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

[Arrowbear Rider]

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.

Great point and another reason I want a MY22.

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[AZ_Liberty]

If you reserved after 19 March 2021, or ordered without a reservation, then you have no Model Year price protection, just Ford's standard retail price protection.

So, on a Base, that's $2000. Next year price increase is unknown at this point. But I'd be surprised if it was under $2000.

So, if you get bumped to next year, that's a lot of extra money.

Depreciation only really matters if you flip cars every few years a 3 year old vs 4 year old vehicle makes a difference. Otherwise, miles are more important. I guarantee my 2007 Expedition with 170,000 miles on it would not be worth substantially more if it was a 2008 instead.

Also, price increases drag up the used market, so I'd rather pay less now and get my Bronco a few weeks earlier.

Also, a lot of these folks saying "I want a model year newer" ordered expensive ones with tricked out electronics. They are going to be mad when Ford decides to de-content the vehicles again like with the magical temp knobs the high end units had for 2021.

 

[lakesinai]

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?

Just buy the car and enjoy it. You have too much time to think!!

 

[SasquatchMansquatch]

If I were still waiting on my order, I'd want to just get it sooner rather than later instead of playing games with depreciation, etc. I love driving mine.

 

[FleshTuxedo]

honestly, didn’t read any of this, but price protection seems like complete BS.
My dealer said I fell into PP, but then when I went to sign I only got $400 of PP.
I raised a stink about it (shoulda been $2400), and the sales guy said either you buy or we sell it… when I asked about it he said that they didn’t want to wait for the long and arduous process of Ford to reimburse them and that they could sell my Bronco over MSRP anyways. Such bullshit

 

[PSUTE]

The market is very different now than it was when a lot of us reserved. Then, you could buy a "leftover" for thousands under MSRP. Today, there is no such thing, they can't build them fast enough. If it's new, it's sold as soon as or before it hits the lot. Conventional wisdom is out the window, right now, a vehicle is not a depreciating asset. 2-3 years from now, who knows what the norm will be?

Specific to the Bronco, there are so many trim levels that the nuances of the differences will be lost in the shuffle on the used market. Sasquatch package being available on all trim levels is a great leveler. Don't see that continuing past '23, maybe '24 unless for the lower levels it becomes outrageously priced.

Not something that's gonna keep me up at night either way, I'm the ugly duckling who got in just under the belt...

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