I literally laugh at the people who buy trade/annually. Good luck to them!
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OP
OP
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- #93
Itās disastrous for people who paid adm and have 84 month loans and need or want to get out of them.
That is a good point. I paid MSRP for my 2021 Bronco but the value of my Wrangler trade-in more than made up for a discount off MSRP. I could never get that much for my Wrangler trade-in today.Prices go up, and prices go down. I paid MSRP for my bronco just over a year ago and got nearly sticker for my wrangler trade-in that was three years old with 20,000 miles. if I was doing it today, Iād probably pay 3 to 5 grand less for the bronco and get 3 to 5 grand less for the wrangler
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It was always going to be disastrous for them
Nobody ever said theyāre wasnāt any risk in paying 10-20k+ over sticker. If anything nearly everyone said it was crazy. They were always gonna get screwed.
Is that who weāre talking about here? I donāt think it is.
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I guess it doesnāt matter too much at this point. Ford set my buyout at the end of my lease if itās underwater at lease end, itās not my problem.
If my truck wasnāt underwater, I could consider terminating the lease early or buying it out.
A lot of people on this thread are failing to recognize the impact of a devalued currency. Saying "My bronco is worth nearly as much as I paid for it" is completely inaccurate because the replacement value of what you purchased is more expensive now that inflation has devalued our currency. You will get out the same number of dollars, but those dollars buy less.
For example, my uncle told me the other day that he sold his dive regulator sitting in his garage since 1965 for a whopping $85 bucks, while he paid $20 for it new. Looks like he made a nice 400% profit? Except that a new regulator costs $500-1000 nowadays...
Sinking 50K into a vehicle and having the currency depreciate by 50% a couple of years later and bragging about how "MY BRONCO IS STILL WORTH WHAT I PAID!" is a self-serving mental fallacy. If an identical replacement in 2024 now cost 75K then you lost 50% for the opportunity to get 3 years of fun memories in your vehicle, you are not at "break even" because your new bronco cost 25k or 50% more, so you need to come up with 50% more cash. Wage inflation has not gone up 50% since 2021, perhaps only 10-15%, so really you're out about 35%.
Long story short cars are not investments. Even though MSRPs are being discounted used values are also dropping hard. It would be interesting to see graphs of the two plotted over the last year by trim (Badlands, Wildtrak, Black Diamond, etc) and see which is dropping faster. Back in 2022 and early 2023 when MSRPs were rising due to excess demand and constrained supply you did have a situation whereby used values were rising, but that is no longer the case, so I'd expect to see that line decelerating hard along with new sale prices.
For example, my uncle told me the other day that he sold his dive regulator sitting in his garage since 1965 for a whopping $85 bucks, while he paid $20 for it new. Looks like he made a nice 400% profit? Except that a new regulator costs $500-1000 nowadays...
Sinking 50K into a vehicle and having the currency depreciate by 50% a couple of years later and bragging about how "MY BRONCO IS STILL WORTH WHAT I PAID!" is a self-serving mental fallacy. If an identical replacement in 2024 now cost 75K then you lost 50% for the opportunity to get 3 years of fun memories in your vehicle, you are not at "break even" because your new bronco cost 25k or 50% more, so you need to come up with 50% more cash. Wage inflation has not gone up 50% since 2021, perhaps only 10-15%, so really you're out about 35%.
Long story short cars are not investments. Even though MSRPs are being discounted used values are also dropping hard. It would be interesting to see graphs of the two plotted over the last year by trim (Badlands, Wildtrak, Black Diamond, etc) and see which is dropping faster. Back in 2022 and early 2023 when MSRPs were rising due to excess demand and constrained supply you did have a situation whereby used values were rising, but that is no longer the case, so I'd expect to see that line decelerating hard along with new sale prices.
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I'm no economist but regardless of currency valuation I paid 55k for my 21 back in 21...at 2% interest. To buy that same trim level today at MSRP is 64k...and the interest rate is much higher. Had I have kept my Bronco, I would not have bragged about it holding REsale value (because it didn't...), but had I have kept it I still would be ahead of the people buying the same trim level today because they'd be into it for well over 10 grand more to buy the same thing (and if they have a long-term loan at a crazy interest rate, that number would be much higher). As others have pointed out, those who buy their Broncos to keep them won't ever have to worry about the speculations and realities of resale going up and down. Additionally, those who buy the Broncos to keep them probably couldn't care less about what they're worth to others because they're keeping them. Going with the dive regulator story that you shared, Yes the price went up a lot but if we're comparing that to the Bronco at least the people paying the $9,000 more for the trim level that I had these days are at least getting a much better steering rack and tie rods...I also suspect that although the regulator from decades ago was well-built, certain advancements that have been made since then make the newer units more desirable in many ways. Regardless of resale or wholesale or MSRP or ADM my cautionary tale to others is to simply to first make sure that whatever car you buy is a fit for your specific needs and wants...because if it isn't, and you want to sell it thereafter, you're likely to lose your shirt unless you either landed a great deal brand new OR unless you let someone else get wrecked on depreciation/upgrades first and then sold theirs for way less than they had into it.
This is a good scenario if you leased. Nothing is āunderwaterā. Lease again or negotiate to purchase the vehicle at market value. In any scenario, you paid less depreciation than actual during the term.
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Airlines and travel site 100% do this. Always clear your browser history when booking any travel.
I paid MSRP for my 2 door, 7 speed Badlands. I bought mine for keeps, so resale doesn't worry me that much. Reliability down the road will be my touchstone.
Manheim still shows my Base at 3k more than I paid for her even with 15k miles on the clock.
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