Ford Vehicle Resale Values

[JohnnyChingas]

I love Ford but it really seems that with the way their vehicles lose value so quickly, its not exactly the smartest thing to buy one new. I'd like to know what you all believe are the reasons for Ford's resale values sinking like quicksand.

[timmm55]

I love Ford but it really seems that with the way their vehicles lose value so quickly, its not exactly the smartest thing to buy one new. I'd like to know what you all believe are the reasons for Ford's resale values sinking like quicksand.

 

The Mustangs are quite good on resale, especially the GT. Some Fords are just average. The Crown Vic (soon to be discontinued) has heavy police duty and so their values reflect that even for civilan vehicles. Same for the Town Car (soon to be discontinued) in livery service, and the E panel trucks are sold mostly for service work.

 

It's also the number of cars sold to rental companies. That seems to "cheapen" it's image and resale value....and Ford is cutting back on that.

 

Any new car is a bad investment. Luxury cars are the worst (say, for example at best, it loses only 10% in it's first two years it's still a lot of money!)

[focus05]

It's been getting better.

 

There are two primary things that drive resale value - supply in the used car market and consumer perception.

 

The first side of resale is getting addressed. The number of Ford vehicles showing up in used car lots and drastically undercutting new car prices has decreased. With Ford not selling to rental fleets as much, there isn't a glut of used Fusions just flowing out of Hertz lots to depress the value of a used Fusion (too much supply = lower prices).

 

The second side is all about quality perception. If people perceive that a car will last longer, they consider it a better used car value and will pay more than other cars of similar age and mileage. A used Civic with 200,000 miles will often fetch as much as a similarly aged Escort with just over 100,000 miles because people expect a Civic will last longer. If Ford's quality gains continue, this perception will line up with reality and help residuals.

 

Finally, the oft unmentioned side of residuals is discounts. Most of the time, resale value is calculated off of MSRP - not including advertised manufacturer rebates. So, for example, you went to buy a Focus that MSRP'ed for $17,000. However, it was end of year clearance and they were $15,000 after manufacturer's rebates. Your three-year residual is listed as $7,000, which is 41%, as opposed to calculated out of $15,000 (what even an idiot who can't negotiate will pay) which woudl have been 47%. One is much lower than the Corolla's, one is much closer to its 50%.

 

Ultimately, the best buy is a 1-3 year old car (depending on make and model) with average or below average mileage. New cars are always going to be quickly depreciating assets.

[P71_CrownVic]

The Crown Vic (soon to be discontinued) Same for the Town Car (soon to be discontinued)

The *ONLY* vehicle that is being discontinued soon is the Ranger. And it has VERY high resale values...at least up here.

[Deanh]

The *ONLY* vehicle that is being discontinued soon is the Ranger. And it has VERY high resale values...at least up here.

Rangers are just stupid...hell almost as much used as new...go figure....Superdutys strong as well....MUST be diesel though, F-150's relitively strong....every sedan is typical but the Focus's seem strong????? ......no sedans are really strong...want to freak out...check Audis....and S class mercedes, 7 series Bimmers......they take a bigger hit than the RETAIL price of a Focus