Why are they saying Bronco's resale value is so terrible?

[aFordOwner]

“They” always seem to have a lot to say.

“They” sure do.

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[BC overlanding]

Comparing a Wildtrak to an similarly priced Rubicon, they are saying the Bronco will depreciate double the amount of a Wrangler ($27k over 5 years vs $13k)?

I know there's a shortage now and you can sell a used one above MSRP, but I was planning to keep mine long term (5+ years) so now I'm a little concerned.

THEY

 

[Fordmanbob]

"THEY" have no idea what the market will bring in a few years.

This chip shortage isn't going to get better for awhile. The manufacturer has said they will slow production in 2023

 

[DesertDweller]

I would say they're predicting such high depreciation numbers because Fords in general tend to depreciate quite a bit thanks to their not so stellar track record and being perceived by the general public as unreliable. I would think just based on the amount of off-roading equipment on these they should hold more value, but only time will tell.

 

[Bob 07064]

I don't think that there is enough data available for anyone to have any clue about this matter at this time. I think you may have mistakelny took the clickbate sir.

exactly... there's a track record with the jeep. the bronco just came out. first year is normally kinda buggy and then most issues are ironed out by yr 2....

 

[SuperDave150]

Have an uncle who bought a new split-window corvette in 1963. Yes, the real deal with fuel injection. Traded it in on something “practical.” A few years ago when I saw a 63 fuelie sell for outrageous price I mentioned it to him.

He then proceeded to explain the math of cars as “investments”. Short version: Cars are HORRIBLE investments. Storage, insurance, risk, opportunity-cost, maintenance, etc. If you put an honest pencil to it you’ll discover that putting the money in a decent interest bearing account you’ll beat the car as investment many times over.

Nevertheless cars & trucks are fun & useful. So feel free to drive what you love, and love what you drive - but don’t expect it to be a good “investment.”

 

[bek]

Is that sponsored by Jeep? Just kidding. With everything going on, there isn't anyway for them to project out that far on a brand new vehicle model.

He's right.

Just my opinion, but I would expect the Bronco to hold value comparable to the Jeep in general. It's going to appeal to even more buyers with the new tech and the IFS (i.e. good on-road drivability). The Jeep will stay strong due to a cult following, and also to hardcore off-roaders, but the Bronco is going to be a long-term competitor, assuming Ford can get their QC act together. And I think they will.

 

[cbrenthus]

Have an uncle who bought a new split-window corvette in 1963. Yes, the real deal with fuel injection. Traded it in on something “practical.” A few years ago when I saw a 63 fuelie sell for outrageous price I mentioned it to him.

He then proceeded to explain the math of cars as “investments”. Short version: Cars are HORRIBLE investments. Storage, insurance, risk, opportunity-cost, maintenance, etc. If you put an honest pencil to it you’ll discover that putting the money in a decent interest bearing account you’ll beat the car as investment many times over.

Nevertheless cars & trucks are fun & useful. So feel free to drive what you love, and love what you drive - but don’t expect it to be a good “investment.”

This got me to thinking and I crunched some numbers... The 1963 Corvette had an MSRP of 4257 for the coupe and 480 for fuel injection (from what I can find) so 4737 with no other options. So Let's say $5,000 out the door...

$5,000 in 1963 is about $49K today, which makes sense considering vehicle MSRPs these days and all of the options they come with.

I checked a few sites to see what a '63 Vette would be worth today, including Hotcars (A site I can't stand) and Hagertys. Looks like it would be somewhere between $50K for a vehicle that needs some TLC and $200K for a mint condition Vette.

If you invested the $5000 in 1963 and earned a steady interest rate for the last 60 years you would have:
4% - $52,600
7% - $290,000
10% - $1,520,000

Probably the best calculator would be to say that if you made 5% on the $5K from 1963 to 1983 when the DOW was created, you'd have $13,266. If you invested that in the stock market and matched the DOW for the last 40 years, you would have 30 times the original investment, about $400K.


None of the numbers above take into account yearly licensing, registration, maintenance, and insurance. The assume the car was purchased and put into a bubble for 60 years. Therefore I conclude that, even though they can fetch some great prices today, a 1963 corvette was not a good investment

 

[cbrenthus]

As for Wrangler vs Bronco resale numbers, it will be interesting to see what happens. Wranglers have held their value for a long time, but they have also had a monopoly on the market for 4x4s with removable doors and roof. Once we start seeing as many Broncos on the roads as Wranglers (and somedays I do), I think the resale for both will start to come down a bit

 

[BuckBronco]

There was an article posted on this forum yesterday about this. I thought this was the same post until I realized it said the opposite of yesterdays post. Truth is, no one can predict the future but funny how we try.

https://www.bronco6g.com/forum/thre...-of-kbbs-best-resale-value-awards-list.67915/

 

[amazingjason]

Comparing a Wildtrak to an similarly priced Rubicon, they are saying the Bronco will depreciate double the amount of a Wrangler ($27k over 5 years vs $13k)?

I know there's a shortage now and you can sell a used one above MSRP, but I was planning to keep mine long term (5+ years) so now I'm a little concerned.

The only way to relieve your concern is to sell it now.
Jason

 

[BlueBronco]

The only way to relieve your concern is to sell it now.
Jason

FYI, OP's original post was from over 16 months ago. Today seems to be dead post resurrection day.

 

[amazingjason]

FYI, OP's original post was from over 16 months ago. Today seems to be dead post resurrection day.

If he had taken my advice, sold it, and invested the money, I guess he would still be behind because of a declining stock market and inflation…

Jason

 

[RainbowStix]

I’m on my third one, so as one with actual sales data (not some projection that has a coin flip chance of being true), they hold their value very well

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