OK, here is a question for the people who work with Ford.
You go and buy a 50,000 dollar truck and drive it for 2
to 3 years. A new model comes out and you want to trade
up. Problem is your 50,000 dollar truck is worth as much as
a truck your friend paid 35,000 dollars for new. Granted in the first
2 years you will be hit hard with depreciation, but this is just
stupid ! Ford does not want your trade in, they want everyone
to buy a new truck from them.
People who have thier product are now faced with a few decisions:
Do I buy yet another Ford product only to get the bad news
2 to 3 years down the road that Ford thinks it is basically worthless?
Do I try to sell my truck to a market that knows they will be paying
thousands of dollars over what a dealer pays and they will be stuck
with it because they will NEVER get a fair trade in ? Granted this is
always the case when you trade in. However, Ford seems to think
that a 3 three year old super cab basic pakage model is worth the
same as a 3 year old Crew Cab Lariat package model for a trade in.
I hear this from countless people. So why buy from Ford ? You know
you are going to HAVE to sell your truck on an open market with
thousands of others that are in the same boat as you. We the
consumers of Ford porducts have to take this problem upon
themselves to stay in the game. It is no wonder Ford is in such
a pickle. I would go buy a new 2007 in a heart beat, but Ford tells
me my truck is WORTHLESS to them in a trade in. You literally lose
half the value of your truck, if you buy an expensive package, within
one and a half years. This is why eveyone drives thier Ford for as
many years as they do. When they sell they wait a good long time
for a buyer. Hell, you do not want to give your truck away, but to
be truthful with you, I would not buy a used Ford truck knowing I
will have to sell it out right to get my money out of it. When Ford
had thier "you pay what the emplyees pay" in the summer of 2005,
the pricing structure for used trucks went to the dogs. Ford knows
this and you will notice they have not repeated this for 2006.
No one bought new, becuase they could not sell thier old iron.
They lost thier butts. However, in my eyes they reap what they sow.

 

All the manufacturers play this game, not just Ford. However, I believe dealers are more willing to deal when you are buying another Ford product. Just go see what GM or dodge will offer you for trade.

Write this down, "Can I expect my new 07 to lose 40% of its value in the first 2 years like my 05 did?"

Then pause and tell them it has this ____ package and to recheck the blue book.

I've also found buying on A or X plan will lessen the depreciation impact on your wallet, since the purchase price is lower than MSRP. Example: I bought an 04 HD F-250 in late 04 for 37,500 (sticker 50,500). I drove the &^$% out of it for a year and traded it in on an 06 for 36,500. Shop around for trade in values if you can. Look at the total package. Which dealer offers highest trade, greatest rebates and lowest purchase price? Even then the dealer is still making a killing and you just lost more money.

Bottom line, every time you buy a vehicle (musclecars excluded) you lose money. Vehicles are depreciations not investments and the more you can push off the capital purchase the better for your finances.

 

Customz offers excellent advice here. You'll also find regional differences in what your trade-in is worth, and they can be significant differences that can make it worth the drive! Also, our member Polarbear offers a deal that is similar to an X-plan price for FTE members, so if you're shopping, you should be talking to him for an honest dealer's view. Don't forget, though I know he doesn't advertise this, he often can do courtesy delivery for folks too far away to trek up to Portland, OR (for a small fee).

I don't find Ford any different than the other majors as far as trade-ins are concerned, it's rare to never that you can't do better selling it yourself...

Good luck...

 

Here is my experience:

I have bought about 8 trucks in the last 10 years. I have been able to buy the truck at or just barely above invoice, drive it for 12-24 months and 40-80K miles then trade it in and get about what the loan balance is on my truck with no money out of pocket except for add-ons at the dealer. I will always have a truck payment but i will always have a new truck.

Although we are driving $50K trucks, most of us are not paying near that. My $50K truck that I paid $41K for in Sept '04 now has a trade in value of around $30K with a loan balance of $25K. I might actually get some equity out of it when I trade it in on my '08 that I ordered a couple of weeks ago.

I guess it is all relative. Good luck.

 

I would expect comments from you guys to be good ones. After all, anyone who will write a check (be it all at once or monthly) for a vehicle that costs over 40,000 has to have some savvy. You are right. I bought my two King Ranch trucks at about 40,000 in the summer of 2005. However, I will have to wait to see if any dealer will be willing to let go of thier stock via giving me a decent trade or selling thier invetory without a huge profit. Ford makes a good deal of money off thier trucks, everyone knows this. You can always order a truck, but dealers do not want your trade and they will tell you this up front when you order. What has always been interesting is that they think your trade in is simply worthless, yet when they do sell your trade on thier lot all the sudden they are really proud of it. I had one used car dealer actually tell me that they have to sell them for that kinda money so the guys selling thier trucks outright will get a good deal. My point was that it is better if you buy a basic diesel crew cab with cloth interior and little to no frills. I did this with my 2003 dually. Bought it for less than 32,000 and traded it for 27,000 two years latter. But what fun is this ?
I have to buy a truck for my wife just as much as I have to buy one for myself. Granted, I really do not care what the inside looks like, but the wife sure as hell does. I can trick out the truck and take it all off when I go to trade in. (I always buy aftermarket that will bolt on and off without a trace).
You cant go and buy the King Ranch seats, change the dash and put in that 6 CD changer and climate control too easy and you certainly can not take it out when you trade. Just try to put in a power sliding back window and then try to take that puppy out! Try getting a spray in bed liner to match the color of the truck. I am sure you get my point here.
I learned some time ago that if you put on aftermarket stuff that will not come off before trade you lose that money. It is like putting a swimming pool in your back yard. You lose that money when you sell. BUT, Ford should stand up to thier goodies, not leave you holding your privates when you trade. I think that is bull****
OK, OK I will stop venting.

 

I have found that Carmax & Autonation seems to provide a better alternative to trade-in's. The last two autos/trucks I sold was through them. They were high end types, Lariat F150, and as they were in great shape w/ reasonable miles I felt I made a good deal, even vs. trying to sell myself.

They move these around the country, unlike a dealership does on its' used stuff. Just another option to consider. They will even give you a free write up offer good for 3 days and 300 miles.

 

I think you can add leather seats on a XLT if you order it. The king ranches and harley davidson packages are very pricey and will depreciate fast. I usually try to buy
1-3 year old trucks and let someone else take the depreciation hit. Town taxes are
lower on a used truck to, and if you have to pay a sales tax same thing, we dnt have on in NH..

 

Your best options are:

1)Buy a 3-5 year old truck that has been maintained.

2) IF you do buy new plan on keeping it for 15+ years

I have a $3000/year rule. I will not ever buy a vehicle that costs me more than $3000 a year for the life of that vehicle. Usually I get less than $2000/year. What that means is that if I buy a $30000.00 vehicle I better have it for at LEAST 10 years. BTW a $500 dollar truck will usually do what a $50k one will. Vehicles are tools, nothing more.

 

It is very good that you do not have taxes on used vehicles. This is mostly never seen in any other state as far as I know. This SHOULD be the way it is. After all one pays out 7 percent on a new vehicle, the state gets paid out and you go on. Then the next guy comes along and buys your truck and pays taxes on it again. i have always thought this to be taxation without representation.
As far as the depreciation hit. If one sells outright to someone like yourself, you get quite a bit more than if you trade in. However, the banks tend to want to screw you on the interest rate for a used vehicle. Why?, because the price of the vehicle is lower, the average time period you own it is much lower and they need the interest rate to make money on the loan. To a bank the loan on a new vehicle is a better choice. You end up paying close to what you would had you taken the zero percent, the incentives OR the rebates on a new vehicle. However, this practice is becoming a nightmare for everyone involved. You buy a truck for 50 k and in 6 months and 6,000 miles later it is worth 55 percent of the new value in a trade. Why?, because the dealer knows you must have paid next to nothing new. If you did not, then you are at an even greater disadvantage. This whole business is backfiring on the auto industry and virtually every manufacturer is feeling the squeeze.
Ford, Chrysler and GMC started this mess and we are paying for it.
Why buy a used truck for 70 - 75 percent of the price of a new one, pay 8 to 12 percent on the loan? Go to the dealer (without a trade) and pay 80 to 85 percent of the sticker, get a zero percent loan for 60 to 72 months and reap even more incentives at the end of the year pricing. Thing is you are STUCK with the vehicle until you find a sucker to buy it from you at a decent price.
The dealer will give you NOTHING for your trade and you end up going upside down for the financing. Do this 2 times and you are ready to go to the bank manager with the keys. This is a trend that started with the emplyee discounting and it has reeked havoc ever since. Buy used, get screwed with the percentage rates and then try to turn you vehicle in on a trade. You may just as well drive it into a pond and take the insurance money. Sell a vehicle with two owners and you are a lucky gent to get a decent price. I understand that Ford Credit is reposessing as many vehicles as it finances.

 

i bought my 2004 f250 used in november of 1995 for $32k (which was slightly below bluebook when i looked) and the in july 2006, i traded it in on a new 2006 f250 which i bought for $33k! and of course i got hit with my trade in, but the interest made up for it and i only ended up paying $20 more a month for the new 2006 than my used 2004.

and go figure, the price they were asking for my old truck, $31,500.

but due to my job loss right after i bought my truck, i am stuck between a rock and a hard place, owe more than its worth! oh well, at least i get to enjoy driving it.

 

It's the law of supply and demand, nothing more. Lots of used trucks on the market when new trucks are being sold at big discounts, sometimes with 0% interest and new vehicle warranty. Makes the almost new, used trucks worth a lot less. Personnally, I bought my last one loaded with everything and drove it for 7 years. I plan on keeping this one untill I no longer need a truck!. I'm having a new Curtis plow put on next Thursday. This will be my only truck for a few years, then it will be my work/plow truck. I will buy a new fun truck at that point.

 

there is no such thing as equity in a depreciating asset.

 

In Michigan We Have No Choice But To Pay Tax On A Used Vehicle,which S**ks!!

 

Well I bought my 2004 XLT CC 4x4 with 17k on the ticker the end of 04 for 32, now it has 39k on it and ford said they would give me 22k for it and the truck is flawless. I agree with old boy, they don't give crap on a trade in. Now people talk of "payments", well if that is all you care about then yeah, I'm sure they will work with you. I pay cash for my trucks and taking a 10k hit for under 2 years and 21k miles is just crazy, Bet that truck would be on the lot for 27k the next day. That is fine, I will run this truck until it is a collector and will buy from dodge next. At least they offer a desent warranty. Not a ford basher, I have a 03 cobra that I love and is amazing but the more I look at these trucks, ford just doesn't cut it. I know chevy cost a little more and dodge is lesser quality, but if ford is such high quality, why are they offering me less on my truck than a dodge with the same features. Who knows?

 

Can't disagree with you for not wanting to take a hit on your Ford, but think about what you're doing before you head over to Dodge!!!! Been there...done that....