Used Value Dropping Fast

[FordFamily4Fun]

totally agree to that... Leasing is a RIP OFF go watch Dave Ramsey

Yeah, leasing will keep you always having payments - plus interest. I see it making sense if you are very tight on cash flow, don't have significant down money and have something that you can trade that is about to fall apart but they will give you $2k down on the lease of an inexpensive car (been there). A lease on an inexpensive new car will give you very low payments. Then ideally over the next 3-5 years your financial situation improves and you can have enough money to put down to buy and keep payments reasonable so you eventually own and have no payments for some years. When you are in that tight financial situation where you can only afford, say, to buy a $10k car with high mileage you will get hammered on repair costs over a 5-8 loan if you bought. A new inexpensive leased car will be under warranty and no miles. In that situation it makes sense. If you can only afford a new $5Ok vehicle if you lease it, you should instead be buying something new for $30-35k with good money down to keep payments down to eventually own with no payments.

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[VailBronco]

Two weeks ago I bought a 22 OBX SAS LUX HT, with 11k miles right at Kelly Blue Book trade-in Value. I was watching values go down for a couple months and thought I was getting ahead of the curve at least a little but apparently not because now KBB trade-in is already over $5k lower. I agree KBB is not the best source for values, so just using it as a data point here. Anyone out there still getting offers above what you paid, you should probably jump on that! Sorry to anyone who paid ADM and trying to get out right now, going to be tough. Back to reality that vehicles are depreciating assets.

 

[huntski54]

I was just thinking the same thing. Last week I wanted to see if I could score a deal on two cars by trading my Bronco in. I am very right-side-up on it so I thought why not check it out? '23 Big Bend with 7250 miles on it and they initially offered me 36k trade-in. I told them to kick rocks and they came back with 40k and wouldn't go any higher.

original sticker of$44250. Happy to keep it but long gone are the days of flipping new cars for serious cash.

 

[GroovyGeek]

Yeah, leasing will keep you always having payments - plus interest. I see it making sense if you are very tight on cash flow, don't have significant down money and have something that you can trade that is about to fall apart but they will give you $2k down on the lease of an inexpensive car (been there). A lease on an inexpensive new car will give you very low payments. Then ideally over the next 3-5 years your financial situation improves and you can have enough money to put down to buy and keep payments reasonable so you eventually own and have no payments for some years. When you are in that tight financial situation where you can only afford, say, to buy a $10k car with high mileage you will get hammered on repair costs over a 5-8 loan if you bought. A new inexpensive leased car will be under warranty and no miles. In that situation it makes sense. If you can only afford a new $5Ok vehicle if you lease it, you should instead be buying something new for $30-35k with good money down to keep payments down to eventually own with no payments.

There are situations where leasing makes sense... There used to be times in the past where you could get better financing terms on leasing than buying. You then lease the car knowing very well that you will buy it in the end so you don't care about mileage limits and wear and tear assessments.

These days if I am driving a car off the lot it is only because I have written a check for the full value. If I can't do that I don't buy. And I buy no more frequently than once every 10 years.

 

[Now I Go Bronco]

So you got ripped off but you have a lot of money and that makes it ok, hey if that’s ok with you that’s ok with me but you still got ripped off. Facts are facts and life as you poetically waxed for me has so very little to do with owning a bronco but I’m not bending over for anyone and being taken advantage bc my spiritual 4x4 taken me down the rainbow bridge to Valhalla. It’s a truck that’s all

I don’t think they were trying to impress you.

 

[Surfnbike]

Ya, 9% tax here and that hurts when it's something like a loaded out vehicle.
We do get a bit of a break when trading in, you pay the tax on the difference between trade in value and the one you are buying.

Not in California!

 

[PrepVet]

My Bronco was my first and last lease. I wasn't trying to keep costs down upfront but I wasn't sure what I was getting (in terms of the reliability and quality of the Bronco itself) and wanted to have an out if the thing was a steaming pile. Although mine is not, it does have it quirks. My concern was getting a first model year of a completely new car. They are know for being problematic, no matter the manufacturer. And I have no problem with my logic there.

Here is where my mistake(s) on the lease comes in.

1)I let my down payment and ordering deposits slide as extra cash on top of the required inception stuff. That money is basically gone, granted my monthly payments were slightly cheaper.
2)Then I didn't fully understand the way taxes and the payment were setup and listed separately. That was completely on me by not asking because I made the assumption I did understand it. So it was my payment PLUS and extra 5.5% every payment.
3)Then the part that is really going to pump me in the poop shoot this November. If I intend to buy the car at the end of the lease. I have my known fixed "value" amount, which is just under $30g at the end, but interest rates are freaking stupid now.

If I would have just bought it with financing in NOV of 2021 I would be sitting with a decent percentage. And this unlikely would be a concern as it mostly likely would be staying. Nope, not now a days. That is life but it is really making me question keeping it. If I still had my Expy EL it would be gone for sure. Based completely on the awful state of the economy and interest rates. Not the car itself. I can happily live without another toy. But as it has fallen into the familytruckster role I think it makes sense to keep it based solely on I know where all 17k miles have come from and the end value seems reasonable based on the fact I ordered it how I wanted it. A better fit car (Expy Max or Yukon XL) for my family would not be at that same price point with similar miles. Nowhere near it in fact. Probably close to, if not more than, double. It's just a crappy situation I have myself in with the lease term coming up soon.

 

[Meinbeast]

There are situations where leasing makes sense... There used to be times in the past where you could get better financing terms on leasing than buying. You then lease the car knowing very well that you will buy it in the end so you don't care about mileage limits and wear and tear assessments.

These days if I am driving a car off the lot it is only because I have written a check for the full value. If I can't do that I don't buy. And I buy no more frequently than once every 10 years.

Two weeks ago I bought a 22 OBX SAS LUX HT, with 11k miles right at Kelly Blue Book trade-in Value. I was watching values go down for a couple months and thought I was getting ahead of the curve at least a little but apparently not because now KBB trade-in is already over $5k lower. I agree KBB is not the best source for values, so just using it as a data point here. Anyone out there still getting offers above what you paid, you should probably jump on that! Sorry to anyone who paid ADM and trying to get out right now, going to be tough. Back to reality that vehicles are depreciating assets.

Been watching for a few weeks now and seeing pre-owned Broncos sit for a while and dropping. Surprised only in the sense that the price for a new one keeps going up.

I could get a new Wildtrak with hard top and lux package, pay 68k and wait...or I can get a CPO Wildtrak with 18k miles, lux package, roof rack, hard top, tailgate and certified until 7/2029 for 51k...

Picked up my CPO Wildtrak yesterday and holding for the long term...

 

[voxel]

If you can find one with a hard top, decent options, miles and SAS, under $55k, he will buy it. We're struggling to find one for that sort of money in the southeast.

Two Rivers Ford I think. Awesome guys,. I had a Everglades order at MSRP (and no BS) from them but picked up a Heritage instead.

 

[RustysBronco]

Two Rivers Ford I think. Awesome guys,. I had a Everglades order at MSRP (and no BS) from them but picked up a Heritage instead.

Sorry needs to be a 4 door. Forgot to make note of that.

 

[Alienpilot]

I have been trying to sell mine. It's a 2023 2DR Badlands. Asking $48K and it doesn't even have 6,000 miles on it. Delivered 12/22.
Beautiful Bronco but I've ventured into the F150 Coyote scene.

Every time I went to Caravan, they offered me $2,000 less than I owed on it.

I priced the same exact Bronco on ford.com and it's $61,000 Plus.

Huge bargain at only $48K ........

 

[mpeugeot]

I have been trying to sell mine. It's a 2023 2DR Badlands. Asking $48K and it doesn't even have 6,000 miles on it. Delivered 12/22.
Beautiful Bronco but I've ventured into the F150 Coyote scene.

Every time I went to Caravan, they offered me $2,000 less than I owed on it.

I priced the same exact Bronco on ford.com and it's $61,000 Plus.

Huge bargain at only $48K ........

Did you try your dealership for trade-in value? My dealer actually gave me a decent offer on my 2 door 2023 OBX 2.7 high package ($49k) with 5k miles. Which turned into a F-150 XL 5.0 STX 4wd with rear locker. When all was done, I did really well, $3k under MSRP and got an extra $2k off from Ford via a private offer.

 

[broncobase1]

I just got an update from CARVANA three days ago, still offering $2000 more than the MSRP I paid for my Base Bronco two years ago. Of course the value will be going down that goes without saying. At one year old they were offering $10K more than I paid!! This is for a Base bronco with the only options being Modular bumper and Aux switches. I'm not selling however, love the Bronco.

 

[MNBigfoot]

I just got an update from CARVANA three days ago, still offering $2000 more than the MSRP I paid for my Base Bronco two years ago. Of course the value will be going down that goes without saying. At one year old they were offering $10K more than I paid!! This is for a Base bronco with the only options being Modular bumper and Aux switches. I'm not selling however, love the Bronco.

Probably has a lot to do with the fact that it's the more desirable 4 door.

 

[Poppavein]

Probably has a lot to do with the fact that it's the more desirable 4 door.

Probably true.
I’ve had SUVs since the 80s, Cherokees and a Range Rover.
My kids are grown, I don’t need a 4 door, and most Broncos are automatics. I’m probably a minor demographic with my demand for 2 door and a manual. Very rare.

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