, drive it lightly for a few months (I WFH), and then trade it in for a Bronco when it comes in.

Dumb decision? Has anyone else gotten an interim vehicle while waiting for their Bronco?

I am doing exactly this. I reserved the Bronco on day 4 2020. After doing the math I figured it won't arrive until summer 2023. I gave my car to my dad, which left me without a car. So I purchased a Bronco Sport Sept 2021 (below MSRP plus I put $7k down). I figure by 2023 I could afford both vehicles. Surprise surprise, my Bronco is currently being shipped to my dealer, by end of this July. Unfortunately I can't afford both at this time, so I will be trading it in (dealer made me a generous offer).

 

[Pughbert]

I am doing exactly this. I reserved the Bronco on day 4 2020. After doing the math I figured it won't arrive until summer 2023. I gave my car to my dad, which left me without a car. So I purchased a Bronco Sport Sept 2021 (below MSRP plus I put $7k down). I figure by 2023 I could afford both vehicles. Surprise surprise, my Bronco is currently being shipped to my dealer, by end of this July. Unfortunately I can't afford both at this time, so I will be trading it in (dealer made me a generous offer).

How much did he give you compared to how much you bought it for?

 

[Jroub21]

IMO, bronco sports will not hold any value like the Real Bronco. It’ll follow the same depreciation as an Escape. On top of that, paying MSRP for a bronco sport seems ridiculous, they’re everywhere and you can get money taken off.

 

[Pughbert]

IMO, bronco sports will not hold any value like the Real Bronco. It’ll follow the same depreciation as an Escape. On top of that, paying MSRP for a bronco sport seems ridiculous, they’re everywhere and you can get money taken off.

As it stands today, 2021 Bronco Sports with 10k miles are going for MSRP on KBB. I know today's market is hot, but those vehicles have not been deprecating in that way.

Also, in my area, Bronco Sports are mostly unavailable and are actually marked up ~4k

 

[dejones64]

How much did he give you compared to how much you bought it for?

About $1500 less than what I paid. Getting Bronco for $1K under invoice. Ford ESP Warranty for $50 over invoice.

Edit: The Sport was already about $1,200 under MSRP when I bought it.

 

[Smheard]

IMO, bronco sports will not hold any value like the Real Bronco. It’ll follow the same depreciation as an Escape. On top of that, paying MSRP for a bronco sport seems ridiculous, they’re everywhere and you can get money taken off.

I purchased my daughters Sport for $500 below MSRP. When I shopped it at various dealers in the Tulsa are the same Ford dealer paid me $3,500 over MSRP for that same Sport with 3,000 miles on it and six months old.

 

[SilverSurfer]

Don't forget the sales tax hit you will get by buying 2 cars. I would factor in the sales tax on the bronco sport towards the markup on the Bronco. I think on a Big Bend, if you're patient enough you could find a 5k-8K markup.

 

[Bronkers]

 

[yabsquatch]

This is exactly what I did. Traded in a dying ‘04 Jeep GC, bought a Bronco Sport Badlands, and have an order in for a big Bronco Badlands.

When thinking about costs, don’t forget to consider things like potential repairs you will avoid on an older vehicle, or intangible benefits like the feeling of getting to drive around in a NEW vehicle.

For me, I have 4-5 trips planned in the next 9mo that I would have had to rent a car for. That alone was gonna cost me like $2k. So I would subtract that from the overall calculation when I trade in the Sport because that is a cost I now will not incur.

TL;DR - don’t only think about price tag & trade-in value. There are other costs/benefits.

 

[nwGTS]

"Dumb decision?" isn't really a good question. Are you worried about it being a dumb financial decision? If so, then yes this is a bad financial decision if your current vehicle will last you without major repairs before the Bronco.

1) You will pay the MOST for a Bronco Sport right now. With a bear market and likely recession, demand and prices will drop. And they will drop on a new car much more than your 7 yo Accord despite the temporary increased demand and reduced supply on the Bronco Sport.
2) You will pay taxes that cannot be recouped.
3) Auto loan interest rates are matching or are already past in some cases rates of low risk to medium risk investments. So, financing becomes a losing deal counter to when interest rates were under 4% and you could finance it all while investing any cash to come out ahead.

This isn't a good value decision IMO but this isn't my opinion. It's yours. If you find positive VALUE in this financial trade both short and long term then go right ahead.

 

[dejones64]

Yup, cars are a necessary evil. My 2011 Mitsubishi was all paid off, enjoying no car payments. Until the Bronco was announced. Sucked me back in.

 

[Wark]

I'm just worried my current trade (2015 Accord) will lose more value in that time than a 2022 Sport, knowing that my Accord's value right now is like 80% of what it was when I bought it.

You're right though, I definitely don't expect to come out on top. I'm just hoping I break even.

If you read the latest report, fuel efficient vehicles are the new hot item and their value is skyrocketing. Your accord is increasing in value now. Probably not a bad time to transition.

I thought I saw a Big Bend unspoken for in Adams, NY recently. It might sit on the lot there for a bit, most people want trucks for utility in that town.

 

[N8Mash]

Is the Accord paid off? If so, I don't think any math would work out with an interim vehicle purchase being the better financial decision.

It's definitely a gamble - prices could stay inflated or drop by the time big Bronco comes.

If it's the 7 year itch for a new car - have at it lol

 

[bronconagurski]

I had an 8/29/20 reservation and ordered on 2/15/21 and I figured it was gonna be awhile til I got my 2dr Wildtrak so I ordered a Maverick (which I had to wait 7 months for) that I will be trading or selling if my Bronco ever gets built.

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