depreciation on a 05/06 mustang
Discussion
At the moment, as with any car, the main depreciation will occur the second the car is bought. So a 1 year old low miles Mustang GT Premium which cost £27k new is available for around £20k if you shop round. That saves you £7k and takes the sting out of the depreciation.
American cars tend to lapse into a slow cycle of depreciation after that. To give you an example, In 1994 I bought a 9 year old Corvette for £7k and sold it for £6k 3 years later in 1997. That's £333 depreciation a year. I bought a Camaro Z28 for £3750 and sold it for £3000 2 years later (the prices of these are now going back up). That's £325 depreciation a year and I bought a 1998 Camaro Z28 for £10500 and sold it for £8k 4 years later. That was modified but in unmodified form it would probably have made the same money but we're talking at most £500 a year depreciation. The trick is to buy wisely to start with. In general, the newer the car, the more you will lose on it. You will lose a lot more on a V6 than a V8
These cars should drop to about £15k in 2 years then around £10k in about 5 years time. Like any car, you have to keep them looking nice but there are always going to be buyers once the car reaches it's 5th birthday. Have a look on Auto Trader for prices of used examples and also on ebay to see what they sell for.
Compared to most European cars, the Mustang will hang onto it's value due to American enthusiasts and rarity. A friend of mine had a 1994 Trans Am he paid £10000 for several years back. His father bought a new BMW 520i and told him what an idiot he was. After 2 years he sold it for £9500 and his father sold his BMW for absolute peanuts.
Add to that cheap insurance and cheap servicing costs and the Mustang is a fairly convincing proposition compared to most freefall depreciation European cars.
American cars tend to lapse into a slow cycle of depreciation after that. To give you an example, In 1994 I bought a 9 year old Corvette for £7k and sold it for £6k 3 years later in 1997. That's £333 depreciation a year. I bought a Camaro Z28 for £3750 and sold it for £3000 2 years later (the prices of these are now going back up). That's £325 depreciation a year and I bought a 1998 Camaro Z28 for £10500 and sold it for £8k 4 years later. That was modified but in unmodified form it would probably have made the same money but we're talking at most £500 a year depreciation. The trick is to buy wisely to start with. In general, the newer the car, the more you will lose on it. You will lose a lot more on a V6 than a V8
These cars should drop to about £15k in 2 years then around £10k in about 5 years time. Like any car, you have to keep them looking nice but there are always going to be buyers once the car reaches it's 5th birthday. Have a look on Auto Trader for prices of used examples and also on ebay to see what they sell for.
Compared to most European cars, the Mustang will hang onto it's value due to American enthusiasts and rarity. A friend of mine had a 1994 Trans Am he paid £10000 for several years back. His father bought a new BMW 520i and told him what an idiot he was. After 2 years he sold it for £9500 and his father sold his BMW for absolute peanuts.
Add to that cheap insurance and cheap servicing costs and the Mustang is a fairly convincing proposition compared to most freefall depreciation European cars.
Gassing Station | Mustangs | Top of Page | What's New | My Stuff