Maverick depreciation / resale value?

[JVolpe]

Any guesstimates for how much the Maverick will depreciate / resale value in 2-3 years time?

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[2cafn8d]

Any guesstimates for how much the Maverick will depreciate / resale value in 2-3 years time?

It's super hard to judge how things will be in a few years. The market is being weird.

 

[theek]

30% +- 5%. If you're going that way, lease.

I either lease and return or buy new and drive to the ground.

 

[medgar]

30% +- 5%. If you're going that way, lease.

I either lease and return or buy new and drive to the ground.

What is happening in the car market is a black swan event right now due to a once in a lifetime issue. The above is pretty good estimate. Since the Maverick isn't a Jeep Wrangler series, Toyota or Honda I would think 5% per year depreciation is conservative. Maybe 10%. You can always buy gap insurance to cover yourself for being underwater on your loan on day one. I hear that is all the rage now with cars.

Buy under what you can afford now without being underwater with no more than a 4 year loan and send a little extra principal payment each month. Drive it for 10 years or until it dies and repeat.

 

[MikeLawry]

I think this hyrbid is especially hard to predict resale because it can go 1 of 2 ways. EV is certainly the way of the future, so you might assume that being a hyrbrid would increase potential resale value. However, in 10 years EV tech (batteries particularly imo) will come a very long way, making "old" hybrid tech less valuable.

As a side note, unless you have 0 other debt, i think putting extra principal payments on an auto loan is rather silly.

 

[TerryE]

Any guesstimates for how much the Maverick will depreciate / resale value in 2-3 years time?

 

[r100gs91]

On a TFL YouTube video they were saying the residuals will be higher than they thought they would be.

 

[DavidS]

As a side note, unless you have 0 other debt, i think putting extra principal payments on an auto loan is rather silly.

I would generally agree, but it all depends on the numbers. If you have a 5.9% interest rate on an 84 month loan, you pay it down quickly. If you have a 0.9% interest rate on a 48 month loan, use the money on something more profitable.

And that's only taking the Maverick into account. A loan on the Maverick is very conservative in that 1.) it's generally inexpensive 2.) it has desirable features such as a truck bed 3.) it's brand new with a full manufacturer's warranty 4.) it's fuel efficient 5.) interest rates are very low right now.

If we were taking about a $60,000 used Maserati, any loan is too much and needs to be paid down immediately.

 

[SuckLemons]

If we were taking about a $60,000 used Maserati, any loan is too much and needs to be paid down immediately.

No doubt. Luxury car depreciation is real. Easy to get upside down real quick.

 

[ericjtsang]

I think it will maintain value for a while.

For most of us, our cars fall in the 24-30k range. I just don't see a truck that was already priced quite low to be "worth" 17-21k after just one year if you take a normal 30%. At that price, it's an INSANE deal for a car this practical. There is really nothing else on the used market for <17k that offers what the maverick does.

Trucks already maintain value and the price point ford is pushing will really maintain that given what else is in the market.

 

[pxpaulx]

What is happening in the car market is a black swan event right now due to a once in a lifetime issue. The above is pretty good estimate. Since the Maverick isn't a Jeep Wrangler series, Toyota or Honda I would think 5% per year depreciation is conservative. Maybe 10%. You can always buy gap insurance to cover yourself for being underwater on your loan on day one. I hear that is all the rage now with cars.

Buy under what you can afford now without being underwater with no more than a 4 year loan and send a little extra principal payment each month. Drive it for 10 years or until it dies and repeat.

It is generally tough to predict. Trucks (like any vehicle) can do better or worse in certain markets. They are popular in Minnesota and retain value - the same might not go for California or Florida.

While I won't be picking up gap insurance as we recently refi'd our home and paid our vehicles off, I've found that your auto insurance often has well priced gap insurance - generally under $10 (maybe a little more?)/month. Given you only really need gap insurance towards the start of a vehicle's life/loan, this is a better option than rolling it into financing for 48-60-72 months. Also this provides the benefit of being able to cancel at any time without the hassle of having to jump through hoops to get the balance of the value back if you end the gap contract purchased with the vehicle.

 

[MikeLawry]

I dont think what your financing has any bearing on whether or not you should pay extra towards. The 1 and only factor that matters is interest rate. Even at 5.9% i think its financially a dumb idea to pay extra when you have credit card debt getting dinged 20% or whatever on.

To take it a step further, although 5.9% is pushing it, it is often times better to actually invest excess $, rather than spend it on low interest debt.

 

[pxpaulx]

I dont think what your financing has any bearing on whether or not you should pay extra towards. The 1 and only factor that matters is interest rate. Even at 5.9% i think its financially a dumb idea to pay extra when you have credit card debt getting dinged 20% or whatever on.

To take it a step further, although 5.9% is pushing it, it is often times better to actually invest excess $, rather than spend it on low interest debt.

I agree - I'd say anything above the going credit union rates should really be avoided - right now in MN 60/72 are 2.74 or 2.99, 84 is at 3.99 - corresponding interest costs on a $25k loan would be about $1,700, $2,300 or $3,700!!! As can be seen, extending the loan beyond the 6 year mark has a substantial impact, even with a reasonably low rate.

Now, if the rates currently showing in Ford's build/price calculator stick, the 3 rates for 60 month and shorter terms are very competitive. I will absolutely be taking advantage if they are available, but behind that action is taking that money to invest in index funds, which can provide a real return (vs purchasing the truck outright). With that said, even if you aren't in that place from a financial perspective, at the Maverick pricing I would encourage buyers to take advantage of those shorter term, lower rates if available just for the interest savings. Anything above 3.9% is too high a rate - you are starting to pay a lot of interest, and that is often compounded with the longer term loans.

 

[medgar]

It is generally tough to predict. Trucks (like any vehicle) can do better or worse in certain markets. They are popular in Minnesota and retain value - the same might not go for California or Florida.

While I won't be picking up gap insurance as we recently refi'd our home and paid our vehicles off, I've found that your auto insurance often has well priced gap insurance - generally under $10 (maybe a little more?)/month. Given you only really need gap insurance towards the start of a vehicle's life/loan, this is a better option than rolling it into financing for 48-60-72 months. Also this provides the benefit of being able to cancel at any time without the hassle of having to jump through hoops to get the balance of the value back if you end the gap contract purchased with the vehicle.

Glad you will not be picking up Gap insurance now or ever

If a person needs to have gap insurance for a new car especially a Maverick that is a huge red flag that maybe I dont need this new car.

 

[Darnon]

I'm looking to finance with Digital Federal Credit Union through which the Hybrid Maverick should qualify for 1.24% for 65 months as a fuel efficient vehicle. That's a tough rate to beat for the term.

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