Depreciation v. Price Increases. If you don't have price protection???

[Arrowbear Rider]

We're near the end of MY22 scheduling, and I've been reading some people hope to get pushed (at this point) to MY23 due to future depreciation, I have to believe those that want this have price protection and would be paying MY21 prices regardless if their Bronco is a MY22 or MY23.

There are multiple questions:

If PP how far out will Ford PP you? How long can you ultimately wait? And how long do you trust your dealer to honor PP too? Even if it's a rebate from Ford, the dealer has to get you close with MSRP from MY 21 plus rebate for your MY23 price.

If your one of us that ordered when B&P showed MY21 prices but after the retro imposed PP cutoff March 19th, 2021 you've seen two price increases, example for a base, in the beginning, the base price was $28,500 than after retro PP announcement it went up to MY22 $29,300 and then MY 22.5 was showing $30,800 and now on the B&P it's $31,300; so really that's a third price increase*. Plus accessories and options increased too, so my build went up $3,000 and I since added Sasquatch. *But the printed agreement after adding Sasquatch shows $30,800, but dealer stated estimate from Ford and it's up to Ford and $31,300 showed up on B&P after.

Not having PP has made me want a MY22 because I feel that another price increase will out way any "saved" depreciation. What will the new MY23 base price be, $31,900 or more?

I also think that there will be virtually no depreciation because: Ford keeps raising prices which slows depreciation on MY21 & MY22 (raises the roof on prices). Demand is many times what has been produced and will take more than 2 or 3 years to catch up. Even then will they be caught up by MY25?

So I feel that with all cars being behind in producing due to supply chain v. demand, that there will be less use cars available and cars bought during this time, many with ADM will be slower to depreciate since demand v. production is raising prices on all cars, not just the Bronco which has an even bigger gap in demand v. production.

Add in how we all customized our Bronco and that in order to get caught up with demand and give dealers stock, Ford is going to have to produce a bunch of stock units for the dealer lots; 4 doors, BB, w/ soft tops and open diffs. We will have the "golden years" Broncos in that our are heavily optioned. And, I'm betting that Ford will slow custom builds to build dealer stock and to keep the order line more manageable (read no more PP in the future), which will make our Broncos even more desirable.

Want a 2 door build with a less desirable manual and lockers too, better find a dealer that will sell you one of their allotted spots for special orders; because Ford isn't going to take 100,000 reservations again. And, MY23 will probably end in summer time to get back on normal production schedule so there will a few months less of MY23 production compared to MY22 Or MY24. By the time Ford gets through reservation that get pushed to MY23, how many months/weeks of production will be left before the change over to MY24?

Sponsored

 

[OCNORB1974]

Huh??

 

[Arrowbear Rider]

Huh??

Do you think your Bronco will depreciate more than the prices will go up?

 

[Broncos 4 evah]

yes

 

[Compta38]

Do you think your Bronco will depreciate more than the prices will go up?

It'll be 2 years at least before we'll see MSRP on dealer lots so I would say you ain't going to see any depreciation. I am willing to bet Ford does away with PP after 2023 though.

I also thought we would be seeing MSRP on C8 by now as well and that didn't exactly work out either.

 

[Arrowbear Rider]

It'll be 2 years at least before we'll see MSRP on dealer lots so I would say you ain't going to see any depreciation. I am willing to bet Ford does away with PP after 2023 though.

I also thought we would be seeing MSRP on C8 by now as well and that didn't exactly work out either.

You get where I'm going with this. If Broncos for sale on dealer lots are paying an ADM or it's wait a year I say demand is high enough to keep depreciation low, or almost none. Add in price increase and limited ordering options, a lot less than the original number reservations.

 

[Cooldude]

People seem to think prices are going to come down when we see more on the lots.

i say good luck, that’s not going to happen anytime soon.

I mean add in everything you said, plus the economy and certain constraints….,.

 

[Arrowbear Rider]

And if your not planning on selling anytime soon, depreciation doesn't matter. I'm hoping to keep my Bronco as long as I can drive it, so cheaper is better, depreciation doesn't matter.

 

[Cooldude]

And if your not planning on selling anytime soon, depreciation doesn't matter. I'm hoping to keep my Bronco as long as I can drive it, so cheaper is better, depreciation doesn't matter.

Yep

 

[MNBigfoot]

Very little difference in depreciation between my 2004 f150 and the 2005 model, I'm money ahead by not waiting. I imagine the same will be true for my Bronco.

 

[Losy]

I have a feeling the well quipped Bronco's will be a lot like the F150 Raptor for the next year or possibly two. After driving a well optioned f150 Raptor for a few years, assuming you paid MSRP, you can usually get what you paid for it. My colleague just sold his Gen 2 Raptor to a dealer for what he paid 5 years ago. Of coarse it depends on a lot of factors like condition, local market, interest rates etc. But OP's point has a lot of merit.

 

[Arrowbear Rider]

I have a feeling the well quipped Bronco's will be a lot like the F150 Raptor for the next year or possibly two.

Because of how much most customized their order, I can see years from now people looking for those "unicorn" builds from the factory. If any major changes are made, Sasquatch looses part of it package or it's broken up, or it's moved up trim levels and can't be had any more on the lower two trims, any changes could effect us and keep demand and prices on our rigs up.

For example:

Some will value the temp knobs on the duel climate controls that have the number readout on them before it changed.

 

[F OR D]

inflation, supply chain, and economy issues will likely protect owners from depreciation. this won't change for a few years. i mean the 21-22s > 23+ the delta is 2-4k and loss of some features, and sas is up a few thousand too.

if this trend continues i imagine there are less buyers (economy and inflation) which in turn should start to drive down or level prices. that and more production and availability.

adm buyers will probably not be happy regardless, the price increases won't match up, and if demand diminishes over time the price should level off at best.

 

[NVCowboy]

The only real depreciation that concerns me is regarding my trade. I worry about the bottom falling out of the used market while the MSRP of Broncos continues to go up. This particular squeeze could get expensive.

 

[mcinfantry]

We're near the end of MY22 scheduling, and I've been reading some people hope to get pushed (at this point) to MY23 due to future depreciation, I have to believe those that want this have price protection and would be paying MY21 prices regardless if their Bronco is a MY22 or MY23.

There are multiple questions:

If PP how far out will Ford PP you? How long can you ultimately wait? And how long do you trust your dealer to honor PP too? Even if it's a rebate from Ford, the dealer has to get you close with MSRP from MY 21 plus rebate for your MY23 price.

If your one of us that ordered when B&P showed MY21 prices but after the retro imposed PP cutoff March 19th, 2021 you've seen two price increases, example for a base, in the beginning, the base price was $28,500 than after retro PP announcement it went up to MY22 $29,300 and then MY 22.5 was showing $30,800 and now on the B&P it's $31,300; so really that's a third price increase*. Plus accessories and options increased too, so my build went up $3,000 and I since added Sasquatch. *But the printed agreement after adding Sasquatch shows $30,800, but dealer stated estimate from Ford and it's up to Ford and $31,300 showed up on B&P after.

Not having PP has made me want a MY22 because I feel that another price increase will out way any "saved" depreciation. What will the new MY23 base price be, $31,900 or more?

I also think that there will be virtually no depreciation because: Ford keeps raising prices which slows depreciation on MY21 & MY22 (raises the roof on prices). Demand is many times what has been produced and will take more than 2 or 3 years to catch up. Even then will they be caught up by MY25?

So I feel that with all cars being behind in producing due to supply chain v. demand, that there will be less use cars available and cars bought during this time, many with ADM will be slower to depreciate since demand v. production is raising prices on all cars, not just the Bronco which has an even bigger gap in demand v. production.

Add in how we all customized our Bronco and that in order to get caught up with demand and give dealers stock, Ford is going to have to produce a bunch of stock units for the dealer lots; 4 doors, BB, w/ soft tops and open diffs. We will have the "golden years" Broncos in that our are heavily optioned. And, I'm betting that Ford will slow custom builds to build dealer stock and to keep the order line more manageable (read no more PP in the future), which will make our Broncos even more desirable.

Want a 2 door build with a less desirable manual and lockers too, better find a dealer that will sell you one of their allotted spots for special orders; because Ford isn't going to take 100,000 reservations again. And, MY23 will probably end in summer time to get back on normal production schedule so there will a few months less of MY23 production compared to MY22 Or MY24. By the time Ford gets through reservation that get pushed to MY23, how many months/weeks of production will be left before the change over to MY24?

Yes
I’m 49. History for me made me want a 23…. But it’s what it is

Sponsored