why does a 2006 mustang convertible lose so much value so fast?...it is scary how fast it depreciated..?

Question

I feel like i overpayed for something that really has not that much value. P.S. it is not a GT but it has all the whistles and bells..

Answer 1

Welcome to the car world.

Answer 2

If it's not the GT then I'm afraid it isn't as desireable as the GT and as a used car it competes against it.

In general the Mustang is a car which only sells to Ford enthusiasts, it doesn't sell well on direct merit because it has a solid rear axle and leaf springs, so it has very questionable handling compared to other sporty cars which have much better handling and can get the power down out of corners.

Ford continue to make some really questionable design choices, and then act all surprised when they get called on them. The new Ford Edge has 265hp and solid disks front and rear, that means the brakes heat up and fail more quickly than competing vehicles, even harder to understand with an automatic that never gives the brakes a rest. Hot brakes don't stop you, they also recover slower and wear out faster. The Nissan Xterra has similar power but uses ventilated disk brakes front and rear. What did they save to give us bad brakes? $40? I haven't seen another big vehicle with solid front disks in years.

Sorry, Ford just aren't trustworthy right now. They are making bad vehicles and ignoring years of criticism.

Answer 3

All new cars depreciate. When you buy the car, you pay the dealer markup, taxes, license fees, destination fees, etc.. The instant you drive the car off the lot, all of that money is gone. From a dealer standpoint, why would he give you more for the car than what he paid to get the car on the lot in the first place?

Some cars are immediately judged as poor resellers over the long term and they depreciate even quicker. Some cars depreciate slower than others and you will find that after two years of ownership, you can actually sell them for more than you owe on your 5 year car loan (not much more but at least you will not lose money).

In your case, Mustangs are overpriced. The market will automatically adjust for this when it comes time to determine resell value. Don't get me wrong, I like them; however, I know from experience that the V6 will depreciate quicker than the GT which will depreciate quicker than the Saleens, etc...

A general rule of thumb, most American cars will depreciate quicker than cars from countries like Germany and Japan. Those cars are deemed more reliable over the long term and that in a nutshell is the number one indicator of depreciation.

Answer 4

Some cars depreciate faster than others. Things that increase the speed of depreciation on a particular car is a high-volume of them in the used car market (rental fleet cars like the Ford Taurus is a good example) a model redesign, aggressive incentives on new cars from the manufacturer (cash-back, 0% financing), poor gas-mileage, poor reliability and impracticality. This being said, many of these factors apply to your car.

First, the Mustang is not a 'rare' car, especially a non-GT version. They are plentiful on the used car market, even late models. Luckily, the 2006 Mustang remains mostly the same today as a new car. However, as part of Ford's "Way Forward" campaign, they are offering even more aggressive incentives on new cars than before. Furthermore, gas prices in the US have remained unusually high, and a Mustang is not a very fuel efficient car. It is also not a very reliable car. This only further hurts its resale value. Finally, since it is technically a sports car, you are now only appealing to a certain buyer. This segments you even more, thus hurting resale values.

Sources like Kelly's Blue Book keep an accurate account of actual sale prices of used cars from places like auctions, wholesale outlets and car dealerships and adjust the values they list accordingly. My advice to would be to lease your next car or find a nice, low mileage used car to purchase.

Answer 5

Personally I think Ford is OK.

Not very many people agree at the moment. The company is having a very hard time doing business.

A number of items equal lower demand for their product and supply and demand determine the price.

Not a ton of people want a used Ford = lower price.

Answer 6

Convertables loose value fast, not just the Mustangs. Since the Mustang is so popular, you are going to pay more. It is called supply and demand.

Answer 7

what share yellow one's do you spot on the line? now not many. merely keep in mind in case you do now not love the motor vehicle, you nevertheless would desire to make month-to-month money and examine out yellow on a daily basis you nevertheless have it. attempt this mindset: in case you may now not get them down on the fee, do now not purchase it for that plenty money. merely shop going back to the salesperson prevalent and make him come off that fee. in case you do now not likely merely like the colour, etc., or regardless of else, you ought to use that as a unfavorable. If this works, you will merely like the colour afterwards and you will see the yellow in a distinctive way. besides, that motor vehicle paint is almost a contest yellow. it is not a ladies yellow, the pastel yellow is the girl yellow. (I additionally consider previous publish approximately including the black stripes). reliable good fortune! pass haggle fee!

Answer 8

because it is a piece of junk. all American made cars are a piece of junk. Why do you think Ford is going out of business as well as GM. They make an inferior product and have no interest in making a good product.

if they were of good quality. they would be in demand and hold their value. look at BMW, Mercedes Benz, even Toyota, Honda.

Answer 9

Hey! News flash!! It`s not just the mustang. But performance cars tend to drop faster than others. Welcome to the real world. I would never buy new, buy I would buy a "new" car that was a year older and save $$$$$$$$$$$

Answer 10

all cars drop in value

Answer 11

Especially the american auto world.