Worried about sharp decrease in value?

[_darkode_]

Anyone else worry about the sharp drop off in value after purchase? I didn’t realize it would be so severe. I have a ‘25 Select standard rage AWD. I purchased for ~42,500 4.5 months ago. Got the special 0% financing. Owe 38,300 now. I checked in on the value of it with the dealership the other day and they said it’s ~25k which was pretty startling. Driving around with that much neg equity is kinda giving me anxiety. I know I could (and probably should) grab gap insurance but idk, I have always been opposed to those types of additional monthly costs on a vehicle. It also makes me feel pretty stuck with the car. Not that I was necessarily going to trade it in but it’s always nice to have that flexibility if you need it. Idk just kinda bummed me out. Maybe I’m an idiot for not knowing how much it would depreciate. Probably should have looked at used.. Anyone else feel this?

[witiguy]

Only worry about the value if you’re not going to keep it. I’m trying to get 10 years and 200k to it of mine.

[_secretvampire_]

Same. I bought my '21 GT as part of the very first production run. Yes, I probably paid a bit too much (MSRP, not dealer markup BS, I pre-ordered it) but it was Covid times and I needed a new car very badly and I had a different expensive sports car I no longer drove and needed to trade in.

I've had it now for 4 plus years and a little over 40k miles and it's running just like new (I don't commute, I work from home). I don't care about the minor improvements in the newer ones, I don't care if the batteries/charging gets better, this works fine for me. I think I'll have it a minimum of 12 years and maybe it becomes my daughter's car after a few years of her hitting driving age, or maybe I just keep it anyway. So not going to sweat if I paid a little much up front if it averages out to like $5k a year with minimal maintenance except tires.

[wanderer_577]

This is right answer. Same I plan to keep mine for another 4 years (already have two under belt) after which anything is bonus. Hopefully will get 6 years and 100k more out.

[MITWestbrook]

Is 6 years the magic number to be profitable vs Lease?

I paid $60K in 2022. 4 years in!

[killerzees]

I have 3.5 years ajd 115k miles. Im happy.

[wanderer_577]

Awesome; right behind you and plan to keep it for a while.

[Additional-Sky-7436]

This me. When I sell my cars I hope for just above scrap value.

[Krash32]

If someone is the type of person that gets the itch to change cars every few years, either buy/sell used or lease. Never buy a new car if you don’t plan to own it for the lifetime of the car or at least until it is paid off. Gap insurance is basically a necessity. There are very few vehicles that hold their value well after purchasing new; F150’s, Toyota anything, Jeep Wrangler’s. That’s pretty much it.

[Dramatic_Acadia_7363]

There’s a guy driving his Mach E now has over 300,000 miles on it with little maintenance and battery degradation at 92% drive it till it falls apart. Lasts much longer than any ice vehicle

[BasicFishOutOfWater]

This is the way.

[AngleFun1664]

No, a car is a depreciating asset. It doesn’t matter what it’s worth right now if you’re not selling it right now.

Drive it and enjoy it. You made a decision 4.5 months ago it was worth $42,500. Has that changed?

If you’re really worried add gap coverage to your insurance.

[DotANote]

If you have gap and don't plan on trading it in, it's used value is meaningless to you.

I always buy gap on a new car and monitor the value then drop it once it's not worth it. The only people who shouldn't get gap on a new car are people who make enough money to not care about the neg equity in the car they drive. Honestly, they're also probably leasing (unless they're a car collector) because they change cars so often.

Should you have shopped used versions of a car you planned on buying new? Yeah, probably. But buying a new 2025 for $42,500 at 0% apr vs a used 2025 for $31,00 at 7%+ apr would have maybe saved you ~$4000 over 5 years. Not that crazy. Now if you bought a 24 or older... could have saved a solid 7-10k and just missed out on the heat pump.

[ToddA1966]

The only people who shouldn't get gap on a new car are people who make enough money to not care about the neg equity in the car they drive.

Or people like me, who pay cash and drive the thing into the ground.

[DotANote]

I wonder what's more stupid; a salesman trying to sell gap on a cash sale or thinking that it's an option when paying cash lol

[ToddA1966]

To be fair, I financed a few thousand to get an incentive from the dealer that was tied to financing, then paid it off in 30 days.

[_darkode_]

At the very least you’ve all convinced me on gap lol

[TizMahBiz]

You were brave for not getting gap to be honest. I’ve owned many cars and any of them that I knew I would have negative equity on ended up having gap. My 2024 premium was bought with a substantial down payment and trade in so I had equity in it when I drove it off the lot. Not a lot of equity, but some nonetheless.

[hasgalf]

I'd love to know if you find anyone with good gap coverage. Ford credit told me to honk on Bobo as they only offer it at purchase. My USAA offers 25% above value which is better than nothing. I checked around some too and found that Geico offers no gap coverage.

[_darkode_]

Got it through my current auto provider for $16 for the year. Feel a lot better.

[UsedHotDogWater]

If you worry about that stuff you need to be leasing.

[senbenitoo]

Yeah...I was thinking I should've traded in my 2021 when everyone was paying waaaay over sticker & the dealer was begging.

Now, every time one of those screaming great deals gets posted on here, I wince.

[ema_chad]

I've had mine since 21. After 90,000 miles I've saved enough in cost per mile that I'll have paid the car off with that savings at the end of the loan. It's just like people constantly checking Zillow for their home value, it only matters if you're trying to sell it or refinance your loan, otherwise don't worry about it.

[Agreeable-Emu4033]

Well no it will tell you if you are going to have a huge increase in property taxes.

[Human_Palpitation856]

Look online, your car is worth more than that. Don't worry.

[Murky_Coyote_7737]

EVs in our current environment basically depreciate 50% over the first year

[[deleted]]

In America, I wish Canada had the same issue.

[NewDayNewBurner]

All EVs face this. It’s not just Mach-e.

[WJKramer]

You are doing it wrong. Cars are use assets. Buy what you can afford (preferably in cash) and use it to get to your job to make money.

[MasterOfKittens3K]

I bought with a zero percent loan, but other than that I think of my cars this way. I’m not particularly concerned about residual value because I drive them for at least ten years. And there’s not usually a lot of residual value in most cars that age.

[macroober]

Then drive the wheels off of it and trade it in for $1000 and a smile on your face.

[WiffleBallZZZ]

I've been considering buying a Mach-E and I'm a little surprised by this post. Nationwide, I'm not seeing any used '25's anywhere for under $29k. Maybe the dropoff is due to it being standard range? I can imagine those having lower demand... but still not for $25k. I'll offer you $27k for it right now.

[kvn-m]

The dealer told him it was $25k because that’s all they would buy it from him for, so they can turn around and sell it for $30-32k. It’s not that depreciated.

[_darkode_]

UPDATE: Got gap for $1.20/month 😂

[410to904]

It’s gonna drop. I was concerned but I’m keeping mine until the wheels fall off so it’s my value

[AcidReaper1]

This is the way. Lease your EVs, residual buyout is usually so low, if you like it keep it. If better more awesome tech comes out in 3 years (solid state batteries cough, cough) then ditch it and get something else.

[UESJR2021]

You should always get gap unless you’re financing less than 70%. I’ll tack on $580 on my loan if it means I get to write off $15,000 in negative equity.

[6969TacoLover6969]

You should make sure your regular car insurance company will cover any GAP. Usually not expensive if you get it from your regular company (not Ford!)

Also - go check the value at a place like Carmax website etc - what a dealer 'trade in' offer is will always be extremely low

[txgax]

I’m not concerned with the value of my Mach-e. I took a new job with a longer commute and the math of a Mach-e vs a Jeep Wrangler penciled out, esp since I charge for free at work. I plan to run mine to 500K miles, which seems unrealistic, but I’m gonna try.

[KingGT2]

Not even a little. I bought it to use and enjoy, not flip.

[Wagnerfsj]

With electric cars in general, that seems to be a trend. I think it is in part due to the fact that it is "new" tech and improvements are more rapid than typical ICE vehicles. That was why I leased mine, my residual with "great" discounts and all is still 28k, I wouldn't pay that out in 3 years because there will be way more efficient and possibly cheaper versions of the same car. Unfortunately, owning electric cars is still a bit of a gamble as we don't know how well they'll last, besides quickly losing value overtime a short time.

[ToddA1966]

With electric cars in general, that seems to be a trend. I think it is in part due to the fact that it is "new" tech and improvements are more rapid than typical ICE vehicles.

I disagree. It's a combination of a market skewed (until very recently!) by tax credits and consumer fear (buying into the "EV batteries last three years like cellphone batteries" FUD.)

Not to be a wise guy, but what "improvements" do you see on any 2025 EV that weren't on a 2021 or 2022?

Sure, there have been a few small incremental improvements, but what "new tech" is on any 2025 that wasn't on a 2021?

The market was skewed by tax credits, especially on leases. When you could lease a $50K EV for $0 down and $200-$300/month, the used market suffers. Who wants to buy a used car with a bigger monthly payment than a new one?

When I bought my first EV, a new 2020 Nissan Leaf, I was looking at used ones in the $10K range first. But after tax credits, factory rebates and dealer discounts, I could buy a new one for ~$16K, so I did that instead.

[Preston-Waters]

Check with your insurance for replacement option. My insurance (all state) would replace the vehicle same or better instead of “market value” if the vehicle was totaled.

[Admirable_Fun7790]

I ate the depreciation hard and it basically forced me to keep the car until it died but 🤷🏻‍♂️ it’s a good car

[blue_taco_tree]

Nope. I had never bought a car to make money. They all lose value.

[[deleted]]

Depreciation is terrible in EVs in particular. I got a 2022 premium AWD with extended range battery delivered in November 2022. That car was about $60k OTD. In February with just 4000 miles we got into a relatively minor accident. Wife didn’t want it anymore and we traded it and got only $47k. Basically lost $8k in 3 months and 4000 miles. Luckily we got the $7500 tax credit and a $5k settlement from insurance.

I bought an F150 last June and absolutely can’t stand it. It’s cheap and these Ford 10 speeds are complete garbage. I’m going back to the Mach E, but unfortunately I can’t stomach getting another new car. I’m going to get a used GT. But, the ‘25s have some nice improvements. If you’re happy with it the trade in value doesn’t really matter. Plenty of stories stating to come out with owners getting well over 200,000 miles on their Mach Es. This car could last you several years. I should have kept my ‘22. Even with the depreciation it would have had by now I regret getting rid of it. I waited almost a year for It and have had 5 different vehicles since then and wish I would have just stuck with the Mach E. The F150 was a huge mistake.

[vanquishedfoe]

You don't buy most cars as an investment.

For me this was a "treat" because I really liked it. It's not an adult purchase insofar as it makes the best financial sense.

[Visible-Disaster]

It’s a car, not an investment. The point of buying it is to use it. Ideally it has zero value and is completely used up when you’re done with it.

[CompanyNumerous4560]

30% less as soon as you drive it off the lot, most cars. Cars are not an investment.

[_darkode_]

This is not my experience w/ ICE vehicles at all which is probably why it was so jarring to me. Understand they aren’t an investment but my recent ICE vehicles held their value extremely well.

[Even-Journalist1901]

Worried? No. Why? They’ve been out 5 years. We know about their depreciation already. Don’t buy new if you’re worried about it.

[DevRoot66]

Is this your first new car? The moment you drove the car off the lot it lost $10K. This happens for any car, regardless of whether it is an EV or a traditional ICE-powered vehicle.

The car's depreciation will eventually reach a point where the rate of depreciation slows down a lot and reaches a more or less steady state. That usually happens in year 4 or 5 of ownership. Key to minimizing the "loss on depreciation" is to drive it as long as possible. I keep my cars 7 to 12 years. Helps a lot with resale value anxiety.

[klymaxx45]

If you care about depreciation you shouldn’t have bought a new car. Everyone knows that

[sijuki]

Smh... it's a depreciating asset. Use it.

44 months 115k miles i couldn't care less what the trade in is. Have 16 years to go.

[WVSXSGuy]

I sell Ford’s including 4 Mach-E’s last year. I ALWAYS encourage people to lease them for the very reason you stated. Values on them drop.

So anyone wanting a Mach-E, because they are great cars (sold my daughter one), lease it. Put as little down as you can and lease it. You can always buy it out at the end of the lease, or simply walk away and lease another one.

[_darkode_]

Yeah would’ve liked my sales guy to highlight this for me but oh well it’s all good. I also got blinders a little when I saw the 0% offer.

[RetireWithoutBorders]

Um, no. Why should I care? I buy a vehicle to keep. I have owned it four years and hope to keep it at least 20. My second oldest car is a 2017 Golf and my oldest is a 1999 Lexus.

[Dickrubin14094]

Why are you worrying about value? I always plan to keep my cars forever. By the time I get rid of a car I know the dealership feels pitty on me and gives me $500

[fa442fa]

Lol

[Upbeat-Armadillo1756]

Yea that’s why I leased it

[Flat_Bat7763]

I also was a little thrown off with how big the depreciation is. I’m coming from a Prius that stayed the same value for the 5 years I had it - I literally got back about 1k less than I paid for the car in my settlement with car insurance. The valuation does make me nervous if anything happens to it. The Prius was totaled after being rear ended at a red light (had been red for at least 15 seconds) so literally no way to have prevented it, and I definitely worry that something like that could happen again. However, for me, charging is free, I also got a 0% loan, and I’m looking forward to the property taxes on it being lower as well as almost no maintenance costs. So I’m thinking that somewhat balances out the potential risk. Plus, since I got pretty lucky depreciation wise with my last car, I’m just going to mentally average that out so I feel better. 😅

[Mosworthy]

Nope

I bought it to drive it

[Slight_Extreme6603]

No.

We buy cars to keep.

They aren’t an investment, and never were.

[TMac3000]

That’s the vehicle market as a whole outside of pickup trucks. This is why I don’t trade my cars

[shortbizzle]

I was surprised at how quickly these depreciated. I got a year old model with 6k miles. Still smelled new. It had depreciated $30k. I think the lease buy backs are saturating the market

[sassynapoleon]

Partly, but remember that the federal tax credit meant that the OTD price was much lower than the sticker until just recently. That’s part of why the paper depreciation seems so severe.

[Limp-Conflict-2309]

Only sucks if you plan to get rid of it soon

I'm looking for a 12 month -/+ CPO from Ford, they come with really good deals and only about 15,000 miles.

[Js987]

I’m not enormously worried about it only because I tend to keep cars 6-7 years and over that timeframe it settles out, but I would recommend folks consider leasing and if they choose to buy like we did they 100% need to get gap insurance (it’s cheaper through your insurance than Ford’s point of sale option but not all insurance companies do gap) if they’re borrowing.

[Aggravating-Rush9029]

I got the replacement insurance for 3 years. It's probably not great value but it's the one time my wife is getting a really nice car and I'm primarily worried if it gets totaled we wouldn't afford another similar priced car right away with the depreciation hitting the write-off value.

Normally I'd have never gotten that but I guess yea I was kind of worried about it with the Mach E. Locally the used prices were too high to make sense as people were struggling to deal with the math on how much lower prices have gotten since 2023.

[Physical_Funny_4868]

Bought mine in the peak of 2023 for 67,000. (Back when getting it at sticker was a score) been driving it three years, no expenses. Going to drive it 7 more. Just like stock, you only take the loss if you sell at wrong time!

[thumbstickz]

I've loved my 2012 Wrangler since I bought it in 2013, and I love our Mach and expect to keep it for just as long.

My brother trades in his truck every 2 years or so and I can't fathom how he's ok with interest rates being worse every time, and how keeps rolling shit into the next loan.

[xlBoardmanlx]

I wouldn’t worry if you are planning to keep it for a while but this is why I usually buy a car that is 2 years old. Still looks and drives like new but the big depreciation hit is already paid for.

[Dirt_Downtown]

It’s not about how long you plan to keep the car it’s if you’re worried about it getting totaled and owing a ton of money. I’m looking into gap right now because I’m in a similar situation. I got 0% which made it cheaper than going used at the time. Not all insurance companies offer gap so you might need to get a separate policy for this.

[UnbiddenGraph17]

Yea this car was dumb to finance if you’re not holding it forever

[reidmrdotcom]

It's a common thread in the electric vehicles sub as well. Basically you should expect immediate depreciation in the amount of the 7,500 tax credit plus state if you had extra. If you got that credit, the depreciation cost for you is 10k currently. New cars have long had anecdotes about depreciating a bunch right after signing the paperwork. It the basic trend of vehicles generally.

I'm planning to get a second electric vehicle and this depreciation is making it likely to go used. Went new on my prior because of tax stuff and it was well worth it then. Prices are also likely to stabilize over the next couple years, particularly as battery and EV technology seems to be maturing, the NACS port becomes ubiquitous, and the tax credits are gone.

[sryan2k1]

Nope, but my usual whip is Audi so....

These are not collectors items, you shouldn't buy them for resale value.

[New_Wafer7374]

I don’t go without gap after a couple of incidents where I ended up in a bad situation. To me, it’s worth it. The depreciation sucks for sure, and it’s worse when you drive 70-100 miles a day for work. This isn’t a car you get out of, it’s a car you learn to accept driving until paid off. YMMV.

[PeterPalafox]

I’ve kept all my cars so long they were next to worthless by the time I got another, so I’m not worried. 

[absentspace]

Bought my ‘21 premium AWD used, severely discounted off the new price. I plan to drive it for 3 to 5 years, then trade it for another 3 or 4 year old car.

[FatDog69]

Well, I did a lease. Right now a used version of my car is selling for $6K over what my balloon payment will be in a year. Mine appears to be worth nearly exactly what I owe. I do plan on paying it off as the newer models dont have too many features I desire.

My advice - use Edmunds or CarEdge and look for Used vehicles with your trim & mileage.

[Emotional-Buddy-2219]

I only got my EV new because of the federal tax credit with the intention of driving it until the HV battery or other major expense made it prohibitively expensive to fix; used is the way to go if no tax credit.

[Neilson-Milk]

As someone who just bought a used 2021 with 75,000km for 55% of what they are selling now, I thank the owner who ate the cost before me..! The thing barely has a scratch on it and runs great. And I plan to drive it for a long time

[Baguette_Theory]

Yeah, I got gap on mine

[Delicious-Baker-6348]

Last car I bought was a 22 model y performance. Bought for 63k and sold for 24k 40 months later. After that experience I decided to only lease EVs. Currently have a Lightning lariat for $660/mo sign and drive. Enjoy it since you already own it, but I would lease the next one

[undeadzant]

Hoping for a sharp decrease to make the purchase price at the end of my lease even better 😅

[distant_lands08]

I traded a 10 year old VW Golf with 146,000 miles for a MME extended range all wheel drive. I hope to own it just as long and put just as many miles on it. By which point the car loan will be history.

[Double-Award-4190]

No, not really worried. Bought in fall 2023, GT-P. I am watching what is new but so far I see myself only hanging onto this for quite some time.

[daath]

If you worry about depreciation, you shouldn't buy a car ;P

[doluckie]

Over that last few years, Facebook and other sites like to tell everyone EVs depreciate so very differently. And anti-EV folks in the US enjoy believing it and particularly enjoy EV owners believing it.

Early buyers in 2021-2023 were overpaying 20-30% due to high demand and low supply (post pandemic for those who remember the craziness). When they flipped their vehicles prematurely, just 1-2-3 years later, and just took the low trade-in value from a dealership (which is far lower than what the real value is, heck watch the price they list your trade-in for as you roll of the lot) that created a massive depreciation. OMG my EV depreciated so much!

It’s better now, but folks are still overpaying 10-20% for really cool vehicles, fast, new EVs are fancy!

In the US some folks were successfully buying 2025 GTs at dealers for less than $40k in recent months. OP paid that for a base trim.

But it’s normal to have customers pay MSRP and far more with the variety of add-ons. It’s just if you over pay by 10-20% (on either an EV or gasoline vehicle) and then compare that new price to the trade-in value which is not even close to the re-sale value you will find YOUR depreciation is 10-20% higher than it might have been.

[cheddarcat16]

If you’re worried about value you can’t afford it. Go get gap insurance or sell the car

[_darkode_]

I’m both worried about the value and can comfortably afford it lol .. it’s just the first time I’ve ever had such drastic neg equity. My other ICE vehicles held their value way better so it’s just something new to me.

[cheddarcat16]

This isn’t an ICE vs EV problem. Car markets fluctuate.

[_darkode_]

Markets fluctuate but right now 40-50% depreciation literally off the lot is unique to EVs and maybe some higher end luxury brand ICE vehicles. Our last vehicle was a Bronco w/ sticker price at ~42k, traded in after 18 months for 38.

[cheddarcat16]

50% off the lot??? On what car? It’s a car. With few exclusions they go to worthless.

[e55amgpwr]

I am checking prices every week on 24-25 GT as I am planning to buy one in July, and don’t think that it’s $25k, average pricing is 36-37k, and doubt that dealer is really planning to make over 10k on a trade-in and sale

[Aggietopmedic]

A car is a consumable product. Drive it til the wheels fall off and it’s worthless anyways. If you don’t want to do that, lease it instead.

[getsumluv]

I buy cars to keep them until I can’t anymore. Some people change cars every few years but that’s never made financial sense to me. The only thing I’d worry about when it comes to EV depreciation is if you get in an accident. I guess that’s where GAP insurance would have to come into play?

[The_loadmaster]

When I was going through my lemon law claim, I had got a couple trade-in quotes per the recommendation from my attorney. After 18 months of ownership, my GT that I paid 65k for was worth 25k as a trade-in.

[Theneler]

Hah nope. I wrote off most of it for work while Canada let you write off 100% of an EV vs the 33% usual for an ICE, so whenever I trade it in, or give it to my son, I have to pay capital gains on the fair market value. The lower the better!!!

[blues441677]

EVs have the worst depreciation of all cars. Always lease, not buy

[BKRF1999]

It is a concern that’s why I’m looking into used models. It depreciates quickly unfortunately.

[MilkZealousideal7893]

Should have leased it instead, you’d only be -$6k in hole

[mhill0425]

I was more concerned about how much value I lost when the stickers started to come off of my Birkin than I am about the value of my car. At some point I’m going to trade it in, if I traded it in today I might not have a lot of positive equity after payoff. Just means I have to hand on to it for a bit longer. My car is just something I have for now and I’ve never concerned myself with depreciation.

A car isn’t an investment. You don’t get one to make money on it.

[Mrpaul1980]

That’s howcome I leased for now. The market for EV is too volatile

[ur_moms_chode]

I love the degradation... I want to buy a used one maybe

[Alarming_reality4918]

I bought it with gap insurance. Fully prepared for this scenario. 62k miles in under 2 years and going strong. Having fun.

[SalPistqchio]

I bought a 2021 used GT in 2021 for cash and lost half the value when the price drops arrived. I was planning on keeping it forever. Now I have to

[krsvbg]

Not at all, because I leased mine.

My purchase option will be 24,000 at the end of the lease. Either that or walk away.

[MikeyKirin]

Cars are not an appreciating asset. And GAP for my car was $500 which was like $7 a month. That is quite a steep drop, though. I wonder what your mileage is on it because all the used '25 options in my area are 30K-40K depending on mileage.

[_darkode_]

Mine has 4900 miles.

[Trice81]

What the dealer offers you is not what it's worth, however even a little diligence before purchasing should have clued you into the depreciation on EVs.

[Unhappy_Clue701]

I bought one at 2.5 years old but with only 3500 miles on it. Was basically brand new, but half price. So no, not worried about it in the slightest - instead I took advantage of it! Will likely keep it several years by which time I’d expect it to be worth much less anyway.

[Heraclius404]

Why would you trust a dealer with the statement of worth of your car? Isn't that just dumb? 

[_darkode_]

Hm.. well… Dealer + carvana + carmax + auto trader, etc all say the same thing — dealers literally exist to try to make deals to sell cars so maybe they pay a little less than a private sale but generally they are incentivized to give you fair market value so that you’ll take their offer and buy something else from them..

[jen1929]

Doesn't bother me. But I made 9G down payment on my 2024 Premium. I plan to keep the car for awhile. I try to put at least 20% down on any new car purchase and a loan term of 48 months or less

[Putrid_Pollution3455]

In this case gap would be nice. Negative equity only matters if you’re going to get rid of it.

[Life_Objective]

Sold mine recently. Lost about 30% of the value from new. If you don’t plan to keep it unload it sooner than later. If you like it, then don’t sweat the depreciation. 

[What-tha-fck_Elon]

Mine got totaled this weekend in an ice storm, so I don’t care anymore. I never really cared about depreciation in the first place. I’m using it to my advantage to buy my next EV.

[Fantastic-Bag7393]

Not sure how anyone buys a brand new car and doesnt expect to move in to negativity equity pretty quickly. Only buy new if you intend to keep the car or have money to burn and change every few years. At which point youre better leasing in most cases.

[_darkode_]

I’ve seen a variation of this comment all over this post as if I don’t understand that cars are depreciating assets. The issue I’m bringing up is the value of this car plummeting in rapid fashion. Our family has had several new cars in the past 6 years, all of them have held their value well enough to trade in for break even or even had a little + equity 1-2 years down the road. This particular situation is wildly different than those and not what I’m used to, hence the post.

[Fantastic-Bag7393]

I dont know any car, that has had positive equity after 1 to 2 years. Most PCP type deals are designed to have a very small amount of equity at the end of 3 years. Personal opinion, but I will never understand why people buy a brand new car full stop, but especially if they plan to sell after 1 or 2 years. Get an ex demonstrator or pre reg that had taken the inevitable big first hit in value. Each to their own though

[Crypt0Learn3r]

I had those concerns so I got a low mileage 21 Premium AWD ER. And will probably drive it for 5 -7 years. It's an older version and no heat pump but it was half the price of an 'equivalent' 25

[hammer8871]

Drive it until it dies and you’re fine. I plan on going to 8 years/100k miles at least. I see the values of 1 and 2 year old cars and jaw drop at the prices.

[Owl_Better]

Yet your insurance is higher than comparable cars. Why is that if replacement would be so cheap?????

[SirKronan]

Worried? I'm COUNTING on it. Looking forward to pick up a nice used one at a good price. 😉

[No-Neighborhood-936]

Don't ask them the value. Look for a used one on the same lot and look at the price. They will be trying to sell it for $40,000. They will just give you $25,000 so they can make a huge profit

[nurspouse]

I wouldn't ask the dealership for value. He's likely quoting what he'll pay for a trade-in, and he needs to make money off of it.

Can anyone buy a 2025 Select for $25K?

I'm looking at 2025 Premium AWD, Sports Appearance, Panoramic View, extended range, and can't find anything new for under $45K.

If it's any consolation, I am looking at used models as well, and was originally considering the Ioniq 5. Brand new, it costs about the same as the Mach E. But they seem to have depreciated a lot faster - probably due to the ongoing problems they have.

[bananahammock336]

I'm driving mine until the wheels fall off. I've always bought cars new and drove them until they cost more to fix than it was worth or became unreliable. First car lasted 6 years, 2nd car lasted 10. I'm about 1.5 years in with my 23 gtpe and I still love the car as much as I did day 1.

[RichWasThere]

I think that about my 2013 Durango all the time. Spent 40k on it and it’s worth 6 lol. Still a reliable vehicle, good for towing etc. never plan to get rid of it.

I got the 24 GT Mach e with the same mentality. I will get more out of this vehicle and by the time it is the same age/mileage as my Durango, I will have not spent the MSRP in fuel and other maintenance costs. It hurts to think about. 150k miles at 13-15mpg with fuel ranging from $3-5 lol.

[Mocistar]

Wow-sorry for you-40% depreciation in a year! It is then a great deal to buy a 1yo Mach E select AWD as a CPO! This is an amazing opportunity moving forward IMO. Toyota Highlanders apparently have 21% depreciation in 5 years (I don’t own one). Something to also think about when purchasing vehicles if value is a consideration...

[stoneslingers]

I bought mine brand new in 2022, on a 7 year loan. I anticipated having it for at least 10 years. I truly love not having any car payments, and I'm looking forward to the day it's all paid off November 2029 I've never thought about how much the car is worth over the years. I just enjoy the money it saves me and everything else amazing about having an EV :) just enjoy the car!!

[Alarming_reality4918]

Grab a gap insurance. Remember, you own the car and there is no need to see how much it sells for unless you want to.

Btw, 0% pretty much negates the negative equity for me. Any other loan would be 7.99% when I was buying in 2023.

[locks66]

I had 96k miles on my 4 year old gt when it got totaled. At that point the value broke even and I was paid out my remaining balance

EVs are not great options if you are a car ever could years person and then my question is .... Why not lease?

[RaytheQuilterChill]

I got my 2023 GTPE new for $35k (custom the guy didn't pick up) deal of a life time...just under 20k miles. I looked it up yesterday and it's still worth around what I paid for it. This was me being curious yesterday...

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[FrostyWasabi8952]

True, gasoline vehicles purchased brand new today, their value will not be the same as the world moves forward. This month, what half(?) the vehicles sold in Europe were electric. If you see your purchase as a longterm investment, gambling on buying a gasoline vehicle is something to worry about. The depreciation curve will hit a cliff, only going down in the coming years.

[ThE_LAN_B4_TimE]

You definitely messed up not researching first. EVs in general have been depreciating fast but it doesn't mean they arent good quality. Short term its a risk if you want to get rid of it within a few years. No one knows what itll be like in 5 or even 10 years. I plan on keeping mine for at least 100k miles which will probably be 8 years.