Ford Value

The Ford Motor Company are an American car manufacturer based in Detroit, Michigan and founded by the pioneer of the assembly line, Henry Ford. Ford owns stakes in a number of other companies including Mazda and Aston Martin and operates under a number of brands. It is the fifth largest car manufacturer in the world and the second largest in the United States by number of car sales and is well known for supplying many companies who bulk buy cars including rental fleets. They aim at the lower end of the market, mass producing cheap cars for lower income families and individuals.

Unfortunately for Ford owners, the aforementioned fact means that of all car brands this is one of the ones that depreciates most quickly. Ford cars typically lose the majority their value within just a few years of a brand new purchase. However, the upside of this is that if you like to buy Ford cars it is almost always possible to find one in the model you want on the second hand market.

The Ford Focus is one of Ford’s better known models and is a highly compact car that is also suitable for families. Within a year a Focus will have generally depreciated to about  £12,458 but by three years it will have already hit £8,290, less than half of its original cost. Within five years it will have gone down to a maximum of £6,000 and by year seven it would normally sell for around £4,198.

By contrast, the Ford Galaxy is a five-door multi-purpose vehicle aimed at a segment of the market with slightly more to spend and within a year will still have retained £19,588 of its value. However, within three years you can expect the Ford phenomenon to have kicked in and taken its value down to £13,866 which, again, may not be more than half the amount that you first bought it for. Within five years it will usually be worth no more than £9,943 or just over a third of its value when bought new.

One of the cheapest Ford models you can buy is the Ford Ka and this is generally considered a good first car for a young person. As a result, the second hand market is healthy and this model of Ford does not depreciate anywhere near as quickly as the others. Within a year of buying a Ford Ka it will generally still be worth £7,956, within three years £6,286, within five years £3,586 and within seven years £2,213.

If there is any lesson to be learned from this data it is that Fords should not be bought on a short term basis by anyone. They are generally aimed at the lower end of the market and so only make sense as an economical purchase. As such, if you buy a Ford you should buy it to run it into the ground, the drive it for as long as it holds together in order to get the absolute maximum value for it.