2016 Mustang GT Depreciation
Discussion
Auto Express reckoned that the new Mustang would lose 50% or so in the first 3 years. But we are still in a place where lightly used 12 month old cars are still asking list price (or thereabouts).
http://www.autoexpress.co.uk/ford/mustang
The 'waiting list' will surely largely disappear soon as orders better match the supply so do we expect the use prices to fall sharply at that point to get 'back on track' for the 50% figure ? If so, then buying a 12 month old one for list (say £36k) would be a bad idea as it could be worth maybe £20k in two years time ? All of the 'new car' depreciation but none of the joy of actually having owned it from new ?
http://www.autoexpress.co.uk/ford/mustang
The 'waiting list' will surely largely disappear soon as orders better match the supply so do we expect the use prices to fall sharply at that point to get 'back on track' for the 50% figure ? If so, then buying a 12 month old one for list (say £36k) would be a bad idea as it could be worth maybe £20k in two years time ? All of the 'new car' depreciation but none of the joy of actually having owned it from new ?
Definitely something I've been keeping an eye on, and there are a few things at play as well. Like you say, the prices are probably being kept high because of the waiting list, although this is already down quite a bit. The cheapest I can see is £31.5k - and that's a private seller with a bit of a dodgy ad, for a 1.5 year old one.
Another thing to consider is that any cars registered after 1st April 2017 are going to have tax of £140 rather than £515 which will make later models more desirable, and perhaps hit the prices of older models. You can see this but in reverse for the Nissan 350z - older ones are band K instead of M. However this might not actually be the case for GT Custom Pack variants as those now have a list price of over £40k due to needing to pay an extra £1k for the first years tax - meaning they'll pay £450 road tax; that depends on the colour though - Race Red and Grabber Blue come in at £39,380 and so wouldn't have this problem.
Finally, do we need to consider potentially getting screwed over by any new emissions legislation that comes in? There's nothing on the horizon now, but the electric revolution is probably just around the corner -- as evidenced by sniffs of a hybrid Mustang!
FWIW, the PCP over 2-year that I was offered on a GT w/ Custom Pack had a GFV of £19,973 - Ford have obviously hedged their bets a bit there!
Another thing to consider is that any cars registered after 1st April 2017 are going to have tax of £140 rather than £515 which will make later models more desirable, and perhaps hit the prices of older models. You can see this but in reverse for the Nissan 350z - older ones are band K instead of M. However this might not actually be the case for GT Custom Pack variants as those now have a list price of over £40k due to needing to pay an extra £1k for the first years tax - meaning they'll pay £450 road tax; that depends on the colour though - Race Red and Grabber Blue come in at £39,380 and so wouldn't have this problem.
Finally, do we need to consider potentially getting screwed over by any new emissions legislation that comes in? There's nothing on the horizon now, but the electric revolution is probably just around the corner -- as evidenced by sniffs of a hybrid Mustang!
FWIW, the PCP over 2-year that I was offered on a GT w/ Custom Pack had a GFV of £19,973 - Ford have obviously hedged their bets a bit there!
ad13 said:
Definitely something I've been keeping an eye on, and there are a few things at play as well. Like you say, the prices are probably being kept high because of the waiting list, although this is already down quite a bit. The cheapest I can see is £31.5k - and that's a private seller with a bit of a dodgy ad, for a 1.5 year old one.
Another thing to consider is that any cars registered after 1st April 2017 are going to have tax of £140 rather than £515 which will make later models more desirable, and perhaps hit the prices of older models. You can see this but in reverse for the Nissan 350z - older ones are band K instead of M. However this might not actually be the case for GT Custom Pack variants as those now have a list price of over £40k due to needing to pay an extra £1k for the first years tax - meaning they'll pay £450 road tax; that depends on the colour though - Race Red and Grabber Blue come in at £39,380 and so wouldn't have this problem.
Finally, do we need to consider potentially getting screwed over by any new emissions legislation that comes in? There's nothing on the horizon now, but the electric revolution is probably just around the corner -- as evidenced by sniffs of a hybrid Mustang!
FWIW, the PCP over 2-year that I was offered on a GT w/ Custom Pack had a GFV of £19,973 - Ford have obviously hedged their bets a bit there!
The 2 year PCP deal I signed a few months back was £21000 final payment?Another thing to consider is that any cars registered after 1st April 2017 are going to have tax of £140 rather than £515 which will make later models more desirable, and perhaps hit the prices of older models. You can see this but in reverse for the Nissan 350z - older ones are band K instead of M. However this might not actually be the case for GT Custom Pack variants as those now have a list price of over £40k due to needing to pay an extra £1k for the first years tax - meaning they'll pay £450 road tax; that depends on the colour though - Race Red and Grabber Blue come in at £39,380 and so wouldn't have this problem.
Finally, do we need to consider potentially getting screwed over by any new emissions legislation that comes in? There's nothing on the horizon now, but the electric revolution is probably just around the corner -- as evidenced by sniffs of a hybrid Mustang!
FWIW, the PCP over 2-year that I was offered on a GT w/ Custom Pack had a GFV of £19,973 - Ford have obviously hedged their bets a bit there!
5ohmustang said:
While I can only speak for myself and other mustang owners I have met. Buying and owning a mustang is more than just having a fast car.
It is a soulful experience, the mustang v8 is something you generally do not sell for the next car of the moment.
I agree, bought mine new in 2006 and still own it It is a soulful experience, the mustang v8 is something you generally do not sell for the next car of the moment.
chr15b said:
Aren't they making some changes to them this year or next, that might have a bit of an impact on existing model prices.
This is why I deferred my deposit to a 2018 model.460bhp estimated, hydro suspension, active exhaust, updated interior with 12" lcd main binnacle amongst other things.
On photos no where near as nice as now. In flesh lovely apparently.
New, unregistered cars asking around £40k. Quite a few on PH classifieds (assuming these are genuine and the physical cars really are for sale). So why would someone pay £38k for a 12 month old pre owned one ?
If PCP deals are quoting £20k as the final payment after 2 years what do we think the cars will really be worth after 2 years. If it was £28k then who would hand the car back ? Surely you'd buy it ? Are PCP final payments not supposed to reflect roughly what the car is actually worth at the end - so what you have paid for 2 years is depreciation and interest ?
I can't quite fathom what is going on here. Maybe the Mustang defies depreciation ?
If PCP deals are quoting £20k as the final payment after 2 years what do we think the cars will really be worth after 2 years. If it was £28k then who would hand the car back ? Surely you'd buy it ? Are PCP final payments not supposed to reflect roughly what the car is actually worth at the end - so what you have paid for 2 years is depreciation and interest ?
I can't quite fathom what is going on here. Maybe the Mustang defies depreciation ?
ad13 said:
Definitely something I've been keeping an eye on, and there are a few things at play as well. Like you say, the prices are probably being kept high because of the waiting list, although this is already down quite a bit. The cheapest I can see is £31.5k - and that's a private seller with a bit of a dodgy ad, for a 1.5 year old one.
Another thing to consider is that any cars registered after 1st April 2017 are going to have tax of £140 rather than £515 which will make later models more desirable, and perhaps hit the prices of older models. You can see this but in reverse for the Nissan 350z - older ones are band K instead of M. However this might not actually be the case for GT Custom Pack variants as those now have a list price of over £40k due to needing to pay an extra £1k for the first years tax - meaning they'll pay £450 road tax; that depends on the colour though - Race Red and Grabber Blue come in at £39,380 and so wouldn't have this problem.
Finally, do we need to consider potentially getting screwed over by any new emissions legislation that comes in? There's nothing on the horizon now, but the electric revolution is probably just around the corner -- as evidenced by sniffs of a hybrid Mustang!
FWIW, the PCP over 2-year that I was offered on a GT w/ Custom Pack had a GFV of £19,973 - Ford have obviously hedged their bets a bit there!
The tax thing is not necessarily true. Mine being an auto with premium paint has a list price nearly £42k so would attract the extra £310 meaning a much higher first tax followed by £450 per year.Another thing to consider is that any cars registered after 1st April 2017 are going to have tax of £140 rather than £515 which will make later models more desirable, and perhaps hit the prices of older models. You can see this but in reverse for the Nissan 350z - older ones are band K instead of M. However this might not actually be the case for GT Custom Pack variants as those now have a list price of over £40k due to needing to pay an extra £1k for the first years tax - meaning they'll pay £450 road tax; that depends on the colour though - Race Red and Grabber Blue come in at £39,380 and so wouldn't have this problem.
Finally, do we need to consider potentially getting screwed over by any new emissions legislation that comes in? There's nothing on the horizon now, but the electric revolution is probably just around the corner -- as evidenced by sniffs of a hybrid Mustang!
FWIW, the PCP over 2-year that I was offered on a GT w/ Custom Pack had a GFV of £19,973 - Ford have obviously hedged their bets a bit there!
A basic manual fastback GT is now £38k without any options or paint. Doesn't take much to push it over £40k
djc206 said:
The tax thing is not necessarily true. Mine being an auto with premium paint has a list price nearly £42k so would attract the extra £310 meaning a much higher first tax followed by £450 per year
Is the extra £310 per year not just for the first 5 years and then a simple £140 each year from year 6 onwards ? OddCat said:
Is the extra £310 per year not just for the first 5 years and then a simple £140 each year from year 6 onwards ?
Correct. But given that we're talking about initial depreciation I don't think the year 6 onwards cheap tax will affect first 2-3 years depreciation much if at all. The way I'm looking at it the lack of depreciation can be explained by two factors: 1) the waiting list and 2) new cars keep increasing in price and it's likely that the 2018 facelift cars will see another price jump so an older car at close to original list is still several thousand less than a new car. My car picked up last month was ordered at £38,705. List on the exact same car is now £41,775. 8% increase since June last year.
djc206 said:
The tax thing is not necessarily true. Mine being an auto with premium paint has a list price nearly £42k so would attract the extra £310 meaning a much higher first tax followed by £450 per year.
A basic manual fastback GT is now £38k without any options or paint. Doesn't take much to push it over £40k
Good point - I forgot about people choosing automatics... and of course the convertibles are also more expensive.A basic manual fastback GT is now £38k without any options or paint. Doesn't take much to push it over £40k
I didn't know it was only for the first 5 years on the £310 surcharge though, that may well make a difference.
Depreciation on these is compele guesswork, as these cars just haven't be sold before in the UK. However the early signs are promisng that they hold their value well, probably due to the limited availability and long waiting lists. And the new cost being low relative to it's competitors.
PCP will have taken a cautious view on the depreciation, after all they don't want to get a car back effectivley in negative equity. The new facelifted version desitned for these shores next year will certainly have an efffect on used prices, BUT a lot will depend on how these are priced, as yet unannounced.
If they cost roughly the same, then no doubt the gen 1 models will take a hit. But if they are a lot more then perhaps not so much. My view is that Ford has priced the Gen 1 low to crack the UK/European market, which they've done with a lot more success thna they probably expected. This gives them a mandate to push up pricers for the Gen 2, which makes even more sense for them with the pound deprciating so heavily agaisnt the dollar in the last 6 months or so.
It's a similar strategy employed by Nissan when the launched the GTR. You could buy a Gen 1 car brand new for about £56k in 2009, and everyone raved about what a bargain it was. Now a new GTR is min £80k. Still decent value, but not the bargain it once was.
PCP will have taken a cautious view on the depreciation, after all they don't want to get a car back effectivley in negative equity. The new facelifted version desitned for these shores next year will certainly have an efffect on used prices, BUT a lot will depend on how these are priced, as yet unannounced.
If they cost roughly the same, then no doubt the gen 1 models will take a hit. But if they are a lot more then perhaps not so much. My view is that Ford has priced the Gen 1 low to crack the UK/European market, which they've done with a lot more success thna they probably expected. This gives them a mandate to push up pricers for the Gen 2, which makes even more sense for them with the pound deprciating so heavily agaisnt the dollar in the last 6 months or so.
It's a similar strategy employed by Nissan when the launched the GTR. You could buy a Gen 1 car brand new for about £56k in 2009, and everyone raved about what a bargain it was. Now a new GTR is min £80k. Still decent value, but not the bargain it once was.
Interesting the price must have gone up, I ordered a GT Manual with shaker pro, climate seats, reverse parking, magnetic paint and stripes and it (just) came in under the magic £40k price on the road so i would be on the £140 tax. This was only a month ago ...
EDIT -> Additional info ..
Looks like the £40k tax barrier is based on the List Price ... not the On the road price so the on the road price quoted by ford so the tax barrier does not include the 2K initial tax or delivery etc ... so you can take at least 2k off the OTR price which should make it easy to get a 'Stang in the £140 tax area from new !
https://www.gov.uk/government/publications/vehicle...
EDIT -> Additional info ..
Looks like the £40k tax barrier is based on the List Price ... not the On the road price so the on the road price quoted by ford so the tax barrier does not include the 2K initial tax or delivery etc ... so you can take at least 2k off the OTR price which should make it easy to get a 'Stang in the £140 tax area from new !
https://www.gov.uk/government/publications/vehicle...
Edited by IronPaul on Wednesday 12th April 12:26
Edited by IronPaul on Wednesday 12th April 12:27
Placed an order for mine in Jan 2015. It arrived Jan 2016. A year later the same car is £5k more with still a long wait.
That's why the secondhand prices have not plummeted. .....yet.
Only last week a trader offered 30k for mine. Not bad considering that's only 3,000 quid to own a great car for 14 months and do over 11,000 miles in it.
That's why the secondhand prices have not plummeted. .....yet.
Only last week a trader offered 30k for mine. Not bad considering that's only 3,000 quid to own a great car for 14 months and do over 11,000 miles in it.
American stuff does well in the uk in terms of price. My old c6 corvette would pretty much make now what it made when I sold it 6 odd years ago.
The used car market is weird at the minute tho....dealer near me is asking £27k for a 3 year old 335d, how much were they new? Not much more with a heathy discount I'd wager. Look at golf gtd's as well.
The used car market is weird at the minute tho....dealer near me is asking £27k for a 3 year old 335d, how much were they new? Not much more with a heathy discount I'd wager. Look at golf gtd's as well.
irish boy said:
The used car market is weird at the minute tho....dealer near me is asking £27k for a 3 year old 335d, how much were they new? Not much more with a heathy discount I'd wager. Look at golf gtd's as well.
Hmmm. I think maybe the whole PCP "guaranteed future value (GFV)" thing is distorting the market. The manufacturers set the GFV high so the monthly cost of the PCP is less (because the notional depreciation that is being paid for by PCP is less). That means they have to try to keep the general used values equally high. Such manipulation will end in tears for the manufacturer finance companies because a combination of saturation point (too many ex PCP cars and not enough buyers of those cars at the inflated used prices) and further economic headwinds and interest rate increases (low interest rates have also been making PCP artificially 'cheap') will cause the whole thing to fall apart. Too many people driving cars they really shouldn't be able to afford. A 3 year old 335d is a £20k car.Re Mustangs, yes, a different animal. Waiting lists, increasing list price, limited supply means they don't (yet) follow the normal rules. More seem to be becoming available now though on the used market. Mostly low miles. Many people must have bought them as a trophy thing or a toy - not a daily user.
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