Resale Value on the Hybrid?

[Bucready]

Hi all, I ordered a Hybird XTL - Luxury Package Carbonized Gray back in early June. Fast forward now and I have since gotten a Bronco Sport.

My dealer wanted to know if I was going to cancel, almost did but then realized they would not cancel but most likely sell above MSPR once in.

So I did not cancel. Now finding out that dealers will not have any stock Hybirds for quite some time. How long, who knows.

I'm seeing some dealer markups 5,000 + above MSRP. Have also heard of one case where a dealer offered to buy back a Hybird Maverick once in.

So, if these conditions continue thru 2022, what do you think the re-sell value will be for a new Maverick with almost no miles?

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[jeffdeq]

Hi all, I ordered a Hybird XTL - Luxury Package Carbonized Gray back in early June. Fast forward now and I have since gotten a Bronco Sport.

My dealer wanted to know if I was going to cancel, almost did but then realized they would not cancel but most likely sell above MSPR once in.

So I did not cancel. Now finding out that dealers will not have any stock Hybirds for quite some time. How long, who knows.

I'm seeing some dealer markups 5,000 + above MSRP. Have also heard of one case where a dealer offered to buy back a Hybird Maverick once in.

So, if these conditions continue thru 2022, what do you think the re-sell value will be for a new Maverick with almost no miles?

Probably will be very good, but once you sell your Maverick you will have to settle for something other than another Maverick. Plus, replacing your original Maverick will cost you substantially more.
What do you gain in the long run?
I would not over think this. Just enjoy your new truck, and then in four or five years trade it in on a 2027 hybrid plugin, Lariat Limited Maverick with AWD FX/4 Off Road and 4k towing packages. People will be lined up to buy the used hybrid trade ins.

 

[kcirevam]

You will loose all profits on taxes.

 

[clavicus]

You will loose all profits on taxes.

3% in North Carolina, which still leaves a lot of that 5k (or more) for profit.

 

[JASmith]

You will loose all profits on taxes.

In Texas taxes would be 6.25%, which for a $25K vehicle would be around $1.5K. There's a big difference between a dealer getting $5K over MSRP and selling a used one where the title will have the buyer as a second owner which reduces their resale value and thus how much they are likely willing to pay.

So resale value would be good and losses would be minimal, but if it was just going to sit in your driveway in the hopes of flipping it for a profit, I don't think it would be worth the effort or risk.

The only exception I can think of would be a first edition one or something really hard to find, otherwise I think you are in for a rude awakening expecting $5K over sticker as a private seller of an already titled vehicle.

 

[fourwheelsandadream]

You will loose all profits on taxes.

Not true. You’re only taxed on your capital gain. Buyer would pay sales tax

 

[JASmith]

Not true. You’re only taxed on your capital gain. Buyer would pay sales tax

He is the buyer when purchasing it from the dealership in which they will title it in his name and taxes would be due.

The buyer would also have to pay sales tax again, which is kind of silly as its double-taxation.

 

[fourwheelsandadream]

He is the buyer when purchasing it from the dealership in which they will title it in his name and taxes would be due.

The buyer would also have to pay sales tax again, which is kind of silly as its double-taxation.

Correct i see what you mean now. Was misinterpreting what you said. I was inferring him selling the car at a greater price than the out the door price (taxes fees etc.) and then he’d just have to pay tax on his gain above that

 

[Jakb]

He is the buyer when purchasing it from the dealership in which they will title it in his name and taxes would be due.

The buyer would also have to pay sales tax again, which is kind of silly as its double-taxation.

Also add in how long it would take to get the new title. Lots of states are backlogged, so you might have to let it sit in your driveway for 3 months before you can re-sell.

 

[Fast64Ranchero]

I'd offer to let the dealer keep it in trade for something for your new Bronco. (Protection plan, new larger tires, accessories) they are going to mark up a Hybrid and if you can make some type of deal without having to purchase it you both win.

 

[Darnon]

I'd offer to let the dealer keep it in trade for something for your new Bronco. (Protection plan, new larger tires, accessories) they are going to mark up a Hybrid and if you can make some type of deal without having to purchase it you both win.

Except you don't really have any leverage to get them to give you more money for not buying a truck that they didn't have any obligation to sell you.

 

[Rexus99]

Probably will be very good, but once you sell your Maverick you will have to settle for something other than another Maverick. Plus, replacing your original Maverick will cost you substantially more.
What do you gain in the long run?
I would not over think this. Just enjoy your new truck, and then in four or five years trade it in on a 2027 hybrid plugin, Lariat Limited Maverick with AWD FX/4 Off Road and 4k towing packages. People will be lined up to buy the used hybrid trade ins.
[/QUOTe

Also add in how long it would take to get the new title. Lots of states are backlogged, so you might have to let it sit in your driveway for 3 months before you can re-sell.

You can walk out the door with the title. I bought a car in Texas, paid for it along with a fee of $75 which was basically a bill of sale so I could drive it. I paid for the car, took all the paper work, title signed over to me from the dealership, and left. Actually did not pay "dealer fees" usually charged for having them handle all registration and collecting taxes. Did the same with an automobile I bought in Colorado. Most dealers are not "required" to collect taxes owed to the state. It is merely a service they charge you dearly for. Some states might require it but many cars are bought by out of state buyers. My state requires me to register, title and pay taxes within 30 days of purchase. Paying capital gains will be a joke. Another huge problem not addressed here yet. What kind of financing will you offer? Dealerships have you strangled on that. A local credit union or bank is going to have a hard time loaning money on an automobile priced over MSRP. So not only do you not have to find a buyer, you have to find a cash buyer. You might be able to find a workaround on the taxes, but not financing.

 

[Bucready]

Probably will be very good, but once you sell your Maverick you will have to settle for something other than another Maverick. Plus, replacing your original Maverick will cost you substantially more.
What do you gain in the long run?
I would not over think this. Just enjoy your new truck, and then in four or five years trade it in on a 2027 hybrid plugin, Lariat Limited Maverick with AWD FX/4 Off Road and 4k towing packages. People will be lined up to buy the used hybrid trade ins.

Basically already replaced the Maverick with a Bronco Sport BB. Ended up being about $4000 more so already gone down that road but sure didn't settle. The BS is a fun one to drive. Not over thinking but always like to think outside the box.

 

[Bucready]

In Texas taxes would be 6.25%, which for a $25K vehicle would be around $1.5K. There's a big difference between a dealer getting $5K over MSRP and selling a used one where the title will have the buyer as a second owner which reduces their resale value and thus how much they are likely willing to pay.

So resale value would be good and losses would be minimal, but if it was just going to sit in your driveway in the hopes of flipping it for a profit, I don't think it would be worth the effort or risk.

The only exception I can think of would be a first edition one or something really hard to find, otherwise I think you are in for a rude awakening expecting $5K over sticker as a private seller of an already titled vehicle.

Two years ago, 100% agree. You always lost $$$ driving a new car off the lot. Today is stupid. Cars have appreciated to silly proportions. Go on Carvana and a low mile vehicle that is basically new will get more than some at MSRP at the dealer. I don't get it. I just got a new Bronco Sport w/big bend package & moonroof, walked out the door paying $34,840 (including tax). This was 3 weeks ago, Carvana just offered us $37,500. $2,660 more. And these vehicles have already been titled by a previous owner. I do agree with you, I do not believe someone would pay 5K over MSPR from a private seller but for some reason they will on the carvana site. Doesn't make sense.
BTW: I'm not selling the BS to Carvana, my wife loves this vehicle too much.

 

[JASmith]

I just got a new Bronco Sport w/big bend package & moonroof, walked out the door paying $34,840 (including tax). This was 3 weeks ago, Carvana just offered us $37,500. $2,660 more.

And Carvana has to make a profit, that is weird. I guess there are people that just don't want to wait, and appreciate that Carvana can ship anywhere and is trusted.

Still even in that scenario, at least in TX after taxes you'd pay for the vehicle when selling it you'd have only made $500 or so.

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