Vehicle pricing

[PurplDrank]

In a year or two I am looking to purchase some pre-owned vehicle. I am a huge fan of the newer model Ford Fusion, I think they look absolutely sexy. Anyway, news is spreading that Ford will not be making as many sedans or stopping sedan production completely. They are suppose to be like a GMC type of company now where they only sell Trucks and SUV's. Will the prices of these Ford sedans go up once production stops? Even on pre-owned?

[AlTech]

1 hour ago, PurplDrank said:

In a year or two I am looking to purchase some pre-owned vehicle. I am a huge fan of the newer model Ford Fusion, I think they look absolutely sexy. Anyway, news is spreading that Ford will not be making as many sedans or stopping sedan production completely. They are suppose to be like a GMC type of company now where they only sell Trucks and SUV's. Will the prices of these Ford sedans go up once production stops? Even on pre-owned?

I would guess so due to the decreasing supply and potentially increasing demand for them.

[vetali]

Likely not caused by them getting killed off. There were plenty of them made. Fords reasoning for killing off sedans is because the market is heavy into SUV and CUVs where profit margins are much higher. However, the proposed tariffs will increase used car prices by a big margin if they go through. 

[PurplDrank]

2 minutes ago, theninja35 said:

Ford is stopping production of all of their sedans and small vehicles because the demand is shrinking. In the US, the trend is that people are switching to small-UVs, SUVs, and trucks because gas isn't very expensive and most UVs now are just cars with a more comfortable ride and more storage. Fiat-Chrysler's majority of sales come from Jeep and RAM which offer UVs and trucks and nothing else. I still think Ford is making a terrible decision with this transition, especially since the Taurus and Fusion are being phased out, but I'm not a researcher so I could be wrong. I think the prices will either be the same or less than what they currently are.

I see you are in the metro Detroit area as well. I am in Macomb County near Warren. Nice to see a fellow Detroiter on the forums. Anyway, I also think ford is making a terrible mistake. Especially considering the economy will come back down and maybe have another recession, simply what goes up...must come down. Sedans are much much more economical. 

[Drak3]

1 minute ago, PurplDrank said:

Sedans are much much more economical. 

Outside of the base models of the cheapest sedan lineups, not really. Smaller SUVs and hatchbacks can get the same fuel mileage as sedans. 

[Monkey Dust]

34 minutes ago, Drak3 said:

Outside of the base models of the cheapest sedan lineups, not really. Smaller SUVs and hatchbacks can get the same fuel mileage as sedans. 

Not quite true. SUVs have a larger frontal area than their equivalent sedans & hatchbacks so at anything above city speeds they will always use more fuel. They are also typically heavier too, also worse for fuel. 

[PurplDrank]

Just now, Monkey Dust said:

Not quite true. SUVs have a larger frontal area than their equivalent sedans & hatchbacks so at anything above city speeds they will always use more fuel. They are also typically heavier too, also worse for fuel. 

Agreed SUVs might be equivalent to sedans on highway or expressway but they do not match up to sedans in the city. 

[dizmo]

28 minutes ago, Monkey Dust said:

Not quite true. SUVs have a larger frontal area than their equivalent sedans & hatchbacks so at anything above city speeds they will always use more fuel. They are also typically heavier too, also worse for fuel. 

 

27 minutes ago, PurplDrank said:

Agreed SUVs might be equivalent to sedans on highway or expressway but they do not match up to sedans in the city. 

 

Actually it is true...

If you look at the numbers between a 2017 Fusion and Escape, both FWD with the same engine, their fuel economy is almost identical.

Also, the weight is almost identical between the two as well, with some models of the Escape coming in a couple hundred pounds heavier.

[CarlTime]

Buy what you like, trying to play the will it hold value better game is something a lot of people try and do these days.

But it depends entirely on how you service and maintain the vehicle, if you have accidents in it, and if you try and sell it after its run out of warranty.

The only other thing I would watch out for is if the vehicle you are buying is being leased heavily.

If you pick something up new and keep it for 3 years and try and trade it in or sell it right when everybody else is returning their leases then the market is going to be flooded with the vehicle your trying to get out of, and you gonna have a bad time.

[CarlTime]

The market is probably never coming back on sedans tho, that said I just bought a new Chevy Cruze a few months ago.

[PurplDrank]

Just now, CarlTime said:

The market is probably never coming back on sedans tho, that said I just bought a new Chevy Cruze a few months ago.

Chevy is supposedly doing the same thing as ford. I am saying that these larger vehicles tend to be more expensive. I mean really a Silverado alone costs about $40,000. 

[Drak3]

5 minutes ago, PurplDrank said:

It takes more resources to build larger vehicles

That isn't necessarily true. Some vehicles are bigger but the size difference is due to the larger vehicle having more empty space.

[dalekphalm]

23 hours ago, dizmo said:

Actually it is true...

If you look at the numbers between a 2017 Fusion and Escape, both FWD with the same engine, their fuel economy is almost identical.

Also, the weight is almost identical between the two as well, with some models of the Escape coming in a couple hundred pounds heavier.

Disclaimer - the link might not work properly:

https://www.fueleconomy.gov/feg/Find.do?action=sbs&id=37382&id=37358

 

So, you're right, for the most part.

 

2017 Fusion 1.4T FWD vs 2017 Escape 1.4T FWD

Combined 27 MPG vs Combined 26 MPG

City 23 MPG vs City 23 MPG

Highway 34 MPG vs Highway 30 MPG

 

So the main difference is you get a 4 MPG improvement on the Fusion vs the Escape, when driving highway speeds.

 

With that in mind, a smaller and lighter Fusion is going to "feel" more powerful with the same 1.4L Turbo engine. The Escape is going to feel more sluggish and unresponsive by comparison.

 

Strike that, while the Escape is heavier, it only weighs a good 100 pounds more.

 

The Fusion is around 3446 lbs (varies per model load out), and the Escape weighs in at around 3560 lbs.

 

So if you drove a Fusion with a smaller teenager in the car, it now weighs the same as if you drove an Escape by yourself.

 

The Fusion also comes in a Hybrid variant that ups the fuel efficiency to 42 MPG combined (43 city, 41 highway), but I can't find specs for a 2017 Escape hybrid - did they stop making the Hybrid variant? Cannot compare.