Resale on Gen 4s ?

Discussion in 'Generation 4 - General Discusson' started by Foran, Nov 28, 2017.

  1. Foran

    Foran SHO Member

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    I have a 2015 PP with 14K on it. I just returned it to stock because my wife has driven the car 90% of the time I've owned it. It's a leased car with 11 months left. Is $26,000 reasonable for a super clean SHO with low miles ? Also have a set of snow tires on wheels. Thanks !
     
  2. rubydist

    rubydist Moderator Staff Member

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    In my part of the world, NADA shows $25500 for clean trade and $27900 for retail. Typically the market is a little soft for these cars, and they have been going for about $1000 under the book values. So, if your current buyout is $26000 on the lease, that's a pretty fair number, especially since you know exactly how its been treated. If your buyout a year from now is $26k, that's likely too high.
     
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  3. Foran

    Foran SHO Member

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    It's $22K next November. Thanks!
     
  4. peglegtom

    peglegtom SHO Member

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    I just paid 27K for a CPO 2015 w/PP with 23K miles in the midwest. Car is very clean with no significant damage (some paint scrape of right side mirror is all I have found so far). When I was looking, had 3 to chose from within 100 miles of my home. One was Tri-finish (metallic) white with a reported accident and 12K miles for 26K, the one I bought at 27K, and a Tuxedo black/black with 36K miles for 29K. None of the dealers would deal (go figure). These of course are retail, not wholesale prices, so take them for what they're worth. Also just purchased a set of 18" winter tires on aluminum wheels for about $1300 that you have to consider, but dealer probably won't care about them with regard to residual value of lease. CPO is geneally considered to be about $1500. Hard to say what value will be next November, as SHO's are large sedans that have no significant following currently. Right now, it looks like Ford is just playing out the string on all Taurus's (Tauri?) due to low sales volume. I would monitor the market (retail probably easier) and see where the chips fall next November. If values are lower, you may be able to negotiate with the dealer, because how will he be able to sell a car that he has $22K into if the market does not support it. If the values are higher, you can purchase the car and keep it or try to sell it.

    Just my $0.02
     
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  5. rubydist

    rubydist Moderator Staff Member

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    Just one correction on what peglegtom stated above: At the end of the lease, the dealer does not own the car, Ford Motor Credit owns the car. Ford puts a number on it, for which the dealer can choose to buy it or choose not to buy it (about a week window). If the dealer does not buy it, then Ford sends it to the wholesale auction in the area (generally Manheim) and sells it there. At the auction, there are 2 stages - first only Ford dealers have a chance to buy it, and if not bought during that period of time (around 14 days) then any dealer can buy it. This is why you may see, in the dealer's back lot, a vehicle with a sign in it that says something like "lease return, vehicle not for sale."

    Now the interesting part of that is, if the wholesale market for the car model is soft, the price for which the dealer can buy the car from Ford is (in some cases) less than the lease buyout price for the customer (because the lease buyout price was set at the beginning of the lease in anticipation of the lease-end value, and the dealer purchase price is set based on current market values) so there are times when the customer can turn in the car, the dealer can buy it from Ford and certify it and then sell it back to the customer for the same as the lease buyout price was. The challenge is that the dealer does not know their purchase price until Ford sets it, usually a week or two after it has been turned in from the lease, so choosing that path is a bet on the part of the dealer and the customer.

    Because of all the damaged vehicles in the southeast this past summer due to hurricanes, a lot of lease turn-ins have been shipped to the wholesale auctions in those areas which has reduced the overall supply and held prices up. That suggests that prices may soften this winter as that pent up "extra" demand gets behind us.
     
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  6. Foran

    Foran SHO Member

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    I decided not to sell it. I leased it at $375 with nothing down and at the end of the lease it will have around 18,000 on it , so I might purchase it for 22K.
     
  7. BoostfoSHO

    BoostfoSHO SHO Member

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    I got my 15 pp triple white metallic with 10k miles for 26k

    Sent from my Moto Z (2) using Tapatalk
     
  8. Foran

    Foran SHO Member

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    What do you mean by "triple white" ?
     
  9. BoostfoSHO

    BoostfoSHO SHO Member

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    Meant white platinum metallic tri coat.

    Sent from my Moto Z (2) using Tapatalk
     
  10. Foran

    Foran SHO Member

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    Beautiful Color ! That would be my first choice.
     
  11. BoostfoSHO

    BoostfoSHO SHO Member

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    It really is, love the metallic in it. Even though I feel like it's the most common one

    Sent from my Moto Z (2) using Tapatalk
     
  12. Crazyeights

    Crazyeights SHO Owner

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    Was it a CPO for that price?
     
  13. BoostfoSHO

    BoostfoSHO SHO Member

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    Nope, they wanted an extra 3k for the CPO

    Sent from my Moto Z (2) using Tapatalk
     
  14. rubydist

    rubydist Moderator Staff Member

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    Just so you know, in order to make the car a CPO, the dealer must do a more extensive shop review of the vehicles condition - most shops figure ~$250 extra for that, and they need to pay Ford ~$1000 for the extended warranty. Trying to sell that for $3k is a pretty good profit situation for the dealer...
     
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  15. Lostneye

    Lostneye SHO Member

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    It does cost the dealership money to certify the car but $3k is ridiculous.

    At that point if you want some piece of mind but a Ford extended warranty for half that.
     
  16. BoostfoSHO

    BoostfoSHO SHO Member

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    Yea i told them I didn't need the CPO since it was still under warranty by mileage and time and I knew I was gonna modify it as soon as it left the dealer.

    Sent from my Moto Z (2) using Tapatalk
     
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