wildcat Posted January 26, 2007 Report Share Posted January 26, 2007 Just curious what your thoughts are on the seldom discussed reality of depreciation. Assuming I buy a GT500, pay the average $15K-$20K over to be the first guy on the block to have it, drive it regularly, keep it near mint, then try to sell it in 3 years after it's got 20,000 miles on it. What will it bring me? I'd guess maybe in the $25K-$30K range, considering the usual depreciation (even on nice, high line cars ... admit it or not!) ... That would be about half of what I paid for the car if it turns out that way! OUCH! So what's everyone's take on it? And let's avoid the politically correct answer of "It doesn't matter, if you have the money to pay the ADM and want it, then do it and enjoy it. Don't worry about the value." (Because realistically the value of this car in a few years DOES matter to ALL of us!!) Do you guys think value will be based on retail ($43K), or do you think there's any prayer of any of us getting some of the ADM recouped? Link to comment Share on other sites More sharing options...
wildosvt Posted January 26, 2007 Report Share Posted January 26, 2007 04 Cobras are going for anywhere from 23-30K (depending vert or coupe miles etc.). Its the 07MY. I don't know much about the ADM beings I did'nt pay one. Link to comment Share on other sites More sharing options...
wildcat Posted January 26, 2007 Author Report Share Posted January 26, 2007 I don't know much about the ADM beings I did'nt pay one. Yeah, but your in the lucky 2% of MSRP buyers. I'm talking about everyone else who is paying (on average) $15K over (I know some are as low as $5K and some are as much as $30K, but a safe average is $15K) Link to comment Share on other sites More sharing options...
KCMO-GT500 Posted January 26, 2007 Report Share Posted January 26, 2007 I'm guessing that even the original shelbys in the 60s and 70s had pretty good depreciation after only 3 years. If you want an investment, think 40 years or so, or hit the mutual funds. As an aside, my 17 year old asked me question about how to do some investing (he's got a good job with best buy, and they offer a matched 401K). Found out that $50 invested 50 years ago in the stock market would be worth about 1952, same amount put into a savings account would only be worth 284. Go for the stock market if you can go that long, and stay away from collectible cars that may or may not actually end up as collectibles. Do you really want to try and outguess what this young generation is going to consider valuable????? Link to comment Share on other sites More sharing options...
chuckstang Posted January 27, 2007 Report Share Posted January 27, 2007 I'm guessing that even the original shelbys in the 60s and 70s had pretty good depreciation after only 3 years. If you want an investment, think 40 years or so, or hit the mutual funds. As an aside, my 17 year old asked me question about how to do some investing (he's got a good job with best buy, and they offer a matched 401K). Found out that $50 invested 50 years ago in the stock market would be worth about 1952, same amount put into a savings account would only be worth 284. Go for the stock market if you can go that long, and stay away from collectible cars that may or may not actually end up as collectibles. Do you really want to try and outguess what this young generation is going to consider valuable????? Oh man, I hated Best Buy I worked their full time through college and they just were terrible to work for. Now that I am out of school I have a job that I hate equally as much but get paid more than double so I just grin and bear it I did not take part in their 401k or my new job's 401k, but I think I am now! I just dont think for the future as I am only 23 Link to comment Share on other sites More sharing options...
KCMO-GT500 Posted January 27, 2007 Report Share Posted January 27, 2007 Oh man, I hated Best Buy I worked their full time through college and they just were terrible to work for. Now that I am out of school I have a job that I hate equally as much but get paid more than double so I just grin and bear it I did not take part in their 401k or my new job's 401k, but I think I am now! I just dont think for the future as I am only 23 He's actually in the group that does pc repair etc, and makes about 11/hr, which for a junior in high school works out well, since he's a hacker anyway. They just beefed up their 401K, and match dollar for dollar up to 3 or 5%. I'm glad he's thinking along the lines of how to invest, and not just how to spend. Get into your job's 401K NOW! the money you put in over the next 5 years will matter more than the entire 10 or 15 years just prior to retirement. Link to comment Share on other sites More sharing options...
jrichard Posted January 27, 2007 Report Share Posted January 27, 2007 On topic: My guess==> the GT500 will depreciate like any other car...so maybe the 03/04 Cobra comparison is a good one. Off topic: Hopefully your son will invest in the 401k plan at least up to the matching limit...that's free money that really gives his savings a boost. The power of compounding is huge...so starting early is a great thing. You're never too young...and if you have automatic deductions for 401k contributions, you won't even notice the money "missing" from your paycheck. Getting matching funds is like putting a free supercharger on your savings account... Link to comment Share on other sites More sharing options...
Grabber Posted January 27, 2007 Report Share Posted January 27, 2007 IMO all new cars are money losers. They are bought to serve a need for transportation and a want called pleasure. The ADM is not something that I will ever get back. The depreciation factor is a fact of life for a new car. I will be keeping the car for my lifetime and passing it to one of my kids when I am too old to have fun with it. So how much will the car be worth in 3 years - Not sure, and I am going to tell you what you do not want to hear. I :P DON'T :D CARE :o Link to comment Share on other sites More sharing options...
carnut Posted January 27, 2007 Report Share Posted January 27, 2007 Just curious what your thoughts are on the seldom discussed reality of depreciation. Assuming I buy a GT500, pay the average $15K-$20K over to be the first guy on the block to have it, drive it regularly, keep it near mint, then try to sell it in 3 years after it's got 20,000 miles on it. What will it bring me? I'd guess maybe in the $25K-$30K range, considering the usual depreciation (even on nice, high line cars ... admit it or not!) ... That would be about half of what I paid for the car if it turns out that way! OUCH! So what's everyone's take on it? And let's avoid the politically correct answer of "It doesn't matter, if you have the money to pay the ADM and want it, then do it and enjoy it. Don't worry about the value." (Because realistically the value of this car in a few years DOES matter to ALL of us!!) Do you guys think value will be based on retail ($43K), or do you think there's any prayer of any of us getting some of the ADM recouped? Mine is a rare collector car worth maybe 2 times what I paid for it Link to comment Share on other sites More sharing options...
Alloy Dave Posted January 27, 2007 Report Share Posted January 27, 2007 I'm guessing that even the original shelbys in the 60s and 70s had pretty good depreciation after only 3 years. If you want an investment, think 40 years or so, or hit the mutual funds. As an aside, my 17 year old asked me question about how to do some investing (he's got a good job with best buy, and they offer a matched 401K). Found out that $50 invested 50 years ago in the stock market would be worth about 1952, same amount put into a savings account would only be worth 284. Go for the stock market if you can go that long, and stay away from collectible cars that may or may not actually end up as collectibles. Do you really want to try and outguess what this young generation is going to consider valuable????? +1 - I work in Finance....anyone who thinks of cars ONLY as an investment is not going to make it. Yes, some cars will hold their value better than others...but there is NO WAY you're going to make as much on a car as you do in the market...once you adjust for all the costs involved in keeping a car in mint condition. Dont' get me wrong...it has happened...such as the AC Cobras....but there's no way to predict today how these cars will turn out 40 years from now. To give you an idea...here's a simple formula for you called a future value formula. If you want to know how much a certain investment today will be worth in the future...use the formula FV = PV (1+i)^n. FV = the future value PV = the present value i = interest rate you think you can earn n = number of years (note that the ^ sign means "raised to the power of") So for example, let's say you take that $50,000 you paid for your GT500 and invested it in the stock market. The market has historically returned about 10% a year. Plug those numbers into the formula....your GT500 would have to be worth over $2.26 MILLION dollars to beat the stock market. And remember...that assumes you spend ZERO maintaining the car every year....which won't happen. Dave Link to comment Share on other sites More sharing options...
Grabber Posted January 27, 2007 Report Share Posted January 27, 2007 Nutty & Poopy, I have heard that GO will be worth more and hold it's value better than the Red. :happy feet: Link to comment Share on other sites More sharing options...
Alloy Dave Posted January 27, 2007 Report Share Posted January 27, 2007 Your car won't be worth much with no doors! Red cars blow the doors off GO cars! Sorry just a known fact. You heard it first on Stangs. Buy Alloy cars are the fastest...we all know that scarf boy. Link to comment Share on other sites More sharing options...
Grabber Posted January 27, 2007 Report Share Posted January 27, 2007 Your car won't be worth much with no doors! Red cars blow the doors off GO cars! Sorry just a known fact. You heard it first on Stangs. Wanna race poop dog. Drive on over. Link to comment Share on other sites More sharing options...
tnn Posted January 27, 2007 Report Share Posted January 27, 2007 I would really love too! well if you think about it in the sixtys shelby was not established .now that he is the value of our cars will do nothing but go up .we are not in the sixtys any more. Link to comment Share on other sites More sharing options...
carnut Posted January 27, 2007 Report Share Posted January 27, 2007 +1 - I work in Finance....anyone who thinks of cars ONLY as an investment is not going to make it. Yes, some cars will hold their value better than others...but there is NO WAY you're going to make as much on a car as you do in the market...once you adjust for all the costs involved in keeping a car in mint condition. Dont' get me wrong...it has happened...such as the AC Cobras....but there's no way to predict today how these cars will turn out 40 years from now. To give you an idea...here's a simple formula for you called a future value formula. If you want to know how much a certain investment today will be worth in the future...use the formula FV = PV (1+i)^n. FV = the future value PV = the present value i = interest rate you think you can earn n = number of years (note that the ^ sign means "raised to the power of") So for example, let's say you take that $50,000 you paid for your GT500 and invested it in the stock market. The market has historically returned about 10% a year. Plug those numbers into the formula....your GT500 would have to be worth over $2.26 MILLION dollars to beat the stock market. And remember...that assumes you spend ZERO maintaining the car every year....which won't happen. Dave Gee, someone has to always come by and spoil things Link to comment Share on other sites More sharing options...
Grabber Posted January 27, 2007 Report Share Posted January 27, 2007 Gee, someone has to always come by and spoil things Nutty, I will be keeping a real close eye on Dave from now on. Is there anyone else bothering you? Link to comment Share on other sites More sharing options...
Alloy Dave Posted January 27, 2007 Report Share Posted January 27, 2007 You must have missed the updates from SVT.I can just see the spies from the other forums reading this stuff and a mass rumor starting and then the 2008 cars will be swarmed with orders for Red cars because they think they are faster. Then the other cars will really be rare! I think I just shat myself. Link to comment Share on other sites More sharing options...
Grabber Posted January 27, 2007 Report Share Posted January 27, 2007 I think I just shat myself. Dave, If you meant "Shart" please go shower. Link to comment Share on other sites More sharing options...
1BADGT500 Posted January 28, 2007 Report Share Posted January 28, 2007 Just curious what your thoughts are on the seldom discussed reality of depreciation. Assuming I buy a GT500, pay the average $15K-$20K over to be the first guy on the block to have it, drive it regularly, keep it near mint, then try to sell it in 3 years after it's got 20,000 miles on it. What will it bring me? I'd guess maybe in the $25K-$30K range, considering the usual depreciation (even on nice, high line cars ... admit it or not!) ... That would be about half of what I paid for the car if it turns out that way! OUCH! So what's everyone's take on it? And let's avoid the politically correct answer of "It doesn't matter, if you have the money to pay the ADM and want it, then do it and enjoy it. Don't worry about the value." (Because realistically the value of this car in a few years DOES matter to ALL of us!!) Do you guys think value will be based on retail ($43K), or do you think there's any prayer of any of us getting some of the ADM recouped? My question is why the hell would anybody buy a new GT500 (even at 15-20 over), and then sell it 3 years later??? And who's "us"? It DOES NOT matter to me! My car won't depreciate in 3 years, or in 5, 10 or even 20 years cause it won't be for sale. You don't have depreciation if you refuse to sell it. I'm going to keep mine until I die and then just leave it to my favorite person in the world (and the one who would appreciate it most). Why buy something you plan to sell in 2 or 3 years, just lease it if that's the case. Link to comment Share on other sites More sharing options...
carnut Posted January 28, 2007 Report Share Posted January 28, 2007 My question is why the hell would anybody buy a new GT500 (even at 15-20 over), and then sell it 3 years later??? And who's "us"? It DOES NOT matter to me! My car won't depreciate in 3 years, or in 5, 10 or even 20 years cause it won't be for sale. You don't have depreciation if you refuse to sell it. I'm going to keep mine until I die and then just leave it to my favorite person in the world (and the one who would appreciate it most). Why buy something you plan to sell in 2 or 3 years, just lease it if that's the case. I would take care of it real nice, most people think I am their favorite person. Link to comment Share on other sites More sharing options...
Ripthedealeroff Posted January 28, 2007 Report Share Posted January 28, 2007 Just curious what your thoughts are on the seldom discussed reality of depreciation. Assuming I buy a GT500, pay the average $15K-$20K over to be the first guy on the block to have it, drive it regularly, keep it near mint, then try to sell it in 3 years after it's got 20,000 miles on it. What will it bring me? I'd guess maybe in the $25K-$30K range, considering the usual depreciation (even on nice, high line cars ... admit it or not!) ... That would be about half of what I paid for the car if it turns out that way! OUCH! So what's everyone's take on it? And let's avoid the politically correct answer of "It doesn't matter, if you have the money to pay the ADM and want it, then do it and enjoy it. Don't worry about the value." (Because realistically the value of this car in a few years DOES matter to ALL of us!!) Do you guys think value will be based on retail ($43K), or do you think there's any prayer of any of us getting some of the ADM recouped? Gentlemen/Women, I think we're forgetting something here. This is a limited production car. It is not the basic Mustang Gt etc. It is a car with a lot of history and is attached to one of my heroes whose name is on it. This car has also gotten a lot of publicity and is very unique. Therefore I don't believe that the basic depreciation rules apply to it. When they stop producing the 07 models, that's it. You will no longer be able to purchase the first year of the remake of the Shelby GT-500...the 40th anniverssary of the GT-500. On a side note, I know of two dealers who are now asking over $100,000 for a 2007 and I know of one that was actually sold at that price. With this being said, I too do not plan on selling one of the dreams of my life, depreciation or appreciation. My daughter has already taken ownership when it's the right time down the road. She has been as excited as I have throughout this great time in history! Link to comment Share on other sites More sharing options...
Jesse_Bolt Posted January 28, 2007 Report Share Posted January 28, 2007 +1 - I work in Finance....anyone who thinks of cars ONLY as an investment is not going to make it. Yes, some cars will hold their value better than others...but there is NO WAY you're going to make as much on a car as you do in the market...once you adjust for all the costs involved in keeping a car in mint condition. Dont' get me wrong...it has happened...such as the AC Cobras....but there's no way to predict today how these cars will turn out 40 years from now. To give you an idea...here's a simple formula for you called a future value formula. If you want to know how much a certain investment today will be worth in the future...use the formula FV = PV (1+i)^n. FV = the future value PV = the present value i = interest rate you think you can earn n = number of years (note that the ^ sign means "raised to the power of") So for example, let's say you take that $50,000 you paid for your GT500 and invested it in the stock market. The market has historically returned about 10% a year. Plug those numbers into the formula....your GT500 would have to be worth over $2.26 MILLION dollars to beat the stock market. And remember...that assumes you spend ZERO maintaining the car every year....which won't happen. Add the variable of the commodities market... ...like in forty years from now, gasoline won't be the fuel of choice. Your Shelby will be worth the equivalent of scrap value minus the rust. Or worse, have to pay a disposal fee to get rid of it. JB Link to comment Share on other sites More sharing options...
shelbyGT500 Posted January 28, 2007 Report Share Posted January 28, 2007 I was just told yesterday from a ford rep that although there will be more years of the 500 made (maybe not 09), this will be the "ONLY" 500 hp model to be available. Ford will be coming out with 1-2 different packages each year to keep interest up but they will not be 500HP cars. That to me is a real good thing.Chances are that this will be the last 500 hp mustang ever.For this reason i think the low mileage cars will stay very stable although i dont see them appreciating like some think.Id say in 2010, they will still be a $50k car with less than 20k miles on them. Yes we will take a loss on the adms but i dont think we will lose much or gain anything for many many years. Also, I think we should drive these cars and enjoy them .For the people who think they will be worth big bucks think about this. There are Sooooo Many people who are buying these cars and putting them away for some pay day in 30-40 years that by the time you think they might be worth something, there will be So many available, it will definatley decrease the value. Say out of 30k cars only 1000 cars are "put away". 1000 cars over a say 10 year term is 100 cars a year . Thats a hell of alot of cars to choose from specially when there are only a few big auctions to handle collectable cars and ebay. .That means 1 will sell every 3 days on ebay.................... Different when you look at the big picture , HUH????? ! Not to mention, i believe there are probally 1000 already "put away". This isnt the 60s, drive em , take care of em, and enjoy them. I think they will always bring good money but yor not going to put your kid through college. DRIVE EM!!!!! Link to comment Share on other sites More sharing options...
BoneDoc Posted January 28, 2007 Report Share Posted January 28, 2007 i don't give a Rats about depreciation! there are 2 ways I would part with my shelby: 1-it is totalled in a collision, or 2-when I die..... you'll have to pry my cold dead fingers from the steering wheel. Link to comment Share on other sites More sharing options...
HSURB Posted January 28, 2007 Report Share Posted January 28, 2007 Your Shelby will be worth the equivalent of scrap value minus the rust. Or worse, have to pay a disposal fee to get rid of it. JB JB - thanks for the heads up. I need to get on the phone this afternoon and locate someone to crush all of these cars I've collected over the years. I want to avoid paying the future "disposal fee" at all costs. HSURB Link to comment Share on other sites More sharing options...
CobraCrazy Posted January 28, 2007 Report Share Posted January 28, 2007 i don't give a Rats about depreciation! there are 2 ways I would part with my shelby: 1-it is totalled in a collision, or 2-when I die..... you'll have to pry my cold dead fingers from the steering wheel. +1 (I hope neither occurs real soon though!) CC Link to comment Share on other sites More sharing options...
KMCBOSS Posted January 28, 2007 Report Share Posted January 28, 2007 IMHO many of you folks don't understand that the Shelby GT500 is not a regular Mustang! It is not a cobra, it is not a Saleen, it is not a Roushe or terminator etc, etc. You are trying to compare apples with oranges! The Shelby may not appreciate in value immediately but this car will always be in the special interest catagory just like 60s vintage iron. I would not spend this much money on any other new production car. I think this car has the best chance to atleast hold or gain value than anything else so enjoy the ride while we get there. Link to comment Share on other sites More sharing options...
1BADGT500 Posted January 28, 2007 Report Share Posted January 28, 2007 I was just told yesterday from a ford rep that although there will be more years of the 500 made (maybe not 09), this will be the "ONLY" 500 hp model to be available. Ford will be coming out with 1-2 different packages each year to keep interest up but they will not be 500HP cars. That to me is a real good thing.Chances are that this will be the last 500 hp mustang ever. I hope this is not true. Link to comment Share on other sites More sharing options...
shelbyGT500 Posted January 28, 2007 Report Share Posted January 28, 2007 who knows, ford hasnt been exactly honest about much with this car. It could just be one more way of keeping sales up I would not bank on anything ford says.Look at them,There billions of $$ in the hole Link to comment Share on other sites More sharing options...
Joe G Posted January 29, 2007 Report Share Posted January 29, 2007 Ford will be coming out with 1-2 different packages each year to keep interest up but they will not be 500HP cars. That to me is a real good thing.Chances are that this will be the last 500 hp mustang ever. The sky is falling, the sky is falling... I was just told yesterday from a ford rep that although there will be more years of the 500 made (maybe not 09), this will be the "ONLY" 500 hp model to be available. That doesn't mean that all other Mustangs will be less than 500hp - the statement (which I would challenge anyone who has official knowledge within Ford made) just means that we could have a 501hp, 502hp, 600hp etc. Mustang in the future. Link to comment Share on other sites More sharing options...
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