I just did some math on the value of my car. It's a 2007 GT, automatic, pretty much loaded with optional red interior, heated seats, leather dash, etc. I added an indash Kenwood DVD with navigation, ipod controls, the works.
My car with taxes, etc. was about $31,000 total. Not a bad deal when you consider sticker was about $35,000 and in Kentucky you pay 6 percent on the price of the car in taxes regardless of the trade-in.
(That has changed temporarily at least to supposedly encourage people to buy cars.)
I was offered $18,500 on a trade-in. That is a loss in value of $12,500 over 31 months or, and here is what really gets me, $403.23 per month.
That almost sickens me to calculate. Man I really want a 2011 GT but that loss has really thrown me.
And what will be out next year or for the 50th anniversary?
I love my car. I would really love a 2011. I love almost all Mustangs. Heck I love almost all cars, but at what point does an obsession become too costly?
I can understand why car dealers are in trouble. A $403.23 per month loss. How many people in today's economy could afford that. Most will hold onto their cars until they fall apart. Who could blame them? My first two houses, by the way, decent houses, all cost less than $40,000. (The first was $19,000.)
I also learned that the 2009 Focus my wife both six months ago with a sticker of well over $22,000 (It is fully loaded with leather, moonroof, premium sound, etc.) is now worth $12,500.
All I can say is, I am physically ill after hearing and repeating all that.